Say you are considering two loans. Loan F has a nominal interest rate of 5. 66%, compounded monthly. Loan G has a rate of 6. 02%
1 answer:
When the effects and impacts of compounding over time are taken into account, the effective annual interest rate is the true return on a savings account or any other interest-paying investment.
Option C is the correct answer: Loan F's effective rate will be 0.302 percentage points lower than Loan G's.
<h3>Given</h3>The interest rate on loan F is 5.66 percent per month, compounded.
The interest rate on loan G is 6.02 percent, compounded semi-annually.
<h3>Computations of effective rates</h3>Therefore, option c is the correct answer.
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Answer:
amount invest in B is 2000
Explanation:
given data
invested in Fund A = 5000
return profit A = 3%
return profit B = 10%
both together returned profit = 5%
solution
we consider here amount invest in B = x
so profit from fund B is
profit from fund B = 10% × x = 0.1 x
and
profit from fund A = 5000 × 3% = 150
so total profit = 0.1x + 150
and total profit = 5%
so we can say
5% =
solve it we get
x = 2000
so amount invest in B is 2000