Calculate the effective annual interest rates

Assignment Help Microeconomics

Reference no: EM132156868

Question: First Bank is sending alumni of universities an invitation to obtain a credit card, with the name of their university written on it, for a nominal 9.9% interest per year after 6 months of 0% interest. These interest rates apply to the outstanding debt if not paid by a specified date each month, and hence interest is compounded monthly. If you fail to make the minimum payment in any month, your interest rate could increase (without notice) to a nominal 19.99% per year. Calculate the effective annual interest rates the credit company is charging in both cases Contributed by D. P. Loucks, Cornell University.

Reference no: EM132156868

Questions Cloud

How these cultural groups influence your communication : Write an expository essay explaining how these cultural groups influence your communication with those who may be outside of your co-cultures.

How much is the investment worth now : Jim Duggan made an investment of $10,000 in a savings account10 years ago. This account paid interest of 51/2% for the first 4 years and 61/2% interest.

Impossible for an insurance company : Thus, it is almost impossible for an insurance company to set the level of premiums for a cyber insurance policy. Do you agree?

African Burial Ground-An American Discovery : African Burial Ground: An American Discovery (1994) Ossie Davids End Ruby Dee. what in your opinion is the "message" of this documentary film?

Calculate the effective annual interest rates : First Bank is sending alumni of universities an invitation to obtain a credit card, with the name of their university written on it, for a nominal 9.9%

Compute the tax amount based on a sales tax : After the input loop, compute the tax amount based on an 8.8% sales tax. Then, compute and display the total cost.

Type of compensation will each classification of employee : What type of compensation will each classification of employee receive for their work?

How much traffic will be expected : Traffic at a certain intersection is 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 5% per year.

Which techniques of neutralization do these justifications : List possible justifications such students might give for their cheating behavior. Which techniques of neutralization do these justifications illustrate?

User Account

All Pages