1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nina [5.8K]
2 years ago
8

A credit card company charges 18.6% percent per year interest. Compute the effective annual rate if they compound, (a) annualy,

(b) monthly (c) daily and (d) continuosuly.
Mathematics
1 answer:
Darina [25.2K]2 years ago
3 0

Answer:

a) Effective annual rate: 18.6%

b) Effective annual rate: 20.27%

c) Effective annual rate: 20.43%

d) Effective annual rate: 20.44%

Step-by-step explanation:

The effective annual interest rate, if it is not compounded continuously, is given by the formula

I=C(1+\frac{r}{n})^{nt}-C

where

<em>C = Amount of the credit granted </em>

<em>r = nominal interest per year </em>

<em>n = compounding frequency </em>

<em>t = the length of time the interest is applied. In this case, 1 year. </em>

In the special case the interest rate is compounded continuously, the interest is given by

I=Ce^{rt}-C

(a)  Annually

I=C(1+\frac{0.186}{1})-C=C(1.186)-C=C(1.186-1)=C(0.186)

The effective annual rate is 18.6%

(b) Monthly

<em>There are 12 months in a year </em>

I=C(1+\frac{0.186}{12})^{12}-C=C(1.2027)-C=C(0.2027)

The effective annual rate is 20.27%

(c) Daily

<em>There are 365 days in a year </em>

I=C(1+\frac{0.186}{365})^{365}-C=C(1.2043)-C=C(0.2043)

The effective annual rate is 20.43%

(d)  Continuously

I=Ce^{0.186}-C=C(1.2044)-C=C(0.2044)

The effective annual rate is 20.44%

You might be interested in
Ms. Roberts makes bouquets of flowers. Every bouquet of flowers she makes includes 8 flowers. The table below shows the number o
alukav5142 [94]
She made 28 bouquets of flowers!
7 0
3 years ago
No link please……. Enter the value of b when the expression 30.4x + b is equivalent to 3.4 (6x-3.1)
TiliK225 [7]

Answer:

61

Step-by-step explanation

sped

4 0
2 years ago
Read 2 more answers
WILL GIVE 10 POINTS Leona was using an eyedropper to place droplets in a small container.
il63 [147K]

Answer:

A. milliliters     B. 8 fluid ounces

Step-by-step explanation:

An eyedropper is very small and can only hold a small amount.  You can eliminate 2 from the start: millimeter and meter.  These two are use for measuring distance not volume.  ex.) I walked 2 meters.  A liter is too big for an eyedropper.  ex.) 1 liter of soda.

A glass full of juice would be 8 fuild ounces because a glass is basically a cup.  A 8 gallons is too big, and a 8 tablespoons is too small.  ex.) gallon of milk and tablespoon of sugar.  8 cups is too big because a glass is about 1 cup.  8 fluid ounces = 1 cup

4 0
3 years ago
Which factor is common to both 2+7+10 and 2−−6?
Black_prince [1.1K]

Answer:

2

Step-by-step explanation:

5 0
3 years ago
What is the value of x and y?
Pavel [41]

Answer:

x=\boxed{2}

y=\boxed{4}

Step-by-step explanation:

\begin{cases} y= 6x-8... (1)\\\\y=-3x+10...(2)\end{cases}

From equations (1) & (2), we find:

6x - 8 = - 3x +10

\therefore 6x+3x = 8+10

\therefore 9x = 18

\therefore x =\frac{18}{9}

\therefore x = 2

Plug x = 2 in equation (1)

y = 6(2)-8 = 12-8 =4

So,

x=\boxed{2}

y=\boxed{4}

6 0
2 years ago
Read 2 more answers
Other questions:
  • Choose the right answer. Jim Pine wants to learn golf. He makes the following purchases: Used Clubs $150 Bag $75 Golf Balls and
    10·1 answer
  • Help pleasee!!!!!!!!!!
    7·1 answer
  • One acre is equivalent to 43,560 square feet. If an acre is also equivalent 1o 4,840 square yards, how many square yards, how ma
    11·1 answer
  • Test the given claim. Identify the null​ hypothesis, alternative​ hypothesis, test​ statistic, P-value, and then state the concl
    6·1 answer
  • PLEASE HELP ME ASAP THIS IS A QUIZ
    5·2 answers
  • 7n-15=41 What is the answer for n I will give you branlist​
    11·2 answers
  • Determine the Unit Rate.
    11·2 answers
  • 50 points!!
    7·2 answers
  • Guys im not in high school im in middle school
    14·2 answers
  • A French toast recipe calls for
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!