Please calculate: What is the PER, APR and the EAR for a $15,000, 9 month (short term), where the stated rate is 6% 1.Use the simple interest calculation PER APR EAR 2. Use the discount intere loan method PER

Please calculate: What is the PER, APR and the EAR for a $15,000, 9 month (short term), where the stated rate is 6% 1.Use the simple interest calculation PER APR EAR 2. Use the discount intere loan method PER

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

See similar textbooks

Related questions

Q: Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not…

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

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on…

A: Formula: Finance charge = Amount financed x add on interest x ( 30 / 12 ) Monthly payment = [ (…

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: The conceptual formula used:

Q: You are considering a car loan with a stated APR of 6.78% based on monthly compounding. What is the…

A: Effective annual rate is the rate of interest that actually paid or earned. It can be calculated by…

Q: A loan is offered with monthly payments and a 8.50 percent APR. What's the loan's effective annual…

A: Effective annual rate is the rate that is actually earned. It can be calculated Effective annual…

Q: Find the APR(true annual interest rate) to the nearest half percent for the following loan.Use the…

A: Annual Percentage Rate = Finance Charge / Amount Financed

Q: The following loan is a simple interest amortized loan with monthly payments. (Round your answers to…

A: Using excel PMT function

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Amount Financed =$6,600 Number of Payments(n) = 36 APR = 11% r = 11%/12 = 0.9167% Monthly Payment =…

Q: Find the APR (true annual interest rate), to the nearest half percent, for the following loan.…

A: APR FORMULA: APR =interestprincipaln×365×100 where, n = no of term of loan in days

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: We will use the future value calculator with given variables to find out the required information…

Q: The following installment loan is being paid off early. Calculate the rebate fraction, the finance…

A: The finance charged is the total cost that has charged for borrowed the specified amount for…

Q: Find the APR (true annual interest rate), to the nearest half percent, for the following loan.…

A: Formulas:

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: The following loan was paid in full before its due date. a) Find the value of h using an appropriate…

A: Given: APR = 8.7% Regular Monthly Payment = $214. Number of payments after Payoff (n) =4

Q: The following loan is a simple interest amortized loan with monthly payments. $155000, 9 1/2%, 30…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: The following loan is a simple interest amortized loan with monthly payments. (Round your answers to…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: A lender requires PMI that is 0.8% of the loan amount of $470,000. How much (in dollars) will this…

A: Working note:

Q: Use the add-on method of caloulating interest to find the total intorest and the monthly payment.…

A: The value of the money varies with time, and therefore it shows the value of a rupee at different…

Q: Find the amount of interest (in $) on a loan of $4,000, at 5% interest, for 70 days using the exact…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Given a $5,000 loan at 8% for 90 days, compare the interest accrued using the standard method (365…

A: calculate interest under standard method Interest = ($5,000 / 300) * 85 * 90 /365) Interest =…

Q: Using the APR table, how much interest would be charged for a $10,000 loan at 12.5% for 3 years?…

A: Computation of finance charge:

Q: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on…

Q: Calculate the simple interest due on a 3-month loan of P 1400.00 if the interest rate is 7.5%

A: Simple Interest : The simple interest is calculated by using the following formula & information…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The borrowers get charged an annual rate of interest known as the Annual percentage rate (APR) which…

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: amount financed = $50,000 no of payment = 60 monthly payment = $1,176.33 total payment = 60 x…

Q: alculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Monthly Payments is the equivalent monthly annuity amount calculated for the loan borrowed for…

Q: from the table of loan installment below, if flat rate per month isn't 1.0022% but equal to 1.0000%…

A: Monthly Flat interest rate is 1.0000% Here; Number of periods is 12. To Find: Effective Annual…

Q: Find apr of the loan given the amount of the loan, number and type of payments and the add on…

A: The annual percentage rate would be providing the information as to what is the cost of borrowing…

Q: E Loan Amount Is $430,000 Loan is a 7/30 Balloon Loan Annual Interest Is 3.75%, with monthly…

A: Given, Loan amount is $430,000 Interest rate is 3.75% Loan is 7/30 balloon loan, which means, after…

Q: SOLVE FOR THE FOLLOWING: Finance Charge = $ Finance Charge per $100 = APR =________________ %

A: in this we have to calculate financial charges after deductions of principal amount payment.

Q: Develop the table below by comparing the monthly pay- ments for a $200,000 mortgage loan with an…

A: When time is 100 years N = 100*12, FV = 0, PV = 200,000, rate = 8%/12 use PMT function in Excel…

Q: If you borrow $1,000 at 8.5% simple interest and the loan requires a lump sum payment of $1,235.79,…

A: Future value = Principal + Simple interest Simple interest = Principal * Rate of interest * time

Q: e the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR…

A: In this we need to determine the present value factor monthly and from that we can find out monthly…

Q: (1) A 5-year auto loan for $20,000 has monthly payments at an 8% nominal annual rate. If the…

A: Annual percentage rate (APR) refers to the annual interest rate charged to borrowers or investors.…

Q: Find the finance charges on an 8.4 percent, 18-month, $1,000, single-payment loan when interest is…

A: The charge paid to an investor or a fund provider for borrowing money is known as a finance charge…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Annual percentage rate is the interest rate charged annually on the loan amount by the lender and…

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: Purchase a living room set for $3,700 at 10% add-on interest for 3 years.

A: Information Provided: Amount = $3700 Interest rate = 10% Term = 3 years

Q: If you borrow $1,000 at 8.5% simple interest and the loan requires a lump sum payment of $1,213.16,…

A: Interest on Loan = $1,213.16 - $1,000 Interest on Loan =$ 213.16

Q: Assume that you take out a $2000 loan for 30 months at 9% APR. What is them onthly paym ent? (Round…

A: The present value of all the monthly payments discounted at the interest rate charged under the loan…

Q: loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate…

A: Effective Annual Rate = [(1+ Annual Periodic rate /n)n] -1 Annual Periods = 12 months

Q: Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below. Purchase…

A: Given, Purchase price $4280 Down payment $350. So, the price paid is $4,280-$350=$3,930

Q: Investigate the effect of the term on simple interest amortized auto loans by finding the monthly…

A: Loan Amount =$10,000 Interest rate = 678% = 558%=6.875%

Q: lender requires PMI that is 0.7% of the loan amount of $560,000. How much (in dollars) will this add…

A: PMI stands for Purchasing Manager’s Index. It is an indicator of activities of a business. It is…

Question

Please calculate:
What is the PER, APR and the EAR for a $15,000, 9 month (short term), where the stated rate is 6%
1.Use the simple interest calculation
PER
APR
EAR
2. Use the discount interek loan method
PER
APR
EAR

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $
What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use the formula method.
Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below. Purchase Price Down Payment Add-On Interest Rate Number of Payments $4280 $350 2.8% 12 The APR for the loan amount is?
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $6,500 36 10% $ $ $
In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $42,000 and the interest rate is 8.50%, the borrower “pays” 0.0850 × $42,000 = $3,570 immediately, thereby receiving net funds of $38,430 and repaying $42,000 in a year. a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 18.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
If you borrow $9000 at an annual percentage rate (APR) of r (as a decimal) from a bank, and if you wish to pay off the loan in 3 years, then your monthly payment M (in dollars) can be calculated using: M = 9000 (er/12-1) / 1 - e-3r 1) Describe what M (0.035) would represent in terms of the loan, APR, and time. 2) If you are only able to afford a max monthly payment of $300, describe how you could use the above formula to figure out what the highest interest rate the bank could offer you and you would still be able to afford the monthly payments. In addition, determine the maximum interest rate that you could afford.
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $50,000 60 $1,176.33 $ $ %
A lender requires PMI that is 0.7% of the loan amount of $490,000. How much (in dollars) will this add to the borrower's monthly payment? (See Example 4 in this section. Round your answer to the nearest cent.)
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,950 48 $551.47 $ $ %
Find the APR (true annual interest rate), to the nearest half percent, for the following loan. Amount Financed Finance Charge Number of Monthly Payments $1700 $96 18 LOADING... Click the icon to view the annual percentage rate table. Question content area bottom Part 1 The annual percentage rate is enter your response here%.
Find the APR(true annual interest rate) to the nearest half percent for the following loan.Use the Annual Percentage Rate table if necessary. Financed =$2400 Finance Charge =$90 Number of Monthly Payments =12 Please show step by step solution
Develop the table below by comparing the monthly paymentsfor a $200,000 mortgage loan with an 8.00% APRcompounded monthly.