Question
In: Finance
The National Bank of Mayville quotes an APY of 3.5 percent on a one-year money market...
The National Bank of Mayville quotes an APY of 3.5 percent on a one-year money market CD sold to one of the small businesses in town. The firm posted a balance of $2,500 for the first 90 days of the year, $3,000 over the next 180 days, and $4,500 for the remainder of the year.
How much in total interest earnings did this small business customer receive for the year?
Solutions
jeff jeffy answered 9 months agoRelated Solutions
The bank lends money to clients at a rate of 3.5% per week. [a] What is...
The bank lends money to clients at a rate of 3.5% per week.
[a] What is the nominal interest rate for these loans?
[b] What is the effective annual interest rate?
A local finance company quotes an interest rate of 18 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18 percent on
one-year loans. So, if you borrow $32,000, the interest for the
year will be $5,760. Because you must repay a total of $37,760 in
one year, the finance company requires you to pay $37,760/12, or
$3,146.67, per month over the next 12 months.
a.
What interest rate would legally have to be quoted? (Do
not round intermediate calculations and enter your answer as a
percent rounded to...
A local finance company quotes an interest rate of 16 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 16 percent on
one-year loans. So, if you borrow $30,000, the interest for the
year will be $4,800. Because you must repay a total of $34,800 in
one year, the finance company requires you to pay $34,800/12, or
$2,900.00, per month over the next 12 months. What rate would
legally have to be quoted?
A local finance company quotes an interest rate of 18.1 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18.1 percent on
one-year loans. So, if you borrow $39,000, the interest for the
year will be $7,059. Because you must repay a total of $46,059 in
one year, the finance company requires you to pay $46,059/12, or
$3,838.25 per month over the next 12 months.
What rate would legally have to be quoted? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places,...
A local finance company quotes an interest rate of 18 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18 percent on
one-year loans. So, if you borrow $35,000, the interest for the
year will be $6,300. Because you must repay a total of $41,300 in
one year, the finance company requires you to pay $41,300/12, or
$3,441.67, per month over the next 12 months.
a. what rate would legally have to be quoted?
b. what is the effective annual rate?
A local finance company quotes a 17 percent interest rate on one-year loans. So, if you...
A local finance company quotes a 17 percent interest rate on
one-year loans. So, if you borrow $30,000, the interest for the
year will be $5,100. Because you must repay a total of $35,100 in
one year, the finance company requires you to pay $35,100/12, or
$2,925.00, per month over the next 12 months.
a. What rate would legally have to be quoted?
b. What is the effective annual rate?
Consider the following information: – On the FOREX market, an American bank gives the following quotes...
Consider the following information: –
On the FOREX market, an American bank gives the following
quotes
€:$ = 1.2010-1.2060
₤:$ = 1.7960-1.8010 –
A British bank gives the following quote: ₤:€ = 1.5060-1.5080 Is
there an arbitrage opportunity? Why or why not? If yes, what is the
arbitrage profit? Use $1,000,000.
Please show all work will rate 5 stars thank you!
Discuss money markets. Money market securities are debt offerings with a maturity of one year or...
Discuss money markets. Money market securities are debt offerings
with a maturity of one year or less. They are very liquid and can
be sold in a secondary market. Discuss the contents of the most
popular money market securities and whether money market securities
can be justified by scripture.
Suppose that the National Bank of Georgia increases the money supply. How would that effect the...
Suppose that the National Bank of Georgia increases the money
supply. How would that effect the prices and the real interest rate
in the short run and in the long run? Illustrate your answer
graphically.
1. Suppose you put some money in a bank account. After one year, you have enough money to...
1. Suppose you put some money in a bank
account. After one year, you have enough money to buy 3%
more worth of goods than you can buy today. What
statement must be true?
A. Nominal interest rate is 3%
B. Real interest rate is 3%
C. Nominal interest rate exceeds real interest rate
by 3%
D. Inflation is 3%
E. Inflation is
negative ______
2. Consumers in a certain region typically buy apples
and bananas. If the price of apples were to rise
dramatically, while the price of bananas stays...
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