What is the difference in the effective annual rates charged

Reference no: EM13292501

Ana's Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. Rima's Bank offers to lend you the $50,000, but it will charge 6.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?

Reference no: EM13292501

Questions Cloud

Calculate d and the resistance per unit area of the sheet : A piece of wave guide WG16 operating at 10GHz is used to make a wave guide termination by placing a thin resistive sheet at a distance 'd' from the short circuit. Calculate 'd' and the resistance per unit area of the sheet.

What is the inflation premium on five-year bonds : The maturity risk premium for all bonds is found with the formula MRP = (t - 1) x 0.1%, where t = number of years to maturity. What is the inflation premium (IP) on five-year bonds?

What power is this battery supplying : A battery has an emf of 7.5 V and 16 A of current flows through it. What power is this battery supplying

Dimethyl mercury made in the environment due to pollution : Are certain organometals only made in the lab and not made through natural processes (made in the environment due to pollution)

What is the difference in the effective annual rates charged : Rima's Bank offers to lend you the $50,000, but it will charge 6.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?

Find the electric potential energy of this configuration : Two charged particles, q1 = ?2.50×10?3 C and q2 = +3.550e-3 C, are separated by a distance of 5.00 cm. find the electric potential energy of this configuration

Calculate value of inventory listed on firm balance sheet : Calculate the value of inventory listed on the firm's balance sheet. (Enter your answer in millions to 2 decimal places.

What does warren buffett seem to fear most about financial : In his 2002 letter to shareholders, what does Warren Buffett seem to fear most about financial derivatives?

Determine the magnetic field inside the solenoid : A solenoid 85.0 cm long has a cross-sectional area of 22.0 cm2. It has 1000 turns of wire, and is carrying a current of 6.60 A. What is the magnetic field inside the solenoid

User Account

All Pages