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
Kruka [31]
2 years ago
8

Craig is considering four loans. Loan L has a nominal rate of 8. 254%, compounded daily. Loan M has a nominal rate of 8. 474%, c

ompounded weekly. Loan N has a nominal rate of 8. 533%, compounded monthly. Loan O has a nominal rate of 8. 604%, compounded yearly. Which of these loans will offer Craig the best effective interest rate? a. Loan L b. Loan M c. Loan N d. Loan O.
Business
1 answer:
In-s [12.5K]2 years ago
7 0

<em><u>Loan L</u></em> would be best for Craig that has a nominal rate of 8.254% that is compounded daily a sit gives an<u> effective rate of interest</u> as 117.95.

The formula for <u>computing compounded rate</u> of interest is given as follows:

A=P(1+\frac{r}{n})^{nt}

The effective rate of interest for loan L as per the above formula would be:

100(1+\frac{0.08254}{365} )^{2*365}\\=117.95

The effective rate for loan M would be:

100(1+\frac{0.08474}{52} )^{2*52} \\=118.45

The effective rate for loan N would be:

100(1+\frac{0.08533}{12})^{2*12}\\=118.54

The effective rate for loan O would be:

100(1+\frac{0.08604}{1} )^{2*1} \\=117.95

Learn more about the effective rate of interest here:

brainly.com/question/1398822

You might be interested in
A study was done on the campus of a major state institution to measure attitudes of students to-wards the recent fee increase. O
kiruha [24]

Answer: Ordinal scale.

Explanation:Ordinal scale is the level of measurement that gives the ranking of data without showing the degree of variation between them. It helps in identifying if object has more or less characteristic when compared to another object but does not tell the exact weight of the characteristic. Data in Ordinal scale is usually given in order of magnitude since there is no standard of measurement of differences. For example 1=most willing to 5=least willing.

3 0
3 years ago
By law, a company has to ________.
saw5 [17]

Answer:

I'm going to use common sense and say A.

Explanation:

4 0
2 years ago
Read 2 more answers
Scott is a 15-year-old student who works at a part-time job and gets paid every two weeks. His paycheck goes directly to his pre
malfutka [58]

Scott was denied the loan because he was not old enough to qualify.

<h3>What is the Payday loan?</h3>

Payday loan is a type of unsecured loan in which high rate of the interest is given to the borrower. It is a kind of the short term loan basically for the two weeks.

According to the above situation, Scott is cannot get the payback loan because he is  minor to sanction a loan. He must have the age of 18 years or above.

Learn more about payday loan here:

brainly.com/question/3949419

#SPJ1

4 0
1 year ago
Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods
pantera1 [17]

Answer:

The correct answer is C) purchase Canadian dollar put options.

Explanation:

A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.

The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.

Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.

5 0
3 years ago
(Numeric Entry) Suppose you put $1000 into a money market mutual fund that paid 10% a year, where interest was compounded annual
kkurt [141]

Answer:

$1100

Explanation:

Compound Interest is a multiplying effect interest , in which interest for each successive period  is calculated on (Principal + Interest) of each preceeding period .

Formula :  A = P(1+r/n) power 'nt  .

r = Interest rate , t = time , n = compound in time 't' , P = Principal

A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100

5 0
3 years ago
Other questions:
  • When marx argued that capitalism “reproduces the class structure,” he meant that?
    12·1 answer
  • Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 3
    11·2 answers
  • ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu
    13·1 answer
  • a firm in a perfectly competitive industry is producing 1000 units of output and earning revenues of 50000. At that level of out
    6·1 answer
  • Determine the ending inventory using the periodic inventory system and the weighted average cost method (rounded to the nearest
    12·1 answer
  • Cell Phones for Soldiers is a nonprofit organization with a long-term commitment to one cause. Suppose that FedEx volunteered to
    9·1 answer
  • Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one m
    10·1 answer
  • Why would a Roth 401(k) investment plan allow you to invest the most amount of money?
    11·1 answer
  • Assume an investor purchases the net assets of an investee for the cash purchase price is $75,600. The investor is willing to pu
    7·1 answer
  • Diners are served in a process with two resources. The first resource has a capacity of 1.1 diners per hour. The capacity of the
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!