What is the effective monthly interest rate for this loan

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Reference no: EM131896929

a)You make monthly payments on a loan. What is the effective monthly interest rate for this loan with a 10% nominal annual interest rate if the loan is compounded monthly? Enter your answer as a percentage (rounded to the nearest hundreth of a percent) between 0 and 100.

b)A certificate of deposit (CD) offers a daily rate of 0.01% compounded daily. What is the effective annual rate of interest? You can assume 365 days per year. You should express your answer as a percentage between 0 and 100 rounded to the nearest tenth of a percent.

c)"If you invest $2,000 every year in an account that pays 3.5% APR, compounded daily, how much will you have in the account at the end of 10 years? Assume you make the first deposit exactly one year from now, and you make a total of 10 deposits."

d)Republic Finance offers money at 0.87% per month compounded monthly. Assume Republic Finance changes to continuous compounding but decides to keep the ANNUAL NOMINAL INTEREST rate the same as with the monthly compounding. How many years will it take for an investment to quadruple with this continuous compounding? (Your answer can be a decimal.)

e)"To purchase a new car, you borrow $34,000 for 10 years at the rate of interest of 8.6% APR compounded monthly, and you make monthly car payments. How much interest do you pay on the 11th payment?"

f)"Suzan is considering buying a home for $256,000. If she makes a down payment of $78,000 and takes out a mortgage on the rest of the money at 6.28% compounded monthly for 19 years, what will be the interest for payment number 114? Assume she makes monthly payments.

g)"If the nominal interest rate is 9.1% compounded daily, what is the required quarterly payment to repay a loan of $22,000 in 10 years? Assume 91 days per quarter."

Reference no: EM131896929

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