You have agreed to a $30,000 fixed-rate loan from People's Bank today and promise to repay the loan with 24 equal monthly payments at an APR of 4.50%. What is the EAR of this loan?
A) 4.71%
B) 4.63%
C) 4.59%
D) 4.50%
Answer: C
Explanation: C) EAR = - 1 = (1 + .045/12)12 - 1 = 4.59%
You might also like to view...
The federal grant giving the exclusive right to the reproduction and sale of a literary, artistic, or musical composition is called a(n) ____________________
Fill in the blank(s) with correct word
There is a direct relationship between the complexity of a production process and overhead costs
Indicate whether the statement is true or false
The general requirements for a liquidated damages clause to be enforceable are that:
A) The liquidated damages clause applies only to unforeseeable damages. B) Actual damages are difficult to determine and the liquidated damages amount is reasonable. C) The parties have rescinded the contract. D) The breaching party used its best efforts to avoid a breach of the contract. E) Actual damages exceed the amount foreseen by the parties.
Order fill rates of 100% ______.
a. are impossible to achieve, no matter what b. can be achieved, provided we are willing to overstock items c. can be achieved only in some industries d. can be achieved using a periodic review systems