Your credit card company recently raised the interest rate you're required to pay on overdue balances to 24.99% (expressed as an APR, or annual percentage rate). If you are required to make monthly payments on the account balance, what is the effective annual rate they are actually charging you?
Answer to relevant QuestionsWas IBM's stock price reaction to their October 2012 earnings announcement efficient? Explain your reasoning. You've been shopping for a car. You have $1000 for a down payment, and will need to finance the remainder of the purchase. You find something suitable at a local car dealer, and you think the sticker price of $17,000 is ...What is the present value of a perpetuity of $4000 per year if the appropriate discount rate is 11%? What is the present value of end-of-year cash flows of $2000 per year, with the first cash flow received three years from today and the last one 22 years from today? Use a discount rate of 8%. If you save $2400 a year into a 401(k) retirement plan (with deposits made in 12 equal monthly installments) for the next 20 years and earn an average rate of interest of 9% per year, how much will you have at the end of the ...
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