Which is the effective annual rate

Assignment Help Finance Basics
Reference no: EM13263825

Your auto finance company is quoting you an Annual Percentage Rate (APR) of 8%. You are borrowing $45,000 and the payment is $845 per month. You will make monthly payments. Which is the Effective Annual Rate (EAR)?

Reference no: EM13263825

Questions Cloud

Calculate the mass of neptune : The planet Neptune has a satellite, Proteus, which travels in an orbit 1.180*10^8 m with a period of 1.12 days. Calculate the mass of Neptune
Calculate and display the volume of a cylinder : Your program should prompt the user to input the radius and height. The program should output the result with three digits after the decimal point. The output should include some explanatory text.
What was the rate of return on the funds : Your grandmother put $35,000 aside for you 13 years ago. Today, the account is worth $76,432.16. Assuming the money was invested with a daily compounding, what was the rate of return on the funds your grandmother saved?
What is the return on equity : High Mountain Foods has an equity multiplier of 1.55, an asset utilization rate of 1.1', and a profit margin of 7.5%. What is the return on equity?
Which is the effective annual rate : Your auto finance company is quoting you an Annual Percentage Rate (APR) of 8%. You are borrowing $45,000 and the payment is $845 per month. You will make monthly payments. Which is the Effective Annual Rate (EAR)?
Calculate the npv of each choice : The opportunity cost of capital is 10.3 percent. Calculate the NPV of each choice and suggest when should Predator sell the company?
Should business be concerned about more than profit : Should business be concerned about more than profit?
How large will your account balance be in 25 years : You are planning to make annual deposits of $6,210 into a retirement account that pays 8 percent interest compounded monthly. How large will your account balance be in 25 years?
Determine the shear modulus of the wood : A plank 2.00 cm thick and 12.9 cm wide is firmly attached to the railing of a ship by clamps so that the rest of the board extends 2.00 m horizontally over the sea below. find the shear modulus of the wood

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the ear of the credit

You just puchased $8700 of goods from your supplier with credit terms of 3/10, net 30. What is the EAR of the credit if you did not use the cash discount?

  To determine henkel corporate beta

To determine Henkel corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European household and Personal Care segment. To determine the OLS market beta, regress 10 years monthly returns against t..

  Important information of present value of growing perpetuity

What is present value of a growing perpetuity which makes payment of $100 in the first year, which thereafter grows at 3% per year? Has a discount rate of 7%

  Computation of npv using the given financial ratios

Computation of NPV using the given financial ratios and Show the adjustments for each problem individually and not a cumulative adjustment unless the question directs you to do so.

  Governmental fund statements

Suppose that a government will collect its sales taxes in sufficient time to satisfy available criterion, it would ordinarily recognize revenue from sales taxes in,

  Calculate the value of brooks operations

What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash blows Year 2 discounted back to Year 2.)

  Compute the weights for disney''s equity

Compute the weights for Disney's equity and debt based on the market value of equity and Disney's market value of debt, computed in step 5

  Organizational identification merger

Please critique the following article with  the literature review, methodology and state key findings.

  Compute the investments expected return

B. J. Orange Corporation is evaluating a security. One-year Treasury bills are currently paying 1.9%. Compute the investment's expected return and standard deviation.

  What is the percentage price change of these bonds

Bond J is a 3 percent coupon bond. Bond K is a 9 percent coupon bond. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 6 percent.

  Why do firms purchase other corporations

Research corporate acquisitions using your text, course materials, and Web resources and then answer the following questions:

  What would the wc before tax component cost of debt

WC inc has a $10,000,000 (face value) a 10 year bond issue selling for 99% of par that pays that pays an annual coupon of 9%. What would the WC's before tax component cost of debt?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd