Which loan has the lowest effective annual rate

Reference no: EM13270887

Last National Bank is offering you a loan at 10%; payments on the loan are to be made monthly. Credit Union is offering you a loan where payments are to be made semi-annually; the rate on the loan is also 10%. Local Bank down the street is also offering a loan at 10% where the payments are made quarterly. Which loan has the lowest effective annual rate?

Last National Bank's loan
Local Bank's loan
Credit Union's loan
All of the loans will have the same effective annual rate.

Reference no: EM13270887

Questions Cloud

Discuss issues of justice-discrimination and civil rights : Discuss the issues of justice, discrimination, civil rights, feminism, etc - have you recently been discriminated against?

Explain how much snowaccumulates on lawn per hour : If your front lawn is 24.0 feet wide and 20.0 feet long, and each square foot of lawn accumulates 1250 new snow flakes every minute, how much snow (in kilograms) accumulates on your lawn per hour

Explain how likely is it that the two liquids are identical : If you measure the refractive indices of two liquids and they are within 0.0001 units from eachother, how likely is it that the two liquids are identical

What is king furniture break-even output level : Fixed advertising expenses equal $100,000 per year. Each table sells for $500. What is King Furniture's break-even output level?

Which loan has the lowest effective annual rate : Local Bank down the street is also offering a loan at 10% where the payments are made quarterly. Which loan has the lowest effective annual rate?

Define the concentration of medication in the blood declines : After a dose, the concentration of medication in the blood declines due to metabolic processes. The half-life of a medication is the time required after an initial dosage for the concentration to be reduced by one-half. A common model for this pro..

What are the advantages blades could gain : What long-range plans other than establishment of a subsidiary in Thailand are an option for Blades and may be more suitable for the company?

What average force did the mitt exert on the ball : In a baseball game, the catcher stops a 35 m/s pitch. How much net work is done on the baseball as it is caught? what average force did the mitt exert on the ball

Explain how many seconds would it take to swim : The men's world record for swimming 1500.0 m in a long course pool (as of 2007) is 14 min 34.56 s. At this rate, how many seconds would it take to swim 0.850 miles? (1 mi = 1609 m.)

User Account

All Pages