Carlos Is the New Assistant Branch Manager of a Larger

question 183

Essay

Carlos is the new assistant branch manager of a larger Florida-based bank and the branch manager has asked him a question to test his knowledge.The question is which rate should the bank advertise on monthly-compounded loans,the nominal annual percentage rate or the effective annual percentage rate? Which rate should the bank advertise on quarterly-compounded savings accounts? Explain.As a consumer,which would you prefer to see and why?

---

Definitions:

Business Exists

The state or condition of being actively engaged in a trade or enterprise, often marked by the pursuit of profit.

4 Ps

A framework in marketing that categorizes the mix of Product, Price, Place (distribution), and Promotion strategies.

Customers Reached

The total number of potential or actual customers who come into contact with a particular marketing message or campaign.

Brand Strategy

A long-term plan to develop a successful brand; it involves how you plan to communicate your brand messages to your target customers.