17 5 pts Master Card and other credit card issuers must print the nominal annua

Question

17 5 pts Master Card and other credit card issuers must print the nominal annua the card's effective annual rate (EFF%)? rate (APR) on their monthly statements. If the APR is stated as 23 .35%, but interest is compounded monthly, what is Your answer should be between 16.82 and 29.74, rounded to 2 decimal places, with no special characters 5 pts Question 18 An investment promises the following cash flow stream: $1,000 at Time O: $2.000 at the end of Year 1 (or at t- 1 rate of 7.5%, what is the present value of the cash flow stream? $3,000 at the end of Year 2: and $5,000 at the end of Year 3. At a discount Your answer should be between 8343.00 and 11,000.00, rounded to 2 decimal places, with no special characters

Explanation / Answer

17)

Effective annual rate:

= (1+23.35%/12)^12-1

= 1.9458%^12-1

= 26.02%

Hence, effective annual interest rate is 26.02%

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