- Q1 An Interest Rate Of 21 Per Year Compounded Every 4 Months Is Equivalent To What Effective Rate Per Year Show Han 1 (107.78 KiB) Viewed 43 times
Q1: An interest rate of 21% per year, compounded every 4 months, is equivalent to what effective rate per year? Show hand and spreadsheet
solutions Q2: From the interest
statement 18% per year, compounded monthly, determine the values for interest period, compounding period, and compounding frequency. Q3: An interest rate of 21% per year, compounded every 4 months, is equivalent to what effective rate per year? Show hand and spreadsheet
solutions. Q4: Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a new job starting next week and expects a salary to start again in a couple of weeks. Since she is. little short on money to pay her rent, she decided to borrow $100 from a loan
company, which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan is made. What are the (a) nominal annual and (b) effective annual interest rates that she will pay on this loan? Q5: Many college students have Visa credit cards that carry an interest rate of "simple 24% per year" (that is, 2% per month). When the balance on such a card is $5000, the minimum payment is $110.25. (a) What is the amount of interest in the first payment? (b) How long will it take, in months, to pay off the balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card? *****