Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the answer only suppose your credit card is

THE ANSWER ONLY Suppose your credit card issuer...

90.2K

Verified Solution

Question

Finance

THE ANSWER ONLY
image
image
image
Suppose your credit card issuer states that it charges a 22.00% nominal annual rate, but you must make monthly payments, which amounts to monthly, compounding. What is the effective annual rate? a. 28.50% b. 20.71% C. 24.36% d. 21.44% e. 24.85% Your uncle will sell you his bicycle shop for $220,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be? a. $4,242.45 b. $4,115.18 C. $3,563.66 d. $4,284.88 e. $3,181.84 Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $4,500. What interest rate would you earn if you bought this bond at the offer price? a. 3.43% b. 3.27% C. 3.10% d. 4.14% e. 4.80%

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