Annual interest rate and the effective annual interest rate

Assignment Help Business Economics

Reference no: EM131807733

A bank is offering to sell 6-month certificates of deposit for $9500. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Based on a 6-month interest period, compute the nominal annual interest rate and the effective annual interest rate.

Reference no: EM131807733

Questions Cloud

Discuss paid the semiannual interest on the bonds : Accrued $1,948 of interest on the installment note. The interest is payable on the date of the next installment note payment

Describe which financing option you think is the best option : Describe which financing option you think is the best option for SunsTruck to pursue given Shaun's constraints. Explain the rationale for your decision.

Review a survey of registered voters : A local TV station claims that 60% of people support Candidate A, 30% support Candidate B, and 10% support Candidate C. A survey of 500 registered voters.

How much is available to pay towards the bank loan : what is the amount needed by the bank, or how much is available to pay towards the bank loan

Annual interest rate and the effective annual interest rate : Based on a 6-month interest period, compute the nominal annual interest rate and the effective annual interest rate.

Identify key competencies of lazada : Identify key competencies of Lazada and justify how the company capitalises its strengths to gain its competitive advantage in Singapore.

What effective annual interest rate did he receive : Mr. Sansome receive on his investment in stock? What effective annual interest rate did he receive?

Describe accounting treatment that appears to be appropriate : Evaluate whether finding out about your client's bankruptcy indicates that you have a change in accounting estimate or an error in previously issued financial

What effective annual interest rate : Assuming a 20-day compounding period, the 2% deduction for prompt paymentis equivalent to what effective annual interest rate?

User Account

All Pages