What is the loan effective annual rate

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Reference no: EM131835281

1. A loan is offered with monthly payments and a 11.75 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

effective annual rate = ? %

2. Future Value

Given a 4 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,900, $2,100, $2,100, and $2,400, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

future value = ?

3. Future Value of Multiple Annuities

Assume that you contribute $280 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $560 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

future value of multiple annuities = ?

Reference no: EM131835281

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