When the individual calculates the effective rate of the loan, the most appropriate statement is the effective rate will exceed the nominal rate.
<h3>What is effective annual rate?</h3>
The effective annual rate (EAR) is the interest rate for the entire year. Interest Charges Interest expense is incurred when a corporation funds itself with debt or capital leases.
Interest appears on the income statement, but it can also be earned on an investment or paid on a loan as a result of compounding interest over time.
It is usually higher than the marginal rate and is used to evaluate different financial products with varying compounding periods - weekly, monthly, yearly, and so on.
When the number of compounding periods is increased, the effective yearly interest rate rises over time.
Therefore, the correct option is A.
Learn more about the effective rates of the loans here:
brainly.com/question/2405320
Answer:
Present value=Cash flows*Present value of discounting factor(rate%,time period)
=50/1.07+50/1.07^2+50/1.07^3+250/1.07^4+400/1.07^5+600/1.07^6
=$1006.94(Approx)
Future value=1006.94*(1.07)^6
=$1511.14(Approx).
Explanation:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Answer: Customer contact center
Explanation: In simple words, a customer contact center refers to the point in an organisation from where all the information regrading the customers and the interaction with the customers is managed.
In such centers the customers are managed by both calls and other web applications like e-mail etc.
Thus, the correct answer is customer contact center.
Answer:
The annual YTM will be = 6.133735546% rounded off to 6.13%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Coupon payment = 1000 * 0.06 * 6/12 = 30
Number of periods remaining till maturity = 11 * 2 = 22
semi annual YTM = [ (30 + (1000 - 989 / 22)) / (1000 + 989 / 2)
semi annual YTM = 0.03066867773 or 3.066867773% rounded off to 3.07%
The annual YTM will be = 3.066867773% * 2 = 6.133735546% rounded off to 6.13%