3b2

Question 2 (1 point)

What is the present value of the following annuity? $2,764 every half year at the beginning of the period for the next 12 years, discounted back to the present at 16.88 percent per year, compounded semiannually.

Round the answer to two decimal places.

Your Answer:

3c2

Question 2 (1 point)

A commercial bank will loan you $52,348 for 4 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 19.75 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

Your Answer:

3e2

Question 2 (1 point)

You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 6.31 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

Question 2 options: