What is the effective annual interest rate

Assignment Help Macroeconomics
Reference no: EM13327013

A bank is offering $20,000 6-month CD's for $19,500. What is the nominal annual interest rate? What is the effective annual interest rate? please give both the answers in %.

Reference no: EM13327013

Questions Cloud

Cash collections from customers during the period : Corporation uses the indirect method to depict cash flows. Indicate where, if at all, interest paid on note would be classified on the statement of cash flows - what were the cash collections from customers during the period?
What coupon rate should the company set : What coupon rate should the company set on its new bonds if it wants them to sell at par?
Determine the compressor power : At a steady state, a well-insulated compressor takes in air at 60 degrees Fahrenheit, 14.2 lbf/in^2, Determine the compressor power
A vacuum oven for brazing small fittings : Emma runs a small factory that needs a vacuum oven for brazing small fittings. She can purchase the model she needs for $180,000 up front, or she can lease it for $4,200 per month. She can borrow at 7% APR, compounded monthly. Assuming that th..
What is the effective annual interest rate : A bank is offering $20,000 6-month CD's for $19,500. What is the nominal annual interest rate? What is the effective annual interest rate? please give both the answers in %.
Use the cyberattack scenario : Imagine that you occupy one of the following positions: the police chief, the city mayor, the bank's chief executive officer, the airport's director of security, or the hospital's chief executive officer.
What is the present value when the annual increase : A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years. If the interest rate is 8%, what is the present value when
Determine what is geometric return over the period : Your grandfather invested $1,000 in a stock 27 years ago. Currently the value of his account is $226,000. What is his geometric return over this period
Calculate the npv of the investment for 10 years : Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.20 million.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Is the response predominantly an income effect

Suppose that the cost of living increases, thereby reducing the purchasing power of your income. If your money wage doesn't increase, you may work more hours because of this cost-of-living increase. Is this response predominantly an income effect ..

  What are the differences among horizontal-vertical

Elucidate what are the differences among horizontal, vertical, and conglomerate mergers. Is one type preferable from the view of anti-trust policy.

  The publisher plans to sells the text to college

Eastman Publishing Company is considering publishing a paperback textbook on spreadsheet application for business. The fixed cost of manuscript preparation

  Own-price elasticity of demand for x box

Sherry was just rotated out as Microsoft's X-Box sales manager for the Canadian market. In Canada, the X-Box competes with Nintendo's GameCube.

  Intervention of government in market process in u.s

Explain why government regulation is needed, citing the major reasons for government Involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.

  Illustrate which of the following statements are examples

Illustrate which of the following statements are examples of positive economic analysis. Which are examples of normative analysis.

  Combine the two statements of second price auction

In classe, we showed that any player 10s strategy b0 1 > v1 is weakly dominated by strategy b1 = v1. Combine the above two statements, what conclusion can you draw Why this conclusion is relevant if we want to show (b1 = v2; b2 = v2) is the domina..

  Consistent fact with our discussion of specific investments

Wy might a parent company like McDonald Hilton choose to franchise its local outlet rather than own them and staff them with employees In many smaller cities all McDonalds franchise are owned by the same franchise.

  What would the changes in attendance would you expect

Movie tickets prices increased by 5% and resulted in a 8% drop in sales. What is the price elasticity of demand? 2. If ticket prices decreased by 5% instead of raising them, what would the changes in attendance would you expect? 3. If a competing cin..

  Assume demand and supply conditions in the competitive

Assume demand and supply conditions in the competitive market for unskilled labor are as follows.

  Could you have both a comparative and absolute advantage

could you have both a comparative and absolute advantage in trading. If so, what if at all would be the benefit for your country to trade with any other country.

  Estimate the cost of the tution

Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.

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