Questions from Engineering

Q: Some years ago, Penny purchased the car of her dreams for

Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase time and taking a $20,000, 5-year, 6% per year, compounded monthly loan with 60 monthly payments of $38...

Q: An interest rate of 12% per year, compounded monthly,

An interest rate of 12% per year, compounded monthly, is nearest to: (a) 12.08% per year (b) 12.28% per year (c) 12.48% per year (d) 12.68% per year

Q: What is the difference between APR and APY? Which one is

What is the difference between APR and APY? Which one is used in interest factor formulas, tables, and spreadsheet functions?

Q: Identify the compounding period for the following interest statements: (

Identify the compounding period for the following interest statements: (a) nominal 7% per year, compounded monthly; (b) effective 6.8% per year, compounded monthly; and (c) effective 3.4% per quarter,...

Q: Determine the number of times interest is compounded in a year for

Determine the number of times interest is compounded in a year for the following interest statements: (a) 1% per quarter; (b) 2% per month; and (c) 8% per year, compounded every 2 months.

Q: For an interest rate of 10% per year, compounded quarterly

For an interest rate of 10% per year, compounded quarterly, determine the number of times interest is compounded (a) per quarter, (b) per 6 months, (c) per year, and (d) per 3 years.

Q: For an interest rate of 1% per quarter, determine the

For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual period, (b) year, and, (c) 2 years.

Q: First Corp Bank advertises interest paid at 2% every 6 months

First Corp Bank advertises interest paid at 2% every 6 months. What is the APR?

Q: For an interest rate of 9% per year, compounded every

For an interest rate of 9% per year, compounded every 4 months, determine the nominal interest rate per (a) 8 months, (b) 12 months, and (c) 2 years.

Q: The Premier Car Title Loan Company makes emergency loans of up to

The Premier Car Title Loan Company makes emergency loans of up to $500 for 1 month for a fee of 4% of the loan amount. If a person borrows $500, what is (a) the nominal interest rate per year, and (b)...