A bank advertises mortgages at 12% com-pounded continuously. What is the effective annual interest? (a) 12.36% (b)

Question:

A bank advertises mortgages at 12% com-pounded continuously. What is the effective annual interest?
(a) 12.36%

(b) 12.55%

(d) 12.68%

(e) 12.00%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

See More Books

Question Posted: Dec 03, 2018 12:42 PM

See More Questions

Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a)...
A loan company offers money at 1.95% per month compounded monthly. (a) What is the nominal interest rate? (b) What is the effective annual interest rate? (c) How many years will it take an investment...
A large bank has increased its annual percentage rate (APR) on credit cards to 30%. This move was necessary because of the "additional risks" faced by the bank in a weak economy. If monthly...
Refer to the information in Exercise 16-11. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. IKIBAN INC. Comparatlve Balance Sheets June 30, 2017 and...
Take a look at Table 21-1. Suppose that you are planning your retirement. The appropriate interest rate for computing the present values of future dollars to be received is 8 percent, and you plan to...
Hampton Corporation's statement of financial position at December 31, 2017, is presented below. During 2018, the following transactions occurred. 1. Hampton issued 500 shares of $2.80 cumulative...
Describe normal flow, sub-flow, and alternate flow. How do they differ?
The following tasks are to be performed on an assembly line: The workday is seven hours long. Demand for completed product is 750 per day. a. Find the cycle time required to produce 750 units per...
The management of Elite Limited is struggling to understand changes in their financial performance and the trends emerging within their accounting data. Hence, the company would like to know about...
The plant capacity of a 3-phase generating station consists of two 8 MVA generators of reactance 145% each and one 4 MVA generator of reactance 95%. These are connected to a common bus-bar from which...
On a $200,000, 30-year fixed mortgage, the monthly payment will be approximately how much when the nominal interest rate on the mortgage is 4.2%? (a) $568 (b) $980 (c) $918 (d) $1,000 (e) $895
The effective annual interest rate is given to be 19.2%. What is the nominal interest rate per year (r) if continuous compounding is being used? Choose the closest answer below. (a) 19.83% (b) 18.55%...
How will Taiwanese company Hon Hai, better known as Foxconn Technology Group, which makes personal computers and smartphones for brands such as Apple, Dell, and Huawei, continue to prosper in the...
1. Solve the double inequality below. Then graph the solution set on the real number line. -81+3(x-2) < 13
If f(x) = x + 3 and g(x) = x + 8x + 15. Determine an equation for y = f(x) * g(x)
17-x, 2 for x 0 Let f(x) = Find each limit. 17+x, for x>0 (A) lim f(x) (B) lim f(x) x-0 (C) lim f(x) x-0 (D) f(0)
The technical support call centre for a software company has a mean wait time of 210 s, with a standard deviation of 40 s. The management team wants to continue to improve customer satisfaction by...
Q1) Determine whether the roots of the each quadratic are real or nonreal and whether they are equal or unequal. (5 marks) a) 2x+3x-2=0 b) 4x+4x+1=0 Q2) Solve for X by factoring: 3x(x-3) + 22 = 2x +...
Two binary symmetrical channels are in cascade, as shown in Figure 12.45. Determine the capacity of each channel. The overall system with inputs x 1 and x 2 and out puts z 1 and z 2 can be...
Information graphics, also called infographics, are wildly popular, especially in online environments. Why do you think infographics continue to receive so much attention? How could infographics be...
Fred wants to set aside a fixed percentage of his salary to buy a new car at the end of five years from now. The car costs $15,000 now, and its price is expected to increase at the inflation rate of...
A large corporation's electricity bill amounts to $400 million. During the next 10 years, electricity usage is expected to increase by 75%, and the estimated electricity bill 10 years hence has been...
A university's budget amounts to $100,000 million. Over the next 10 years, the budget is expected to increase by 50% as the result of an expansion program. The estimated budget ten years hence is...
1. What is team velocity and how does it impact the development of a project? 2. What is the purpose of SCRUM meetings, and how can one best prepare to take part in it?
Lew's market invested in project that returned 16.67 percent during a period when inflation averaged 3.26 percent. What real rate of return did Lew earn on its project? Explain in Detail?
Identify the major topographic features of ocean basins, and state how they are related to plate tectonics. The Himalaya and the Alps are said to be the graveyards of ancient oceans. Why?

A bank advertises mortgages at 12% com-pounded continuously. What is the effective annual interest? (a) 12.36% (b)

Question:

Step by Step Answer:

r 12 i e 012 1 ...View the full answer

Engineering Economy

Students also viewed these Business questions