Sally lends 5,000 to Tim. Tim agrees to pay back the loan over 10 years with monthly pay- ments payable at the end of each month. Sally can reinvest the monthly payments from Tim in a savings account paying interest at 12%, compounded monthly. The yield rate earned on Sally's investment over the five-year period turned out to be 6%, compounded annually. What nominal rate of interest, compounded monthly, did Sally charge Tim on the loan? (A) 1.8% (B) 2.0% (C) 2.2% (D) 2.4% (E) 2.6%

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A: Monthly Compounding Loan Amount = 50,000 Time Period of loan = 8 years or 96 months Interest rate =…

Q: George buys a car every 6 years for P18,000. He trades in his current car to count as the 20%…

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Q: ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at…

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Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

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A:

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A: Computation:

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Q: he annual interest rate on the loan is

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A:

Q: The Flemings secured a bank loan of $328,000 to help finance the purchase of a house. The bank…

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