First National Bank charges 13.1 percent compounded monthly on its business loans. First United Bank charges 13.4
Question:
First National Bank charges 13.1 percent compounded monthly on its business loans. First United Bank charges 13.4 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
For discrete compounding to find the EAR we use the equation EAR 1 APR ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Question Posted:
Students also viewed these Business questions
-
Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 17.1 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by...
-
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,250 monthly. The contract currently sells for $245,000. What is the monthly return on this investment vehicle? What is...
-
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $250 per month in a bond account. The return of the stock account is...
-
Joshua Tree Inc. reported that at the end of 2012 net accounts receivable of 2,050 (the net value at the end of 2011 was 1,090). Their allowance for doubtful accounts at the end of 2012 was 150 (the...
-
Match each type of matrix with all these descriptions that could fit: (i) Can be multiplied by its transpose to make a 1 1 matrix, (ii) Is similar to the 3 3 matrix of all zeros, (iii) Can...
-
Use the binomial theorem to expand each binomial. (2p - q) 2
-
A Pepsi promotion encouraged consumers to collect Pepsi points and redeem them for merchandise. If they did not have quite enough points for the prize they wanted, they could buy additional points...
-
Vulcan Companys contribution format income statement for June is given below: Management is disappointed with the companys performance and is wondering what can be done to improve profits. By...
-
Calculate the magnitude of the force on the charge q, given that the square is 10.0 cm on a side and q 9a9b = +7.46 C and qc = qa = -7.46 C. = 2.00 C, given that N
-
Green Grass, Inc. just ran out of stock and suddenly has two emergency orders for grass seed blends: one is for 1500 pounds of normal, the other for 2300 pounds of special. At least each pound of...
-
Find the APR, or stated rate, in each of the following cases: Number of Times Compounded Semiannually Monthly Effective Rate (EAR) Stated Rate (APR) 11.1% 19.6 Weekly 10.5 8.4 Infinite
-
What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually?
-
The 20-kg disk is spinning about its center at s = 20 rad/s while the supporting axle is rotating at y = 6 rad/s. Determine the gyroscopic moment caused by the force reactions which the pin A...
-
Explain why a monopolistically competitive firm should be operating below the minimum efficient scale.
-
Facts: Elon Musk and Shelon Musk (not related, just a weird coincidence) are the two individual shareholders of Talker, Inc. ("TALKER"), a Delaware corporation that operates a social media platform...
-
Do you think that NGOs provide a net benefit to international society or not? Provide examples to support your argument.
-
Suppose that firms production function is Q=min {2K, 4L}, and r=8$ and w=16$. Find the firms long-run total cost and average cost in terms of output.
-
1.Explain how permanent increase in national real money demand functions affects real and nominal exchange rates in the long run. 2.A new government is elected and announces that once it is...
-
1. What is Huan Kwo's advice to student groups? 2. Are teaser rates unique to student credit cards? 3. Should you get a secured credit card? Why or why not?
-
Construct a 4 x 25 design confounded in two blocks of 16 observations each. Outline the analysis of variance for this design.
-
Sustainable Growth assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 1.90 Profit margin= 7.6% Equity multiplier = 1.40 Payout ratio = 40%
-
Full-Capacity Sales Seaweed Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $610,000. How fast can sales grow before any new fixed assets are needed?
-
Fixed Assets and Capacity Usage For the company in the previous problem, suppose fixed assets are $470,000 and Sales are projected to grow to $710,000. How much in new fixed assets are required to...
-
A function is given. r(t) = 5 - t; t = 5, t = 10 (a) Determine the net change between the given values of the variable. (b) Determine the average rate of change between the given values of the...
-
Why are certain functional dependencies called trivial functional dependencies? Explain what is meant by repetition of information and inability to represent information. Explain why each of these...
-
When is a table in BCNF? Explain what this means and provide a specific example? What is a surrogate key, and when should you use one? Give specific examples ? What is normalization? Why is it...
Study smarter with the SolutionInn App