What is the loans effective annual rate

Assignment Help Financial Management
Reference no: EM131504262

A loan is offered with monthly payments and a 9.50 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 %

Reference no: EM131504262

Questions Cloud

How does the cash cycle affect the ultimate value : How does the cash cycle affect the ultimate value? What steps would you take to manage the cash cycle? Why?
Evaluating two different silicon wafer milling machines : You are evaluating two different silicon wafer milling machines. the Tehron I cost $213,000, has a three-year life, and has pretax operating costs of $54,000 pe
What is the value of a share of common stock today : what is the value of a share of common stock today?
What is formula to compute the yield to maturity : What is the formula to compute the yield to Maturity of this bond purchase for Bill?
What is the loans effective annual rate : A loan is offered with monthly payments and a 9.50 percent APR. What’s the loan’s effective annual rate (EAR)?
What is the value of a share of preferred stock : What is the value of a share of preferred stock that promises to pay $2.37 every year,
Compute the present value of interest rate : Compute the present value of a $4,500 deposit in year 3 and another $4,000 deposit at the end of year 6 using an 9 percent interest rate.
Compute future value : Compute the future value of $2,000 compounded annually for 10 years at 4 percent. Compute future value of $2,000 compounded annually for 10 years at 10 percent.
What would be third year future value : What would be the third year future value?

Reviews

Write a Review

Financial Management Questions & Answers

  What is your recommendation assuming a discount rate

What is your recommendation assuming a 9% discount rate?

  Accumulated depreciation through the date of sale totaling

Hawthorne Company sold an old computer for $3,000 cash. The computer cost $45,000 and had accumulated depreciation through the date of sale totaling $42,000. The company will recognize:

  Company would be willing to pay for the project

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.88 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum initial cost the co..

  What is your low target stock price over the next year

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock p..

  Describe the target capital structure

The last dividend paid by Marquette Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its ..

  Would you expect the interest rates on the bonds

Would you expect the interest rates on these bonds to be higher or lower than the interest rates on comparable municipal bonds? Briefly explain.

  Amounts are to be debited and which are to be credited

identify which accounts and amounts are to be debited and which are to be credited.

  What is the NPV of the project at Stage

At Stage 2 of the decision tree it shows that if a project is successful, the payoff will be $53,000 with a 2/3 chance of occurrence. There is also the 1/3 chance of a −$24,000 payoff. The cost of getting to Stage 2 (1 year out) is $24,000. The cost ..

  Amount of the initial cash flow for expansion project

Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include awnings. The expansion would require the use of land the firm purchased three years ago at a cost of $142,000 that is currently valued at $137,500. Wh..

  1 when you purchase a stock you expect to receive dividends

1 when you purchase a stock you expect to receive dividends plus capital gains. not all stocks pay dividends

  How much of this judgment would the insurance cover

Becky Fenton has 30/60/20 automobile insurance coverage. If two other people are awarded $55,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

  How small business can recruit qualified employees

How small Business can recruit qualified Employees? Suggest any 3 Methods. Prepare an essay on Motivation Theories. Explain any 6 theories.

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