Compute the effective annual interest rates credit company

Reference no: EM13686719

First Bank is sending university alumni an invitation to obtain a credit card, with the name of their university written on it, for a nominal 9.9 percent interest per year after 6 months of 0 percent interest. Interest is compounded monthly, IF you fail to make the minimum payment in any month, your interest rate could increase (with-out notice) to a nominal 19.99 percent per year. Compute the effective annual interest rates the credit company is charging in both cases

Reference no: EM13686719

Questions Cloud

Construct a frequency and percent frequency distribution : Dividend yield is the annual dividend paid by a company expressed as a percentage of the price of the stock (Dividend/Stock Price X 100). Construct a frequency distribution and percent frequency distribution.

Putting the most drag on the current economic recovery : Name two factors which you feel are driving the current (albeit sluggish) recovery. Describe whether or not you feel these factors will continue to exert a positive influence on GDP moving forward. Similarly, name two factors which you feel are putti..

What was the price after the tax hike : What was the price after the tax hike? What was the price elasticity of demand? What was the (average) percentage increase in price?

Group that determines the start and end dates to recessions : What is the group that determines the start and end dates to recessions? What indicators do they study to make these chronological decisions?

Compute the effective annual interest rates credit company : First Bank is sending university alumni an invitation to obtain a credit card, with the name of their university written on it, for a nominal 9.9 percent interest per year after 6 months of 0 percent interest. Interest is compounded monthly, IF you f..

How do you think your firm can increase its market power : Some firms have a large share of the market while others are just starting. A firm can often create a brand name which gives them market power. Market power is defined as the ability to raise prices without losing all demand. How do you think your fi..

Business management essay : Business management essay

What interest rate per month are they charging : A local finance company will loan $10000 to a homeowner. It is to be repaid in 24 monthly payments of $499 each. The first payment is due 30 days after the $10000 is received. What interest rate per month are they charging?

Distinguish between the systematic and the nonsystematic : Distinguish between the systematic and the nonsystematic portions of the total risk of an asset. Explain why risk averters holding a risky security should receive an expected return above the risk free rate that is in proportion only to systema..

User Account

All Pages