Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern?
A. 0.52%
B. 0.44%
C. 0.36%
D. 0.30%
E. 0.24%
Answer: D
Business
You might also like to view...
Recency theory suggests a person must see an advertisement three times before it will have an effect
Indicate whether the statement is true or false
Business
The most common type of discount is the quantity discount.
Answer the following statement true (T) or false (F)
Business
Sophistication in technology and the media's use of it have led to fulfillment of Marshall McLuhan's prediction that the world would become a "global village."
Indicate whether the statement is true or false
Business
In Maslow’s theory, __________ needs include the need for self-fulfillment, for developing one’s full potential, increasing one’s competence, and becoming a better person.
Fill in the blank(s) with the appropriate word(s).
Business