Under what conditions would the simple interest rate, or APR (remember rSIMPLE APR), equal the effective annual rate, rEAR?
Answer to relevant QuestionsWhat is an amortized loan? What is an amortization schedule and how is it used?Find the future value of the following ordinary annuities:a. $400 per year for 10 years at 10 percentb. $200 per year for five years at 5 percentYour broker offers to sell you a note for $13,250 that will pay $2,345.05 per year for 10 years. If you buy the note, what rate of interest (to the closest percent) will you be earning?Find the amount to which $500 will grow in five years under each of the following conditions:a. 12 percent compounded annuallyb. 12 percent compounded semiannuallyc. 12 percent compounded quarterlyd. 12 percent compounded ...Find the interest rates, or rates of return, on each of the following:a. You borrow $700 and promise to pay back $749 at the end of one year.b. You lend $700 and receive a promise to be paid $749 at the end of one year.c. ...
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