What is the effective annual rate

Assignment Help Finance Basics
Reference no: EM132375462

Suppose your credit card issuer states that it charges a 20.50% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate?

Reference no: EM132375462

Questions Cloud

Compute the cash flows to investors from operating activity : Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)
How much interest would billy have to pay in a 30-day month : The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?
The cold war and us diplomacy : POL 300- Identify the cultural, economic, and political context of information resources, and interpret information in light of that context.
Lenders and the managers of the firm work : If the dividend were allowable, could the lenders and the managers of the firm work out a deal that would make both better off than in the outcome
What is the effective annual rate : Suppose your credit card issuer states that it charges a 20.50% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding.
Northwest utility company faces increasing needs : Northwest Utility Company faces increasing needs for capital. Fortunately, it has an Aa3 credit rating. The corporate tax rate is 30 percent.
Gogreen has made the following projections : The price for each unit in the first year will be AU$50,000. This price will increase each year by 5%.
What was the compounded average annual : What was the compounded average annual inflation rate during this period of time?
What is the price of the bond : Morgan Stanley has a 3-year, 4.9% bond with a yield to maturity of 4.03%.

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the high and low target stock prices

Stock Valuation and PE. In the previous problem, we assumed that the stock had a single stock price for the year.

  Find the value of the decedents gross estate

Assume decedent dies in 2006 and has interests in the following assets: $400,000 residence owned jointly with right of survivorship with her husband;

  The considerable number of accomplices

Pass Journal passages to close the books of the firm and show Realization Account, Bank Account, and the Capital Accounts of the considerable number of accomplices.

  What is the profit associated with the project carried out

a project selection committee is comparing two proposals to see which proposal it will support.proposal a is for a

  What is fortune star total asset turnover

Fortune Star Inc. has a net profit margin of 12%, an equity multiplier (i.e., asset to equity ratio) of 2, sales of $575,000 and a ROE of 17%.

  Question on stock repurchase

Beta Industries has a net income of $2,000,000 and it has $1,000,000 shares of common stock outstanding. The company's stock currently trades @$32 a share.

  Market on a risk-adjusted basis

If the risk-free rate is 5%, calculate and compare the Sharpe Ratio and the Treynor Index for both Your Portfolio and The Market. Did your portfolio beat the market on a risk-adjusted basis?

  What is the expected dividend per share

What is the expected dividend per share for each of the next 5 years?

  What is the effective annual rate as a percentage

The annual nominal rate is jm = 0.16pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 7.

  Calculate the market value of bond

Calculate the market value of this bond if investors are expecting a yield of 3% per year.

  What is the minimum stated interest rate

What is the minimum stated interest rate you should ask for from Acme in order to make you indifferent to switching?

  Evaluating a growing perpetuity product

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd