Other Papers McOn

1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points)

1. What is an annual percentage rate? (0.5 points)

The terms annual percentage of rate (APR), nominal APR, and effective APR (EAR) describe the interest rate for a whole year (annualized)...

2. What is an annual percentage yield? (0.5 points)

Annual percentage yield (APY) is a normalized representation of an interest rate, based on a compounding period of one year. APY figures...

3. Name at least one advantage of credit cards. (0.5 points)

you get money you dont have

4. Name at least one disadvantage of credit cards. (0.5 points)

you pay back more than you spend

5. If you take out a $1,000 loan for college at 7% interest, what is the principal? (0.5 points)

6. What is a loan? (0.5 points)

A thing that is borrowed, esp. a sum of money that is expected to be paid back with interest.

1. What is an annual percentage rate? (0.5 points)

The terms annual percentage of rate (APR), nominal APR, and effective APR (EAR) describe the interest rate for a whole year (annualized)...

2. What is an annual percentage yield? (0.5 points)

Annual percentage yield (APY) is a normalized representation of an interest rate, based on a compounding period of one year. APY figures...

3. Name at least one advantage of credit cards. (0.5 points)

you get money you dont have

4. Name at least one disadvantage of credit cards. (0.5 points)

you pay back more than you spend

5. If you take out a $1,000 loan for college at 7% interest, what is the principal? (0.5 points)

6. What is a loan? (0.5 points)

A thing that is borrowed, esp. a sum of money that