Business, 21.06.2019 14:30, 24nelsoaddh

# Assume one bank offers you a nominal annual interest rate of 6% compounded daily while another bank offers you continuous compounding at a 5.9% nominal annual rate. you decide to deposit $1,000 with each bank. exactly two years later you withdraw your funds from both banks. what is the difference in your withdrawal amounts between the two banks?

Answers: 1

Business, 22.06.2019 09:40, ameliaduxha7

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.

Answers: 3

Business, 20.09.2019 17:10, ayeheavymetal

3. nonannual compounding period the number of compounding periods in one year is called compounding frequency. the compounding frequency affects both the present and future values of cash flows. an investor can invest money with a particular bank and earn a stated interest rate of 8.80%; however, interest will be compounded quarterly. what are the nominal, periodic, and effective interest rates for this investment opportunity? interest rates nominal rate periodic rate effective annual rate rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. he particularly likes his local bank because he is being offered a nominal rate of 8%. but the bank is compounding bimonthly (every two months). what is the effective interest rate that rahul would pay for the loan? 8.356% 8.271% 8.448% 8.149% another bank is also offering favorable terms, so rahul decides to take a loan of $14,000 from this bank. he signs the loan contract at 9% compounded daily for four months. based on a 365-day year, what is the total amount that rahul owes the bank at the end of the loan's term? (hint: to calculate the number of days, divide the number of months by 12 and multiply by 365.) $15,147.75 $14,137.90 $14,426.43 $14,714.96

Answers: 1

Business, 09.10.2019 16:20, diego4325

The number of compounding periods in one year is called compounding frequency. the compounding frequency affects both the present and future values of cash flows. an investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. what are the nominal, periodic, and effective interest rates for this investment opportunity? interest rates nominal rate periodic rate effective annual rate rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. he particularly likes his local bank because he is being offered a nominal rate of 4%. but the bank is compounding bimonthly (every two months). what is the effective interest rate that rahul would pay for the loan? 4.381% 3.973% 4.244% 4.067% another bank is also offering favorable terms, so rahul decides to take a loan of $12,000 from this bank. he signs the loan contract at 5% compounded daily for 12 months. based on a 365-day year, what is the total amount that rahul owes the bank at the end of the loan's term? (hint: to calculate the number of days, divide the number of months by 12 and multiply by 365.) $12,489.06 $13,372.12 $12,615.21 $13,245.97 grade it now save & continue continue without saving

Answers: 3

Business, 24.10.2019 17:43, kimjooin02

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? a. bank 2; 6.0% with monthly compounding. b. bank 4; 6.0% with quarterly compounding. c. bank 5; 6.0% with daily (365-day) compounding. d. bank 3; 6.0% with annual compounding. e. bank 1; 6.1% with annual compounding.

Answers: 3

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