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Author Question: East Coast Bank offers to lend you $27,000 at a nominal rate of8.5%, compounded monthly. The loan ... (Read 10 times)

amymoore

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Question 1

By law, credit card issuers must print the annual percentage rate (APR) on their monthly statements. If the APR is stated to be24%, with interest paid monthly, what is the card’s EFF percentage?

26.82%


27.56%


28.54%


29.73%



Question 2

East Coast Bank offers to lend you $27,000 at a nominal rate of8.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Midwest Bank also offers to lend you the $27,000, but it will charge an annual rate of9.3%, with no interest due until the end of the year. What is the difference in the effective annual rates charged by the two banks?

0.39%


0.46%


0.64%


0.54%



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Marked as best answer by amymoore on Aug 7, 2023

FireandIce

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amymoore

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Reply 2 on: Aug 7, 2023
:D TYSM


peter

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Reply 3 on: Yesterday
Excellent

 

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