Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $77,000 at an APR of 7% which will be paid off with monthly payments of $562 for 23 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $77,000 The annual interest rate is 7% The number of payments per year is 12 The number of payments per the loan term is 23 year And the payment amount is $562
Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $77,000 at an APR of 7% which will be paid off with monthly payments of $562 for 23 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $77,000 The annual interest rate is 7% The number of payments per year is 12 The number of payments per the loan term is 23 year And the payment amount is $562
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...
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- Consider the following loan. Complete parts (a)-(c) below.
An individual borrowed $77,000 at an APR of 7% which will be paid off with monthly payments of $562 for 23 years.
- Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.
The amount borrowed is $77,000
The annual interest rate is 7%
The number of payments per year is 12
The number of payments per the loan term is 23 year
And the payment amount is $562
- How many total payments does the loan require? What is the total amount paid over the full term of the loan?
There are ___ payments toward the loan and the total amount paid is _____
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