Chapter 6 review
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(1.015)^12-1=19.56%
A credit card charges 18 percent interest per year (APR) (1.5 percent each month). What is the EAR?
Finite number of growing cash flows
A growing annuity has a(n)
APY
Another common term for the effective annual rate (EAR) is the:
Effective
Assume interest is compounded monthly. The ______ annual rate will express this rate as though it were compounded annually.
Principal
The original loan amount is called the:
Semiannually
An effective annual rate of 7.12 percent is equal to 7 percent compounded ________.
pure discount loan
Which of the following is the simplest form of loan?