The going rate on your student loan is 8% annual percentage rate (APR), why is your effective

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

Question:

The going rate on your student loan is 8% annual percentage rate (APR), why is your effective annual rate on your loan always larger than 8%? Please explain why you might prefer effective annual rate (EAR) over APR.

Posted Date: May 11, 2024 05:25 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...
Determine A in the indicated figures. Fig. 2.40 (a) A 84 (a) 40 B
PC-Express is a computer retail store that sells two kinds of microcomputers: desktops and laptops. The company earns $600 on each desktop computer it sells and $900 on each laptop. The...
What must be included in a separate statement?
A major city in the northeast wants to establish a central transportation station from which visitors can ride buses to four historic landmarks. The city is arranged in a grid, or block, structure...
Use your knowledge of production costs to help Frank better run his flower shop. Frank's Flowerstop Flower Shop Boquets of 1 dozen long- Total Cost Fixed Cost stemmed roses Variable Cost Average...
What risks are associated with international supply chains? How can a firm mitigate these risks?
Your uncle has given you a bond that will pay $\$ 500$ at the end of each year forever into the future. If the market yield on this bond is $8.25 \%$, how much is it worth today?
What monthly payment would a college senior make to pay off a used car loan of $\$ 2,000$ at $12 \%$ by the end of the year?
How many years will it take for your savings account to accumulate $\$ 1,000,000$ if it pays $4 \%$ interest per annum compounded semiannually and you deposit $\$ 10,000$ every 6 -months at the end...
A tattoo shop has the following revenue stream over a 5 -year period: $\$ 9,000, \$ 17,000, \$ 19,000, \$ 11,000$, and $\$ 22,000$. What is the EUAW of this business (assume $\mathrm{i}=12 \%$ ).
A capital investment project involves the purchase of a 3-D soldering station for $\$ 15,000$, producing an annual net benefit of $\$ 2,250$. The system has an 8-year useful life with a salvage value...