A department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. a. What is the nominal interest (annual percentage) rate for this credit card? b. What is the effective annual interest rate?
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A: Equivalent nominal rate of interest = 1.5 % per month * 12 months = 18 % Equivalent effective rate…
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A: Given: P=500 A=40 n=16 i=?
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A: Given, Loan amount = 9,000 Time = 90 days Interest rate = 5%
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A: The rate of interest is the cost of borrowing money or the return for lending money.
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A: Given Borrowed amount P=280,000 Interest rate =1.5% compounded monthly. Time (n) = 48 months
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A: Introduction: The annual percentage rate (APR) is the yearly interest earned by an amount charged to…
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A: Nominal interest rate and the effective annual rate are calculated as follows:-
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A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate
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Q: What is the effective annual interest rate?
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A: a. Effective annual interest rate = 1+inn-1=1+5%22-1=1+0.0522-1=1.0252-1=1.050625-1=0.050625=5.0625%…
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A: Interest paid after 5 years= 115438.789
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- You borrowed an amount of $15,000 and paid it $20,223 in 3 years. If the interest rate was compounded monthly, what is the nominal interest rate?You borrow $500 from a family member and agree to pay it back in six months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after six months? How much is the interest?You can afford a $800 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How much of that money is interest?