Chapter 5 Problems 4 10 22 304. You have found three investment choices for a o

Chapter 5 Problems 4 10 22 304.
You have found three investment choices for a one-year deposit: 10% APR
compounded monthly 10% APR compounded annually and 9% APR compounded
daily. Compute the EAR for each investment choice. (Assume that there
are 365 days in the year.)10. Oppenheimer Bank is offering a
30-year mortgage with an EAR of 5 3/8%. If you plan to borrow $150000
what will your monthly payment be?22. You have credit card debt
of $25000 that has an APR (monthly compounding) of 15%. Each month you
pay minimum monthly payment only. You are required to pay only the
outstanding interest. You have received an offer in the mail for an
otherwise identical credit card with an APR of 12%. After considering
all hour alternatives you decide to switch cards roll over the
outstanding balance on the old card into the new card and borrow
additional money as well. How much can you borrow today on the new card
without change the minimum monthly payment you will be required to pay?30.
Your best taxable investment opportunity has an EAR of 4%. Your best
tax-free investment opportunity has an EAR of 3%. If your tax rate is
30% which opportunity provides the higher after-tax interest rate?