Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

First National Bank charges 11.4 percent compounded monthly on its business loans. First United Bank charges 11.6 percent compounded semiannually. Calculate the EAR for each bank.

Sagot :

Tundexi

Answer:

EAR = (1 + APR/m)^m - 1. Where m = compounding periods

First National Bank

11.4 percent compounded monthly on its business loans

EAR = (1+11.4%/12)^12 - 1

EAR = (1.0095)^12 - 1

EAR = 1.12014921627 - 1

EAR = 0.12014921627

EAR = 12.014921627%

EAR = 12.01%

First United Bank

11.6 percent compounded semiannually

EAR = (1+11.6%/2)^2 - 1

EAR = (1.058)^2 - 1

EAR = 1.119364 - 1

EAR = 0.119364

EAR = 11.9364%

EAR = 11.94%

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.