This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: PWC recently proposed to BMO to change the method of compounding interest on line of credit accounts ... (Read 117 times)

Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
on: Jun 6, 2019

Question 1

The PC financial is considering changing the method of compounding interest on line of credit accounts to daily compounding. If the current rate is 5.75% compounded quarterly, what nominal rate should PC Financial propose to maintain the same effective rate of interest?
◦ 5.719%
◦ 0.576%
◦ 1.6%
◦ 0.016%
◦ 4.61%

Question 2

PWC recently proposed to BMO to change the method of compounding interest on line of credit accounts to monthly compounding, as part of the marketing campaign. If the current rate is 2.5% compounded quarterly, what nominal rate should the PWC suggest to BMO executives to maintain the same effective rate of interest?
◦ 0.208%
◦ 2.5%
◦ 2.495%
◦ 2.75%
◦ 3.773%
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Pineapplelove6 on Jun 6, 2019

BAOCHAU2803

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 6, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 58% of students answer this correctly


Pineapplelove6

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Jun 6, 2019
Thanks


BAOCHAU2803

  • Sr. Member
  • ****
  • Posts: 316
Reply #3 on: Jun 6, 2019
Welcome :)


« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Free energy change during electron transport Free energy change during electron transport
Palpation of the Liver, Hook Method Palpation of the Liver, Hook Method
Injecting an IV push (bolus) medication; B, into a primary infusion line Injecting an IV push (bolus) medication; B, into a primary infusion line
the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M
How to calculate credit card interest when the interest is compounded How to calculate credit card interest when the interest is compounded
Offset Method Plot of Land Offset Method Plot of Land
Video: Cataract

For a complete list of videos, visit our video library