have been 35% a de- cade ago. Find the difference in the interest charges based on the different rates.

Q: Find the effective rate of  interest if the nominal rate is 12 % compounded bi - monhtly.

A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2)  Bi…

Q: Can you show the steps specifically on how you got the quarterly interest rate. Instead of just the…

A: The use of rate function in excel is a prominent way to estimate accurate interest rate of a loan…

Q: Which of the following is the cheapest for a borrower? 6.7% annual money market basis 6.7%…

A: Interest rate are compounded than effective interest rate is more and effective interest rate is…

Q: The approximate effective cost (EC) of financing the discount price of trade credit under terms…

A: Discount (d) = 2% for 10 days and then net on last day, which is day 30. Total days (T) = 30…

Q: Compute the annual approximate interest rate of not taking a discount of 2/15 net 30.

A: The company which sells goods on sales will offers a discounts to its accounts receivables if it…

Q: If there is a deflation rate of 2% and your account is earning a nominal interest rate of 1.75%,…

A: Deflation rate (d) = 2% Nominal interest rate (r) = 1.75%

Q: If interest on a savings account is compounded semiannually, the effective rate of interest will…

A: In nominal interest is like simple interest but there is no compounding , in simple interest there…

Q: What would you expect the nominal rate of interest to be if the real rate is 5 percent and the…

A: We require to compute the nominal rate of interest in this question.

Q: What is the equivalent rate of interest (in %) for a discount rate of 7.9% for 77 days? Round your…

A: Interest rate is referred as the percentage of the principal charged through the lender regarding…

Q: what is the value of $100

A: The future value of money is determined by compounding the original amount with interest. It…

Q: For each of the following cases, indicate (a) to what interest rate columns and (b) what number of…

A: The time value of money is a key financial concept that indicates that a dollar amount in possession…

Q: thanks

A: Formula for compound interest is: A = P(1+r/n)^nt Where A is the future amount, P is the principal,…

Q: ic formula for present value, along with the given discount rate, r, and the number of periods, n,…

A: Present value = Future value * (1 + discount rate)-No. of periods

Q: f the interest is compounded monthly then m is equal to?

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: The nominal interest rate on a loan is 12.5% and inflation is 3%. What is the real interest rate?

A: Information Provided: Nominal Rate = 12.5% Inflation = 3%

Q: site, find another.) Type in a nome price of $300,000. Leaving all other entries as they are, enter…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

Q: Find the APR, or stated rate, in the following case: (show answer and excel equation formula) An…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10?

A: Future value = Present value *(1+r)^n

Q: 1. Using the example of a savings account, explain the difference between the effective annual rate…

A: Saving account is the type of deposit account in which interest is paid on the amount deposited.…

Q: b) An APR of 5.875 produces an effective annual interest rate of 6.04% what is the compounding…

A: The effective annual rate is the actual return that the company owes to its investors.

Q: Consider each part below independently. (Ignore income taxes in your calculations.) Use the built-in…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: (TRUE or FALSE?) The PV of the ordinary annuity is larger than the PV of the annuity due because the…

A: The problem case focuses on evaluating the statement that says that the PV of an ordinary annuity is…

Q: Use the compound interest formula A=​P(1+​r)^t and the given information to solve for r.…

A: We need to use compound interest formula to sove this problem A=P(1+r)t  Where P=principal r=rate of…

Q: Merrill Corp. has the following information available about a potential capital investment: Initial…

A: NPV means PV of net benefits which arises from the project during the life of the project. It is…

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A: The question is asking about the relationship between the factors in the present value of an annuity…

Q: Q1. (a) What effect does compounding interest more frequently than annually have on: (i) future…

A: Compound Interest is the interest on a deposit or loan calculated on the basis of initial interest…

Q: A 3% discount rate is given. Compute for the interest rate. O 3.09% O 5.09% O 6.09% O 4.09%

A: Zero coupons are bonds a type of bonds which are issued at discount and redeemed at par. Selling…

Q: what is the equation to get the 0.007984 monthly rate.

A: The Rate function in the excel is used in the solution.

Q: The (blank) interest rate is referred to as APR and the (blank) interest rate is the true rate…

A: Effective rate ( EAR) FORMULA: EAR =1+APRMM-1M = frequency of compounding

Q: Monthly interest rate?

A: Monthly interest rate is the interest charged on the unpaid balance of credit card.

Q: You purchase a 138-day Treasury bill for $9970.10 that is worth $10,000 when it matures. What is the…

A: A treasury bill is a kind of debt security issued by the government and private companies for…

Q: What is the 2-year discount factor if the interest rate is 4% in both years?

A: Under the concept of time value of money discounting factor refers to the rate or percentage that is…

Q: Suppose the real rate is 2.32 percent and the inflation rate is 2.68 percent. What rate (in percent)…

A: Real rate of return = 2.32% or 0.0232Inflation rate = 2.68% or 0.0268We need to calculate the…

Q: If an electric appliance present worth is P 11,712 and is being paid P 1,636 indefinitely, calculate…

A: Perpetuity means infinite no. of payments of same amount and made in equal intervals. Person can…

Q: How long will it take for $570 to grow to $2,700 at the following interest rates? 5.7 9.7 17.7

A: When we make an investment or deposit an amount today it grows with passage of time. This is because…

Q: Calculating Real Rates of Return IfTreasury bills are currently paying 4.7 percent and the inflation…

A: Real rate of return refers to the return after the adjustment of the inflation rate.

Q: Find the effective rate of interest corresponding to a nominal rate of 5.5% compounded…

A:

Q: what nominal rate of interest compounded quartely is quivilant to a effective rate of 5.99%.

A: We will use formula for effective rate of interest to find nominal rate :   re = 1 + imm   -  1…

Q: . Com

A: Interest rate : The cost of borrowing somebody else's wealth is called interest. Let's say you get a…

Q: Compute the annual approximate interest rate of not taking a discount of 2/10 net 60.

A: The company which sells goods on sales will offer discounts to its accounts receivables if it pays…

Q: Suppose that the interest rate is 1%. What is the value of the discount factor, v? v = 数字 Enter a…

A: Present value (PV) is a financial concept that measures the present value of money in the future and…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.