You have 0 free answers left
Access 3.4 million answers at $2/month

Find the APR, or stated rate, in each of the following cases:

Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
% Semiannually 11.60 %
% Monthly 8.70
% Weekly 7.80
% Infinite 15.90

Answer

1. Semiannual

EAR = [1 + (APR/m)]m - 1

[(EAR + 1)1/m - 1 ] * m = APR

APR = [(0.1160 + 1)1/2 - 1 ] * 2

APR = 11.28 %

---------------------------------------------

2.Monthly

APR = [(0.0870 + 1)1/12 - 1 ] * 12

APR = 8.37%

---------------------------------------------

3. Weekly

APR = [(0.0780 + 1)1/52 - 1 ] * 52

APR = 7.52%

---------------------------------------------

4. Infinite (use some really high number for m.

APR = APR = [(0.1590 + 1)1/100,000 - 1 ] * 100,000

APR = 14.76%

Share

Related Questions

What best describes the time value of money?
a. The interest rate charged on a loan.
b. Accounts receivable that are determined uncollectible.
c. An investment in a checking account.
d. The relationship between time and money.
Answered
11 Mar 2020

Maintenance Margin

You are bearish on XYZ stock and decide to short 100 shares at the current market price of $50 per share.

How much in cash or securities must you have in your brokerage account if the broker

Answered
29 Sep 2019

Suppose you sell short 75 shares of a stock initially selling for $95. Your margin requirement is 100%.

What is the value of the 75 shares of stock (this is the amount you will borrow a Time 0)?

If the stock price drops to $80 per share, what is the new value of the 75 shares of stock (this is the amount you will pay back at Time 1)?

What is the total $ amount that you made (or lost) on the trade?

What is your return?

Answered
30 Sep 2019
© Notesolution Inc. - OneClass 2020TermsPrivacyAcademic Integrity