Which factor or factors listed below are internal influences on a loan’s interest rate?I. current and prospective inflationII. collateral offered by the borrowerIII. the strength of the economy
Jessica’s bank is offering her a loan with a stated rate of 4.90% interest. If the interest is compounded every two months, what will Jessica really pay for interest?
Why is the Federal Funds Rate so influential on other interest rates?
Joel takes out a loan with a stated rate of 11.85% interest. If the interest is calculated weekly, how much greater is Joel’s effective rate than his stated rate?
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%, compounded semiannually. Which loan will give the lower effective interest rate, and how much lower will it be?
Melanie is looking for a loan. She is willing to pay no more than an effective rate of 9.955% annually. Which, if any, of the following loans meet Melanie’s criteria? Loan A: 9.265% nominal rate, compounded weeklyLoan B: 9.442% nominal rate, compounded monthlyLoan C: 9.719% nominal rate, compounded quarterly
Melanie is looking for a loan. She is willing to pay no more than an effective rate of 9.955% annually. Which, if any, of the following loans meet Melanie’s criteria? Loan A: 9.265% nominal rate, compounded weeklyLoan B: 9.442% nominal rate, compounded monthlyLoan C: 9.719% nominal rate, compounded quarterly
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