Suppose you need a bank loan to purchase your car. Bank A offers you 4% /year...
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Suppose you need a bank loan to purchase your car. Bank A offers you 4% /year compounded monthly and Bank B offers you 3%/year compounded weekly. Which loan should you take if you wish to pay the loan back in one year? You need to show your work to justify your answer. O a. Bank A O b. Bank B Calculate the present value of an annuity due which has payments of $1003 made semi-annually over the course of 5 years at a nominal interest rate of 5.5%/year. Calculate your final answer to two decimal places (ex. xxx.xx) Assume a simple interest loan has a maturity value equal to $5086.09, with a simple interest rate of 3.0% / year. If the loan is for 217 days, calculate the principal amount. Assume banker's interest in your calculation. Express your final answer as a decimal, rounded to two decimal places (ex. xxx.xx) Suppose you need a bank loan to purchase your car. Bank A offers you 4% /year compounded monthly and Bank B offers you 3%/year compounded weekly. Which loan should you take if you wish to pay the loan back in one year? You need to show your work to justify your answer. O a. Bank A O b. Bank B Calculate the present value of an annuity due which has payments of $1003 made semi-annually over the course of 5 years at a nominal interest rate of 5.5%/year. Calculate your final answer to two decimal places (ex. xxx.xx) Assume a simple interest loan has a maturity value equal to $5086.09, with a simple interest rate of 3.0% / year. If the loan is for 217 days, calculate the principal amount. Assume banker's interest in your calculation. Express your final answer as a decimal, rounded to two decimal places (ex. xxx.xx)
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To determine whether you should take the loan from Bank A or Bank B for your car purchase lets calculate the effective annual rates for each bank Bank ... View the full answer
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