APR and EAR, Financial Management

Assume a bank charges a 15.5% APR (annual percentage rate) on credit card holder compounds quarterly. What EAR (effective annual rate) is the bank is charging? What if they change compounding to bi-monthly? Compare the result from the bank perspective and the credit card holder perspective (your calculation should be set to 4 decimal places)
Posted Date: 6/11/2015 1:38:53 PM | Location : United States







Related Discussions:- APR and EAR, Assignment Help, Ask Question on APR and EAR, Get Answer, Expert's Help, APR and EAR Discussions

Write discussion on APR and EAR
Your posts are moderated
Related Questions
Venture capitalist is an organization in the practice of providing capital to fledgling organization with high growth potential in exchange for equity stakes and/or management cont

Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci

define matching principle of working capital financing

Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer:  The adjustment mechanism within the gold standar

Illustration  Find out the value of zero-coupon bond when maturity value is Rs.1,00,000, discounting rate is 12%, and the period is 25.  Then,

External Financing with Same Cost of Capital and Same Proportions as Existing: If a firm raises new capital funds in the same proportion as at present and at the same specific cos

How many types of segments in the mutual fund industry? There are two segments into the mutual fund industry: long-term funds and short-term funds. In Long-term funds bond fund

What is Business risk It is related to response of the firm's earnings before taxes andinterest, or operating profits, to changes in sales. When cost of capital is used to eval

The management of Nelson plc wish to estimate their firm's equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

What is risk aversion? If common stockholders are risk averse, how do you explain the fact that they often invest in very risky companies? Risk aversion is the trend to avoid add