Calculating the effective annual interest rate
Not what you're looking for?
If you barrow $4,000 at $500 interest for one year, What is your effective interest rate for the following payment plans?
a. Annual payment.
b. Semiannual payment.
c. Quarterly payment.
d. Monthly payment.
Purchase this Solution
Solution Summary
Solution describes the steps to calculate effective interest rate in the given cases.
Solution Preview
If you barrow $4,000 at $500 interest for one year, What is your effective interest rate for the following payment plans?
a. Annual payment.
Annual number of payments=1
Interest=$500
Total number of payments=1
Principal=$4000
Effective interest rate=(2*Annual number of ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Motivation
This tests some key elements of major motivation theories.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Introduction to Finance
This quiz test introductory finance topics.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.