Difference in the effective annual rates

Assignment Help Macroeconomics

Reference no: EM1370996

Bank A offers to lend $10,00 at a nominal rate of 7 percent, compounded monthly. The loan (principal plus interst) must be repaid at the end of the year. Bank B also offers to lend the $10,000, but it will charge 8%, with interest due at the end of theyear. What is the difference in the effective annual rates charged by the two banks?

If there is an excel formula for this I would appreciate to know it as well.

Reference no: EM1370996

Questions Cloud

Prepare an income statement and balance sheet : Give a brief written evaluation of Kissick Corporation 's results from operations for the year and its financial position at the end of the year.

Find the time taken to reach the window : If the ball was thrown from the street, when does it reach the street again after it passes by window on the way up.

Explain area that represents profit or loss this firm earn : On a single graph draw marginal cost curve, average total cost curve and average variable cost curve for a typical firm. Explain how area that represents profit or loss this firm will earn.

Write html page to enter city current temperature : Write HTML page that asks user to enter city current temperature and changes background color depending on that temperature.

Difference in the effective annual rates : Bank A offers to lend $10,00 at a nominal rate of 7 percent, compounded monthly. The loan must be repaid at the end of the year.

Advertising between competition and oligopoly : Consider some of products which are widely advertised on television. By what type of firm is each produced the perfectly competitive firm, an oligopolistic firm, or another kind of firm? How many major products can you think of that are not advert..

Explain how that influences marginal benefits : Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decision to purchase a house.

How numerous cubic centimeters of ice antarctica contain : A pendulum clock with a brass suspension system m is calibrated so that its period is 1s. at 11*C (degree Celsius). If the temperature increases to 44oC, by how much does period change.

Write sql statement which creates stored procedure : Write SQL statement which creates stored procedure with one int input parameter. Stored procedure selects supplierId field and total of all Count field values for each group of supplierId's from Part table.

User Account

All Pages