Explain how to compare the effective annual rates

Assignment Help Finance Basics
Reference no: EM13328865

First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compounded semiannually. As a potential borrower, you decide to compare their effective annual rates. First National Bank's business loans have an EAR of percent, whereas First United Bank's loans have an EAR of percent.

Reference no: EM13328865

Questions Cloud

What is the persentage of manganese in the steel : A 1.00 g sample of a manganese steel is dissolved, oxidized to permanganate, and diluted to 500 mL. Using a 1.00 cm optical cell, the absorbance measured is 0.500. What is the % manganese in the steel
Calculate the energy density of the magnetic field : A solenoid that is 111 cm long has a cross-sectional area of 13.8 cm2. There are 958 turns of wire carrying a current of 7.62 A. Calculate the energy density of the magnetic field inside the solenoid
What is the moment of inertia of the molecule : The rotational spectrum of the HCl molecule contains lines with wavelengths of 0.0604, 0.0690 ,0.0804 ,0.0964 , and 0.1204 mm. What is the moment of inertia of the molecule
A company operates plants in both the unites states : A company operates plants in both the unites states(where capital is relatively cheap and labor relatively expensive) and mexico(where labor is relatively cheap and capital is relatively expensive).
Explain how to compare the effective annual rates : As a potential borrower, you decide to compare their effective annual rates. First National Bank's business loans have an EAR of percent, whereas First United Bank's loans have an EAR of percent.
Explain components most accurately described as cofactors : Are the following components most accurately described as cofactors, coenzymes, or neither? Fe2+, FAD, metal ion, CoQ, Lipase, Biotin
What is the resistivity of the wire : You apply a potential difference of 4.50 V between the ends of a wire that is 2.50 m in length and 0.654 mm in radius. What is the resistivity of the wire
Calculate the drift velocity of electrons in the wire : An 18-gauge copper wire (diameter 1.02 mm) carries a current with a current density of 1.60×106A/m2. Calculate the drift velocity of electrons in the wire
Explain interaction between carson company and rimsa savings : Rimsa Savings is a savings institution that provided Carson Company with a mortgage for its office building. Rimsa recently offered to refinance the mortgage if Carson Company will change to a fixed-rate loan from an adjustable-rate loan.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the portfolio weight of stock a

A portfolio has 70 shares of Stock A that sell for $39 per share and 110 shares of Stock B that sell for $33 per share.

  Which of the following are prohibited transactions

Bob, a covered participant of the profit sharing plan, borrows $5,000 from his account balance to pay for his first semester in graduate school.

  Cost of equity Dcf method and capm method

In regards to the INDITEX company: Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method.

  What is the value of the levered firm

The tax rate is 34 percent and the current cost of equity is 17.2 percent. What is the value of the levered firm?

  What is the future value

You put $1,000 in an investment account today which will earn 7% over the next 20 years, what is the future value?

  Managing the firms liabilities

Financial managers evaluating decision options or potential actions must consider and the financial manager may be responsible for any of the following;

  How large is the face value of the loan

Your bank has agreed to grant you a discount loan with an APR of 5.25%. If you need $5,000 today, how large is the face value of the loan?

  Relevant governance or ethical issues

Describe any relevant governance or ethical issues the M&A activity faced during its formative term? Discuss specifics and how the issue was handled.

  What should be the bid price per carton on this project

UAC would also need an initial investment in Net Working Capital of $75,000 at the begining of this project. UAC has a cost of capital of 16% and a tax rate of 35%. What should be the bid price per carton on this project?

  Fixed costs and other financial concepts

Consumers to Live Theaters, can be divided into 2-groups: seniors and everyone else. The inverse demand curves for each of 2-groups are given below.

  How much of the insurance premium should be allocated

Property insurance on the building is $9,000 per year and will not change because of the new activity. How much of the insurance premium should be allocated to the new product line?

  Find the ex-dividend date

Drew Financial Associates currently pays a quarterly dividend of fifty cents per share. This quarter's dividend will be paid to stockholders of record on Friday, February 22, 2007.

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