What is the effective annual rate of a mortgage

Assignment Help Financial Management

Reference no: EM131872670

You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of .035%, a weekly compounded rate of .305%, a monthly compounded rate of 1.25%, a quarterly compounded rater of 4.00%, a semiannually compounded rate of 88%, or an annually compounded rate of 15%?

What is the effective annual rate (EAR) of a mortgage that is advertised a 6.256.25 % (APR) over the next twenty years and paid with quarterly payments?

What is the effective annual rate? (EAR) of the mortgage at 6.256.25 % APR with quarterly payments?

Sam? Hinds, a local? dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $20,000. The purchase will be financed with an interest rate of 10?% loan over10 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments (22 per year) and monthly payments (12 per year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year?

What will Sam have to pay for this equipment if the loan calls for semiannual payments (22 per year)?

Matt Johnson delivers newspapers and is putting away $30 at the end of eachquarter from his paper route collections. Matt is11 years old and will use the money when he goes to college in 7years. What will be the value of? Matt's account in 7 years with his quarterly payments if he is earning 5.5%(APR), 8 % (APR), or15 % (APR)?

What will be the value of Matt's account in 7 years with his quarterly payments if he is earning 5.5% (APR)?

Reference no: EM131872670

Questions Cloud

How many tv sets will be produced consumed and imported : How many TV sets will be produced, consumed, and imported? Calculate the dollar value of Australian consumer surplus and producer surplus.

Place of our traditional policing methods : Topic 1: Should community policing be used in place of our traditional policing methods? Why or why not?

What are the risks and benefits of censorship : What are the risks and benefits of censorship? Who should make decisions about censorship and what factors should they consider?

Examine the negative effect on the company : Explain how Volkswagen's failure to fully protect itself against foreign exchange fluctuations had a negative effect on the company.

What is the effective annual rate of a mortgage : What is the effective annual rate (EAR) of a mortgage that is advertised a 6.256.25 % (APR) over the next twenty years and paid with quarterly payments?

Interview a health care leader about a new technology : Interview a health care leader about a new technology he or she selected, planned for, and implemented.

United states ability to combat criminal activity : How do the requirements related to the steps in processing a case impact the United States' ability to combat criminal activity?

Preparing adjusting entries for annual financial statements : Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting entries for annual financial statements

Research the judicial system of home state : Research the judicial system of your home state or a different state of your choice. Use the National Center for State Courts website

User Account

All Pages