A bank is offering to sell 6month certificates of deposit for $9500. At the end of 6
Question:
A bank is offering to sell 6month certificates of deposit for $9500. At the end of 6 months, the b~ will pay $10,000 to the certificate owner. Based on a 6month interest period, compute the nominal annual interest rate and the effective annual interest rate
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (15 reviews)
P 4500 F 10000 i n 1 six month interest period F ...View the full answer
Answered By
Usman Nasir
I did Master of Commerce in year 2009 and completed ACCA (Association of Chartered Certified Accountants) in year 2013. I have 10 years of practical experience inclusive of teaching and industry. Currently i am working in a multinational company as finance manager and serving as part time teacher in a university. I have been doing tutoring via many sites. I am very strong at solving numerical / theoretical scenariobased questions.
4.60+
16+ Reviews
28+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions

A bank is offering an interest rate call with an expiration of 45 days. The call pays off based on 180day LIBOR. The volatility of forward rates is 17 percent. The 45day forward rate for 180day...

At the end of six months of activity, Mrs Frances Nissen Abbott wanted to analyze the results of the nursery's activities. He wondered what the company's status as of December 31, 2019 was and what...

A bank is offering a loan of $25,000 with a nominal interest rate of 18% compounded monthly, payable in 60 months. (a) What is the monthly payment? (b) If a loan origination fee of 2% is charged at...

Why should every credit application be signed by the applicant or an authorized officer of the applicant? There are several factors that influence the setting of the terms and conditions of a sale....

Did the EHR seem to be well aligned with SunHealth's overall strategic plan? Explain your rationale.

How many kcal of heat are needed to vaporize 5.00 kg of water at 100C and raise the temperature of the steam to 145C?

Understand the current and longestablished fashion calendar. LO.1

Refer to the information in Exercise 911. Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. In Exercise 911 Kraft Foods...

answer is attatched i just need to know the steps to complete the problem if excel is used PLEASE INCLUDE THE FORMULAS!! thanks! Problem 1 Aggregate planning Consider the following 12month forecast...

Figure 435 shows an EER diagram for Vacation Property Rentals. This organization rents preferred properties in several states. As shown in the figure, there are two basic types of properties: beach...

A department store charges 13/4%interest per month, compounded continuously, on its customer's charge accounts. What is the nominal annual interest rate? What is the effective interest rate?

Two savings banks are located across the street from each other. The West Bank put a sign in the window saying, "We pay 6.50%, compounded daily." The East Bank put up a sign saying, "We pay 6.50%,...

On Connect, access the Excel tern exceI plates for Chapter 12. There you will find five years of weekly returns for the S&P 500 and Fidelity's Select Banking Fund (ticker FSRBX). a. Set up a...

Business meeting simulation: Start with preparing an email and send it to all the participant of the meeting to inform about the meeting topic/ agenda/time of the meeting/ room #. Create a meeting...

Topic #1: RayleighRitz Method (RRM) Problem 1 a) Find the exact solution for the beam torsion problem shown above. The loading consists of a uniformly distributed torque m and a point torque M...

Assume that a $10,000, fiveyear, 8% term note, is issued on October 1, 20X3: what is the Journal Entry Cash Note Payable 10,000 10,000 Cash 10,000 Accounts Payable 10,000 Note Payable 10,000 Cash...

How do I get help with combining a final paper over a period of 6 weeks for my Senior Management Seminar course MGMT495 at American Public University.

Question: Fillmore, Inc. specializes in customized optimization spreadsheet software. The results of the company's operations during the prior year ( 2 0 ?are given in the following table. All...

If p is near 0 or 1, how large a sample is needed to employ the largesample confidence interval procedure? LO6 LO6

Saccharin is an artificial sweetener that is used in diet beverages. In order for it to be metabolized by the body, it must pass into cells. Below are shown the two forms of saccharin. Saccharin has...

Kio Outfitters estimated the following losses and probabilities from past experience: What is the probability Kio will experience a loss of $5,000 or greater? If an insurance company offers a What is...

An engineer at Delphi Systems is considering the projects below, all of which can be considered to last indefinitely. The company's MARR is 13% per year. (a) Determine which projects should be...

The five independent projects shown below are under consideration for implementation by KNF Neuberger, Inc. The company's MARR is 15% per year. (a) Determine which projects should be undertaken on...

An estimated 6 billion gallons of clean drinking water disappear each day across the United States due to aging, leaky pipes and water mains before it gets to the consumer or industrial user. The...

Eye Deal Optometry leased vision  testing equipment from Insight Machines on January 1 , 2 0 2 4 . Insight Machines manufactured the equipment at a cost of $ 2 0 0 , 0 0 0 and lists a cash selling...

help! ee all photos + Add to o e D C N X Edit & Create Share Table of Contents No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years. Net...

Business law A person may have the liability of a partner even though no partnership exists True False
Study smarter with the SolutionInn App