Question: 1 2 months ( a ) A loan is made for five years at a simple interest rate of 1 2 % per annum. What

12 months
(a) A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan?
(b) Consider an account governed by simple interest at the simple interest rate s. The effective rate of interest in the fifth year is given to be 0.045. Find s.
12 months (a) A loan is made for five years at

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

. (a) A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan? (b) Consider an account...

Q:

6. (a) A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan? (b) Consider an account...

Q:

A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan? Answer: 8.108%

Q:

A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan?

Q:

1. Fill in the blanks of each row with equivalent rates to the given one: d d(4) d (12) 8 (2) 10% i (1/4) 6% 2. A payment of $1000 is due at time 15 years. Between times 0 to 5 years, the annual...

Q:

TOPIC: SIMPLE INTEREST Answer the 10 following questions with a complete solutions. 1. 99:49-91?- Answer the following: Find the simple Interest on a loan of P65,000 if the loan is given at a rate of...

Q:

Topic: Business Mathematics. Answer the following questions. Thank you, so much. 1. 99:49-91?- Answer the following: Find the simple Interest on a loan of P65,000 if the loan is given at a rate of...

Q:

What is the effective interest rate for the rst year for a loan of $20,000 for three years if the interest is compounded quarterly at a rate of 12%? Instructions: Week 5 Individual Assignment Total...

Q:

10,11, and 13 are done already. 1.) Find the interest paid on a loan of $2,500 for three years at a simple interest rate of 11 % per year. 2.) Find the maturity value of a loan of $1.000 after two...

Q:

1-Find the interest paid on a loan of $2,400 for two years at a simple interest rate of 10% per year. 2-Find the maturity value of a loan of $600 after three years. The loan carries a simple interest...

Q:

1. (10 points) Coulomb's law states that the Electric field generated by par- ticle with charge Q at the origin is 1 Q E(r) = 4T 0 Show that this can be generated by taking E = -V where 1 Q P(r) :...

Q:

Financial accounting rules do not always match the tax treatment of transactions involving groups of U.S. corporations. List at least two areas where tax and accounting rules differ when groups of...

Q:

1 4 . The Dupont equation assesses a firm s ability to generate a good rate of return on equity by breaking down the drivers of a return on equity into these three components Group of answer choices...

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...