Business
Business, 13.02.2020 20:02, raquelwilliams6912

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 6.60%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity?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 14%. But the bank is compounding daily. What is the effective interest rate that Rahul would pay for the loan? a. 15.145% b. 15.024% c. 14.902% d. 15.207%Another bank is also offering favorable terms, so Rahul decides to take a loan of $16,000 from this bank. He signs the loan contract at 14% compounded daily for six 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? a. $17, 159.90 b. $16, 816.70 c. $17, 760.50 d. $18, 189.49

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:30, AWFHayami
Juwana was turned down for a car loan by a local credit union she thought her credit was good what should her first step be
Answers: 1
image
Business, 22.06.2019 13:00, dolltan
Creation landscaping has 1,000 bonds outstanding that are selling for $1,280 each. the company also has 2,000 shares of preferred stock outstanding, currently priced at $27.20 a share. the common stock is priced at $37.00 a share and there are 28,000 shares outstanding. what is the weight of the debt as it relates to the firm's weighted average cost of capital?
Answers: 1
image
Business, 22.06.2019 17:30, Jermlew
Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?
Answers: 1
image
Business, 23.06.2019 00:30, HottheadAnthony7234
Shelly bought a house five years ago for $150,000 and obtained an 80% loan. now the home is worth $140,000 and her loan balance has been reduced by $12,000. what is shelly's current equity?
Answers: 3
Do you know the correct answer?
The number of compounding periods in one year is called compounding frequency. The compounding frequ...

Questions in other subjects:

Konu
Physics, 30.11.2020 20:10
Konu
Mathematics, 30.11.2020 20:10
Konu
Mathematics, 30.11.2020 20:10