The rate quoted by Big Bank on a car loan is 8 percent. The annual rate of inflation is currently 1.5 percent. What is the approximate real interest rate paid by the consumer on this loan?

A bank is willing to lend money at 6% interest, compounded annually. How much would the bank be willing to loan you in exchange for a payment of $600 4 years from now?

If an interest rate of 8.9% compounded semi-annually is charged on a car loan, what effective rate of interest should be disclosed to the borrower?

What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use the formula method.

If a credit card charges 1½% interest every month, what are the nominal and effective interest rates per year?

First National bank charges 12.4 percent compounded monthly on its business loans. First United Bank charges 12.7 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?

A car dealer is advertising a loan with monthly payments and a 9.9 percent nominal rate. What is the loan s EAR?

Suppose your bank manager quoted you a 14% annual percentage interest rate on a loan that you need obtain urgently, he stated further that he would be charging the interest rate on the loan, on a bimonthly (every two) basis, what is the Effective Annual Rate that you would be paying?

A firm charges its credit customers 1.67% interest per month. What is the effective interest rate?

A payday loan is structured to obscure the true interest rate you are paying. For example, in Washington, you pay a $30 "fee" for a two-week $200 payday loan (when you repay the loan, you pay $230). What is the effective annual interest rate for this loan?  (Assume 26 bi-weekly periods per year.) The effective annual interest rate is ______%. (Round to two decimal places.)