3. You have found three investment choices for a one-year deposit:10.0 % APR compounded monthly, 10.0% APR compounded annually, and 9.0% APR compounded daily. Compute the EAR for each investment choice.(Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.)

 

4. Suppose Capital One is advertising a 60-month, 5.99 %APR motorcycle loan. If you need to borrow$8,000to purchase your dream? Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.)

 

5. You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.375% (APR). How much do you owe on the mortgage today(Note: Be careful not to round any intermediate steps less than six decimal places.)

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3 To compute the Effective Annual Rate EAR for each investment choice we can use the formula EAR 1 APR nn 1 where APR is the Annual Percentage Rate an... View the full answer