Can you please explain the correct answers of these questions? Correct answers are the ones with the blue arrow. Ty
Posted: Sun Jun 05, 2022 10:48 am
Can you please explain the correct answers of these questions?
Correct answers are the ones with the blue arrow. Ty
A family wants to purchase a certificate of deposit (CD) for a down payment on a house. One bank quotes an annual percentage rate (APR) of 6.5% with daily compounding. What is the effective annual rate (EAR) of this CD? 6.64% 6.72% 6.55% 6.68%
Eventually the family purchases a home for $310,000 and lives there for 14 years, at which point they sell the home for $540,000. What was the effective annual rate (EAR) of the home's price appreciation? In other words, what was the return on investment? 3.83% 4.36% 4.16% 4.04%
Correct answers are the ones with the blue arrow. Ty
- Can You Please Explain The Correct Answers Of These Questions Correct Answers Are The Ones With The Blue Arrow Ty 1 (207.66 KiB) Viewed 45 times
Eventually the family purchases a home for $310,000 and lives there for 14 years, at which point they sell the home for $540,000. What was the effective annual rate (EAR) of the home's price appreciation? In other words, what was the return on investment? 3.83% 4.36% 4.16% 4.04%