11. A $300,000 mortgage loan is secured which is to be paid with equal monthly payments over
20 years. The monthly payments can be calculated using which of the following expressions
if the interest rate is fixed at 6% per year compounded monthly?
(a) $300,000 (A/P, 6%, 20)
(b) $300,000 (A/P, 0.5%, 20)
(c) $300,000 (A/P, 0.5%, 240)
(d) $300,000 (A/P, 6%, 240)
A nominal interest rate of 12% compounded monthly is equivalent to an annual effective
interest rate of
(a) 18.00%
(b) 01.00%
(c) 12.00%
(d) 12.68%