Question 3. Attached is a similar question with answers Straight bank loan. Left Bank has a standing rate of 7.9% (APR) for all bank loans and requires monthly payments. What is the monthly payment if a loan is for (a)$110,000 for 5 years, (b) $270,000 for 11 years, or (c) $1,150,000 for 25 years? What is the effective annual rate of each of these loans? Straight bank loan. Left Bank has a standing rate of 8.2% (APR) for all bank loans and requires monthly payments. What is the monthly payment if a loan is for (a)$150,000 for 4 years, (b) $260,000 for 10 years, or (c) $1,500,000 for 24 years? What is the effective annual rate of each of these loans?(a) What is the monthly payment if a loan is for $150,000 for 4 years?$ 3,676.04 (Round to the nearest cent.)(b) What is the monthly payment if a loan is for $260,000 for 10 years?$ 3,182.06 (Round to the nearest cent.)(c) What is the monthly payment if a loan is for $1,500,000 for 24 years?$ 11,927.96 (Round to the nearest cent.)What is the effective annual rate for all three loans?8.52 % (Round to two decimal places.)

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Straight bank loan. Left Bank has a standing rate of 7.9% (APR) for all bank loans and requires monthly payments. What is the monthly payment if a loan is for (a) $110,000 for 5 years, (b) $270,000 for 11 years, or (c) $1,150,000 for 25 years? What is the effective annual rate of each of these loans?

Straight bank loan. Left Bank has a standing rate of 7.9% (APR) for all bank loans and requires monthly payments. What is the monthly payment if a loan is for (a) $110,000 for 5 years, (b) $270,000 for 11 years, or (c) $1,150,000 for 25 years? What is the effective annual rate of each of these loans?

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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Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
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