12.) Find the simple interest on a loan of P65,000.00 if the loan is given at a rate of 8% and is due in 6years and 3 months.A. $3,250.00C. P32,500.00B. P31,200.00D. P46,800.00

Simple interest is the interest paid on a principal balance for a given period of time at a…

Answered: 12.) Find the simple interest on a loan…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 5PROB

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Define each of the following loan terms, and explain how they are related to one another: the prime rate, the rate on commercial paper, the simple interest rate on a bank loan calling for interest to be paid monthly, and the rate on an installment loan based on add-on interest. If the stated rate on each of these loans was 5%, would they all have equal, effective annual rates? Explain.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual interest rate of 9% a year for 3 months. A 20% compensating balance requirement raised the effective interest rate. a. The nominal annual rate on the loan was 11.25%. What is the true effective rate? b. What would be the effective cost of the loan if the note required discount interest? c. What would be the nominal annual interest rate on the loan if the bank did not require a compensating balance but required repayment in three equal monthly installments?
2. Assuming that you obtain a bank loan for 500,000 with an annual interest payment of 10% of the principal. Compute for the present value under the following independent scenarios: a. Effective rate is 10% b. Effective rate is 8% c. Effective rate is 12%
5. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the borrower owe if the loan is repaid after two years? A. $200 B. $224 C. $224.72 D. $212
1. What is the simple interest due on a 20 days loan of P95,000.00 if the annual rate is 8%.
Compute the simple interest of a loan amounting to P50,000.00 payable in 8 months if the interest rate is 3.5%
An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the loan is 180 days. a. P13,300 b. P13,000 c.P12,600 d. P12,200
1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays monthly payments of $500. a. Calculate the accumulation rate b. Calculate the payment rate . c. Answer : How will the balance of the principal be at the end of the loan in relation to the original amount of the loan? Less, equal or greater? Provide calculations.
Q7. The annual payment of alorry is 40, 000 Euro find out theloan amount which is granted for4 years and the interest rate is8%, prepare an amortizationtable for this loan
Assume a $620,000 loan over a 20 year period at a fixed rate of 5.85%. How much would a borrower save by taking the loan out on a full-capital repayment schedule rather than an Interest Rate basis? a. $164,328.81 b. $327,813.04 c. $0 d. $292,186.96

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12.) Find the simple interest on a loan of P65,000.00 if the loan is given at a rate of 8% and is due in 6 years and 3 months. A. P3,250.00 C. P32,500.00 B. P31,200.00 D. P46,800.00