Banes Co. wants to borrow $300,000 on an add-on basis at a simple rate of 12.00% to be paid in nine monthly installments. Banes Co. will receive the $300,000 upon approval of the loan and will pay back the principal and interest over the life of the loan. Calculate the monthly interest payment, the monthly principal payment, the approximate annual percentage rate (APR), and the approximate effective annual rate (EAR) of this add-on loan: (Note: Do not round intermediate calculations. Round dollar values to the nearest whole dollar. Round percentages to two decimal places.) Monthly interest payment Monthly principal payment Approximate annual percentage rate (APR) Approximate effective annual rate (EAR) Value

Banes Co. wants to borrow $300,000 on an add-on basis at a simple rate of 12.00% to be paid in nine monthly installments. Banes Co. will receive the $300,000 upon approval of the loan and will pay back the principal and interest over the life of the loan. Calculate the monthly interest payment, the monthly principal payment, the approximate annual percentage rate (APR), and the approximate effective annual rate (EAR) of this add-on loan: (Note: Do not round intermediate calculations. Round dollar values to the nearest whole dollar. Round percentages to two decimal places.) Monthly interest payment Monthly principal payment Approximate annual percentage rate (APR) Approximate effective annual rate (EAR) Value

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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