A payday loan is structured to obscure the true interest rate you are paying. For​ example, in​ Washington, you pay a $30 ​"fee" for a​ two-week $200 payday loan​ (when you repay the​ loan, you pay $230​). What is the effective annual interest rate for this​ loan?   ​(Assume 26​ bi-weekly periods per​ year.) The effective annual interest rate is _________________% %.​(Round to two decimal​ places.)

Q: C) A homebuyer approached the bank for a home loan of RO 87,000. The bank has approved the loan…

A: As per company policy it is only possible to solve the first question.

Q: What is the APR on this loan?

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing.…

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: You have approached your bank for a 30 year mortage loan in the sum of $2,160,000. The bank has…

A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…

Q: Suppose you take out a loan for 160 days in the amount of $14,000 at 7% ordinary interest. After 40…

A: The interest amount is computed by multiplying the amount of the loan with the interest rate and the…

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Loan Amount borrowed= $1,000 Monthly payment = $108 Time period = 12 months

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Annual percentage rate is the interest rate paid in a year on loan amount or on investment. It is…

Q: Prepare an amortization schedule for a three-year loan of $93,000. The interest rate is 8 percent…

A: Loan amount (PV) = $93000 Interest rate (r) = 8% Number of annual payments (n) = 3

Q: A radio commercial for a loan company : “You only pay 30 cents a day for each $ 500 borrowed.” If…

A: For $500 borrowed amount you pay = 30 cents each day For $2570 borrowed amount you pay =…

Q: (a) Suppose a credit card company charges a monthly interest rate of 1.8%. What APR must the company…

A: APR stands for annual percentage rate. It is the rate at which the lender charges the borrower.…

Q: s out a loan with monthly payments of €500 for a period of four years with first payment made today.…

A: The given problem can be solved using PV function in excel. PV function computes loan amount for…

Q: NAB offers a car loan that will require you to pay 8% per annum, compounded weekly. Which of the…

A: Effective annual rate is the equivalent rate in comparison with the interest rate that is compounded…

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: In this case, first, we have to calculate the biweekly interest rate and then we have to calculate…

Q: How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by…

A: Effective Annual Interest Rate: It is the interest rate adjusted over a period for the effects of…

Q: You have $1000 in an account earning 4% APR compounded daily.  At the same time, you are to pay a…

A: Interest rate compounded daily is 4% Amount in account(PV) is $1000 Amount needs to pay in future…

Q: Come and Go Bank offers your firm a discount Interest loan with an interest rate of 10 percent for…

A: Effective annual interest rate(ear) is the actual rate of return that is earned/ paid on loan…

Q: Assuming that the interest is the only finance charge, how much interest would be paid on a 5,000…

A: Interest is the amount paid on a loan by the borrower to the lender above the principal amount to…

Q: A print shop borrows $2900 from a credit union for 231 days. The credit union charges simple…

A: Borrowed amount = $2,900 Time Period = 231 Days Interest Rate = 8.25%

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: (1). We, have to find the two week interest rate and that there are 26 two week periods in one year.…

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed. The APR is usually…

Q: find i (the rate per period) and n (the number of periods) for each loan at the given annual rate.…

A: Calculation of Number of periods and monthly interest rate: Answer: Number of periods is 48 monthly…

Q: You are to repay a loan of $3600.00 with 17 quarterly repayments of $240.00, with the first…

A: Given  Loan = $3600 Number of payment = 17 PMT = $240 Interest rate = 7.8390% quarterly compounded…

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Loan Amount  = $1,000 Monthly payment = $108 Time Period = 12 months

Q: pital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: "If you borrow $9,725 and are required to repay the loan in five equal annual installments of…

A: Using financial calculator

Q: A car loan of ​$19,055.04 is to be repaid with​ end-of-month payments of ​$369.28. If interest is…

A: When money is given to another party in return for repayment of the loan principal plus interest, it…

Q: Arif has to pay RM 200 at the beginning of each month for 36 months to settle a loan at 12%…

A: Original amount of loan means the principal amount which is being taken by the borrower from the…

Q: You plan to apply for a loan from Bank of Kuala Lumpur. The nominal annual interest rate for this…

A: The EAR is the actual rate of return earned over a period after taking the compounding periods into…

Q: Consider a conventional fixed-rate 30-yr loan for 100,000 at 10%. a. What is the total payment and…

A: Answer -   Here's the formula to calculate EMI: where E is EMI P is Principal Loan Amount   The…

Q: The Mutt Hut Pet Shop borrowed $59,000 on March 1 for 132 days. The rate was 11% using the ordinary…

A: Given information:   Amount borrowed $59,000 Interest rate 11% loan term  132 days First…

Q: SunBlush Technologies takes out a $16,000 loan that charges 5.25% interest compounded semi-annually…

A: Loan and its repayments: A loan taken out can be repaid in equal periodic instalments over the loan…

Q: At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration Interest…

A: We have to calculate the annual simple interest rate in the first case, when principal and the…

Q: You have just borrowed $120,000 to buy a condo. You will repay the loan in equal monthly payments of…

A: a. Calculate the monthly interest rate as follows: Monthly interest rate is 1.25%

Q: FINCORP has two debtors who each make a $10, 000 purchase. Debtor 1 pays their account in 10 days,…

A: For the purpose of increase the sales of the company, a scheme launched by the companies of credit…

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: Answer- Step 1 - Calculation of r -  r = (FV/PV)^(1/n) - 1 Given, FV = 230 PV = 200 n = 1   Putting…

Q: A loan shark lends you $90 at 2% compound interest per week (this is a weekly, not an annual rate).…

A: a) Future value of $90, at a weekly interest rate of 2% or 0.02 and number of periods of 104 (…

Q: Determine the APY you would pay using an equation.  The APY paid would be   % per year.

A: Annual percentage yield (APY) refers to a yield or real interest rate which an investor is expect…

Q: Dinero Bank offers you a $39,000, 8-year term loan at 7 percent annual interest. Required: What will…

A: Annual loan payment = (Loan amount x r)/[1 - (1 + r)-n]

Q: From a bank, an engineer borrows $18000 that is to be repaid in 2 years with end-of-month payments…

A: Using the rate function in excel

Q: The annual interest rate on a credit card is 16.99%. If a payment of $400.00 is made each month, how…

A: Credit Card is short-term debt instrument which allows cardholder to make credit purchases and make…

Q: A lender requires PMI that is 0.7% of the loan amount of $490,000. How much (in dollars) will this…

A: Working note:

Q: Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent…

A: given, EAR= 14.2%M = 365

Q: Suppose you take out a loan for $6,000, at 12% ordinary interest. If the amount of interest is $672,…

A: The question is based on the concept of Business Fianance.

Q: Mr. Bean wants to borrow $9,100 for three years. The interest rate is 7.1% compounded monthly. a.…

A: Installment loan is the debt which is discharged by making annuity payments consisting of two…

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…