Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. what is the effective annual rate (ear) of a mo

1. What is the effective annual rate (EAR) of a mortgage that is advertised at...

50.1K

Verified Solution

Question

Finance

1. What is the effective annual rate (EAR) of a mortgage that is advertised at 6.75% (APR) over the next twenty years and paid with quarterly payments? What is the effective annual rate (EAR) of the mortgage at 6.75% APR with quarterly payments?

2. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $15,000. The purchase will be financed with an interest rate of 9% loan over 8 years.

a. What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year) and weekly payments (52 per year)?

b. Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each year?

c. What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Calculate the derivative of the function 3x 9 4x 1 s x Step 1 Recall...

Advance Math
1.2K views

1. Determine each of the following set of vectors is linearly independent or dependent. (a) S1 =...

Biology
1.2K views

The below contains the actual data on COVID-19 cases in Ghana from 1st April, 2020 to...

Civil Engineering
1.2K views

LO1 Describe the construction industry with reference to company structures and other activities P1 Explain how the...

General Management
1.2K views

Discuss in 5 - 6 paragraphs what is Benchmarking and how can you use it to...

Biology
1.2K views

Mark each statement as Truel False to classify them as characteristics of photosynthesis and cellular...

Physics
1.2K views

When we see an object the image formed on th retina is 1 real 3...

Accounting
1.2K views

Which of the following taxable entities can a corporation elect to be classified as under...

Accounting
1.2K views

READ THE SCENARIO BELOW AND ANSWER THE QUESTIONS THAT FOLLOW. The ABC International Bank...

Finance
1.2K views

Consider the following information Rate of Return if State Occurs State of Economy Boom Good...

Accounting
1.2K views

6. Roland Co. began a construction project in 2021 with a contract price of $150...

Accounting
1.2K views

Powers Corporation had accounts receivable of $90,000 at the beginning the year and $100,000 at...