Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

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 5FPE

See similar textbooks

Related questions

Q: (a) What is the amount (in $) of the monthly principal and interest portion, PI, of Michael's loan?…

A: Cost of condominium = $67,000 Time period = 30 years Interest rate = 5% Down Payment = 20%

Q: Use the amortization table to determine how much interest is paid in the first 4 months of the loan.…

A: The interest in the first 4 months of the loan will be total of interest of month 1, month 2, month…

Q: A finance company uses the discount method of calculating interestThe loan principal is $4,500, the…

A: Discount method is one of the methods to provide a loan. Under this amount loan amount is provided…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Amount Financed = $ 162,300 Interest rate(r) = 7.25% per annum = 7.25%/12 = 0.60416667 % Terms =…

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Interest is the amount charged by bank in consideration of advancing loan to its borrowers. It is…

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

A: Finance Charges =Total Payments - Amount financed

Q: Find the i (the rate per period) and n (the number of periods) for the following loan at the given…

Q: Develop a general-purpose spreadsheet to calculate the balance due, principal payment, and interest…

A: workings:

Q: Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $73,000 at an APR…

A: The PMT function can be used to determine the monthly payments required to pay off a loan within the…

Q: The Loan payoff schedule contains which of the following/s a. annual payment b. All of them

A: A loan payoff schedule is a payment schedule prepared for the loan payments. Whenever a loan is…

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

A: The finance charge is the charge which is paid by the borrower on the amount he borrowed is called…

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

A: When a loan is repaid through equally monthly payment, the monthly payment includes interest and…

Q: (a) What is the finance charge (in $) on the loan? 2$ (b) Use Table 13-1 to find what annual…

A: Finance charge refers to the payment made in addition to the borrowed amount. The finance charge…

Q: calculate the monthly principal and interest, PI (in $),

A: Re-payment of loan consist of payment of principal and interest. Annuity is the payment of fixed…

Q: are the loan department supervisor ban Being paid task to calculate the rebate fraction, the finance…

A: Given information : Amount financed = $4,700 Number of payments = 36 Monthly payment = $165.33…

Q: Find the finance charge for a charge account with an average daily balance of $1213.58 and a monthly…

A: Finance Charge = Average Daily Balance x Monthly Interest rate

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

A: Using excel Rate function

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

A: Loan amount (L) = $13000 Number of payments (n) = 36 Monthly payment (M) = $454 Let r = Monthly rate

Q: Determine the following: The rate of simple interest. The corresponding discount rate.

A: Simple Interest: It is the interest amount calculated by charging the interest rate on the…

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: monthly

A: I would borrow a loan that is amortized quarterly. The reason for this is based on the principles…

Q: Calculate the table factor, the finance charge, and the monthly pay $) for the loan by using the APR…

A: In this we have to find out monthly interest rate and present value FACTOR and get monthly payment…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Using excel Rate function

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

A: AMOUNT FINANCED = $17.910 NO OF PAYMENT = 48 MONTHLY PAYMENT = $550.47 TOTAL PAYMENT = $550.47 x 48…

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: a) What is the rebate fraction of a 36 month loan paid off after the 15th payment?

A: Solution: (a). Loans paid off after 15 th payment. Number of payments remaining = 36 - 15 = 21 Total…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Given: Amount Financed - $18,500 Number of payments Payment = 72 Monthly payment = $426.08 APR = ?

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

A: Finance charge is an extra payment paid on borrowed amount for the period. It is the expense and…

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: Amount Rate Time $63,000 12% 3 years table of monthly payments on a $1,000…

A: Loan amount (PV) = $ 63000 Annual interest rate = 12% Monthly interest rate (R) = 12%/12 = 1%…

Q: Find the following. (Round your answers to the nearest cent.) Finance Charge Number of Payments…

A: Finance charge is an additional amount which is paid on borrowed amount. It is expenses for the…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The finance charge is that charge which is paid by the borrower on the amount borrowed.

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: Find the length of the loan in months, if $500 is borrowed with an annual simple interest rate of 3%…

A: Compound Interest: Compound interest is interest computed on a loan or deposit depending on both the…

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

A: Here, Amount Finance is $8,800 Number of Payments is 36 APR is 11%

Q: With loans, spreadsheets make it easy to _____. (can be more than 1 of the options listed below) a.…

A: Loan is a value which is borrowed from the other sources like banks and this amount is repaid later…

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

A: Amount financed. $17950 No of payments = 48 Monthly payments =$561.47 Total Payments for 48…

Q: ( A)What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is…

A: Rebate fraction can be calculated by using this equation Rebate fraction =Sum of digit of remaining…

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

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

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

A: Monthly Payment is equal to the sum of Amount Financed and Finance Charge divided by the number of…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Select the correct choice that completes the sentence below.
The rebate amount is equal to the rebate fraction
O A. multiplied by the total finance charge
O B. multiplied by the number of months of a loan
OC. divided by the number of weeks of the loan
O D. divided by the total interest

Expert Solution

Introduction

Rebate is a term used in short-selling, which is selling securities that a trader does not own. In order to sell a stock that isn't owned, the trader must borrow the stock in order to deliver it to the buyer. When an investor places a short sale trade, that individual must deliver the stock to the buyer on the trade settlement date.

Trending now

This is a popular solution!

Step by step

Solved in 2 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, finance and related others by exploring similar questions and additional content below.

Similar questions

Please include the excel formula If the following is a loan, identify a) the principal amount, b) the monthly interest rate, and c) the length of the loan in months. Determine if the following situation is an investment or a loan. If the following is an investment, identify a) if it is a one-time or recurring investment, b) the number of compounding periods per year and c) the total number of compounding periods. If the following is a loan, identify a) the principal amount, b) the monthly interest rate, and c) the length of the loan in months. Ashtyn purchased new appliances for her house for a total of $5,744. The store she buys the appliances from offers an annual simple interest rate of 8.5% with no down payment and monthly payments for 3 years. This situation represents a(n) . a) b) c) What will be your monthly payments? Use Excel to calculate the value.
The following loan was paid in full before its due date a) Find the value of h using an appropriate formula b) Use the actuarial method to find the amount of unearned interest c) Find the payoff amount Regular Monthly Payment # of Payments Remaining after Payoff APR 7.2% $247 8 What is the finance charge per $100 financed? h=$ (Round to the nearest cent)
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.)
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% $ $ $
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.)
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 $8,800 36 11% $ $ $288.10
Find the finance charges on a 5 percent, 18-month, $1,000, single-payment loan when interest is computed using the simple interest method. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places. % Find the finance charges on the same loan when interest is computed using the discount method. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places. %
Find the payment necessary to amortize a 7% loan of $2200 compounded quarterly, with 6 quarterly payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated quarterly payments. Then create an amortization table to find (c) the total payments and total amount of interest paid based upon the amortization table. a. The quarterly payment needed to amortize this loan is $ b. The total amount of the payments is $ The total amount of interest paid is $ c. The total payment for this loan from the amortization table is $ The total interest from the amortization table is $ Keep getting it wrong when I reach point b... need help thx
Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,300 10.4 __________ DAYS $227
Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan.
Reya paid Php 9,250 on a loan made 6 months before at 12% simple interest. Find the interest generated.What is the rate of interest?What is the future value?What is the term of the loan?What is the principal in the problem?
Construct a differential equation for the changing mortgage balance. (Equation Must include r, A, P, and dA/dt)Relevant information: monthly mortgage payment (M) is composed of taxes and insurance (TI), and principle and interest (P). So, M=TI + P (TI goes into escrow account). Mortgage rate, r, is APR divided monthly (0.05/12). t is time in months, A(t) is the mortgage balance after t months of payments. the rate of change of A(t) is the difference between interest incurred and P (the portion of the monthly payment that does not go into Escrow account).