An investment asset pays to the owner 5.75 % on annual basis. IF the same asset pays annual interest rate of 5.25% instead of 5.75% on a semi annual basis without compounding, what isthe difference in each payment to the owner who holds 16,800 dollars worth of this asset?
4.20
42
84
420
840
qa is 42. how so? please explain in detailed fashion.
manhattan interest word problem
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5.25% of 16800 is 882
semi annual basis, that's 2 payments of 441 each
5.75 of 16800 is 966
semi annual basis, that's 2 payments of 483 each
483-441 = 42
or 84 annually
in this question it is unclear whether you should provide the difference between annual payments or semi annual since the first option involves annual payments.
semi annual basis, that's 2 payments of 441 each
5.75 of 16800 is 966
semi annual basis, that's 2 payments of 483 each
483-441 = 42
or 84 annually
in this question it is unclear whether you should provide the difference between annual payments or semi annual since the first option involves annual payments.