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1. What is an annual percentage rate? (0.5 points) a yearly rate that doesn’t take into account any compounding interest throughout the year…
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the rate, for a payment period, multiplied by the number of payment periods in a year.…
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Interest rate – An interest rate is the percentage of the principal funds that is charged and paid for the use of money. It is expressed as an annual percentage rate (APR) for loans and annual percentage yield (APY) for interest earned.…
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Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset,…
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|Provide a real-world example for the time |A 10% interest rate for an investment of $3,000. In a year the interest would be $300 |…
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A fixed rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments.…
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Which of the following is the actual rate of interest paid or earned over a year's time?…
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Interest is stated in terms of a percentage rate to be applied to the face value of the loan.…
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1. What is an annual percentage rate? An annual interest rate that doesn’t take into account any compounding of interest that happens during that year. (0.5 points)…
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An interest rate is a percentage of the principle, which is the total amount of a loan, given by a lender for the use of an asset. The asset could either be a house or vehicle. An interest rate is usually based on an annual basis so this is also…
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Rate of interest – the amount charged/paid for the use of money, specifically money that is borrowed from a Lender (bank)…
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1. You are considering various retirement plans. Your goal is to have a lump sum of $3,000,000 available (‘in the bank’) when you retire at age 67. The various plans, with their payment schedules, are listed below. In each case, calculate the payment(s) that must be made into the plan to ensure that you have the $3,000,000 available. For each plan, you may assume that your opportunity cost of funds is 6% per year; for each plan, you may assume that the phrase “at age XX” means the same thing as “on your XX’th birthday”.…
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|[pic]Interest rate – the cost of borrowing money and the return for lending money. They also measure the opportunity cost to both individuals and firms, of |…
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As a result of our current economic situation, the bank is contemplating lowering interest rates to a monumental level. They are suggesting we make them negative. This would mean it would cost money to save money; the intention behind this is to stimulate spending within the economy. If businesses are forced to spend more money, then aggregate demand shifts to the right as investment, one of the components of AD, has been increased.…
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