help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / What is the effective two-Near rate if a bank charges you - !*-too annualIN compounded quarterly ( A PR )  a

What is the effective two-Near rate if a bank charges you - !*-too annualIN compounded quarterly ( A PR )  a

Finance

What is the effective two-Near rate if a bank charges you - !*-too annualIN compounded quarterly ( A PR ) 
a. 7.98% b. 7.95% c. 7.86% d. 7.79% e. Different Number (write down the number) 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of Effective two year Rate:

Effective Two Year Rate = (1+i/n)^n -1

Here,

i = APR = 7.64%

n = 4 (compounded quarterly)

 

Effective Two Year Rate = (1+7.64%/4)^4 - 1 = 7.86%

So, the correct option is C "7.86%".

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)