please answer question 52 and 53 and please explain how do you get your answers

Question

please answer question 52 and 53 and please explain how do you get your answers

Effective Interest Rate. First National Bank pays 6.2% interest compounded semiannually Second National Bank pays 6% interest compounded monthly. which bank offers the higher effective annual interest rate? (LO5-5) Loan Payments. You take out an $8.000 car loan that calls for 48 monthly payments starting after 1 month at an APR of 10%, (LO5-4) What is your monthly payment ?What is the effective annual interest rate on the loan? What if the payments are made in four annual year-end installments? What annual payment would have the same present value as the monthly payment you calculated?

Explanation / Answer

Answer:52

First National bank=(1+6.2%/2)2-1

=6.30%

Second National Bank=(1+6%/12)12-1

=6.17%

So First National bank offers the higher effective annual interest rate.

Answer:53 a.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.