3. Alex's checking account earns 0.2% interest compounded monthly. What is the EAR of that account? Explanation: Since the nominal rate is 0.2%, i is 0.2/100 = 0.002. n is 12 because there are 12 monthly payments per year. Plugging those values into the decimal formula for EAR yields...
Also, the monthly rate yields an interest of $83, which is slightly higher than the interest produced by quarterly rates at $82.40. Daily compounding yields a higher interest of $83.60, which is slightly higher than the interest at monthly rates of $82.60. From the pattern above, we can a...
In order to facilitate interest, between the three interest rate conversion, the conversion formula is: the annual interest rate 83019 12 = monthly interest rate The monthly interest rate, 30= rate The annual interest rate 83019 360 = daily interest rate (two) starting point of interest When ...
an economy’s growth rate is derived as the annual rate of change at which a country’s GDP increases or decreases. This rate of growth is used to measure an economy’s recession or expansion. If the income within a country declines for two consecutive...
What is the monthly payment formula for fixed installment loans? To find the monthly payment on a fixed installment loan: (P x J)/(1-(1+J)^-N). Where: P: the principal amount (the original amount borrowed) J: the interest rate per month (APY divided by 12, then divided by ...
business. For example, if a bank offers a nominal interest rate of 5% per year on a savings account and compounds interest monthly, the effective annual interest rate will be higher than 5%. Therefore, the bank might consider promoting the account at the EAR because that rate will appear ...
a bank client. The client initially invested $1,000 and agreed to have the interest compounded monthly for one full year. As a result of compounding, the effective interest rate is 12.683%, in which the money grew by $126.83 for one year, even though the interest is offered at only 12...
1/12. Calculate the single monthly mortality rate (SMM) for month 6, 100 PSA:A. 0.000837.B. 0.001006.C. 0.001259. 正确答案:B 分享到: 答案解析: CPR = 0.2% * 6 = 0.012 SMM = 1-(1-0.012)1/12 = 0.001006 统计:共计9人答过,平均正确率66.66% 问题:进入高顿部落发帖帮助...
This formula will add the Starting Principle (D5) to the interest earned (D5*($I$6/12)) for the period. We are dividing the yearly interest rate $I$6 by 12 as the regular deposit is made monthly. Copy the formula and apply it to the cells below. In cell D6 (under the column...
rate8301912=monthlyinterestrate Themonthlyinterestrate,30=rate Theannualinterestrate83019360=dailyinterestrate (two)startingpointofinterest Whencalculatingtheinterestonsavingsdeposits,the principalshouldbe"Yuan"asthestartingpoint,andthe interestrateisnotlessthanRMByuan,andtheamountof interestshallbedividedintofour...