The First Bank of Lending lists the following APR for loans. Determine the APY, or effective interest rate, for a loan amount that is between $20,000$⁢20,000 and $99,999$⁢99,999. Round your answer to the nearest hundredth, if necessary.   First Bank of Lending Loan APR Loan Amount APR* <$20,000<$⁢20,000 12.25%12.25% $20,000–$99,999$⁢20,000–$⁢99,999 9.99%9.99% >$99,999>$⁢99,999 6.75%6.75% * interest rates are compounded daily

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

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

A: in this we have to calculate financial charges and we have to use given table.

Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…

A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…

Q: Find the annual financing cost (AFC) or a 30 day line of credit where the bank requires a 10%…

A: *Answer:  Data given: Loan amount                     =$214,296 Interest rate…

Q: The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given…

A: Interest rate = 10.5% Initial balance = $150  Number of days = 1-3 is 3 days Number of days = 4-20…

Q: Straight bank loan. Right Bank offers EAR loans of 9.07% and requires a monthly payment on all…

A: Using excel PMT function to calculate monthly payment

Q: Straight bank loan. Right Bank offers EAR loans of 9.44% and requires a monthly payment on all…

A: The amount of loan repayment which is required to be paid on a monthly basis is known as monthly…

Q: Snowflake Manufacturing [SM] has recently come to the bank you work for looking for a $280,000…

A: Financial ratios help to measure the company's solvency, liquidity, profitability and overall…

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: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: Solution Rate (in %) for the loan = Interest / principal amount * 360/ days of loan

Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…

A: Effective annual interest rate is the interest rate which an investor expects in a year after taking…

Q: Bank A offers a 272-day discounted loan at a simple discount rate of 12%. i. How much money would a…

A: Given, Simple discount rate = 12% Discounted loan days = 272

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: 1.What is the effective interest rate of a simple discount note for $4,500 at a bank discount rate…

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

Q: Good Deal Bank offers your firm a discount interest loan at 7.75% for up to $25 million and, in…

A: Amount of Loan = $25 million Interest rate = 7.75% Compensatory Balance = 5%

Q: Come and Go Bank offers your firm a discount Interest loan with an interest rate of 10 percent for…

A: Effective annual interest rate(ear) is the actual rate of return that is earned/ paid on loan…

Q: Consider a credit card with a balance of $7000. You wish to pay off the credit card in each…

A: Credit balance = $7,000 There are 2 interest rates and time duration  1. APR is 17.99% and time is 1…

Q: e effective rate of interest of the loan?

A: Effective interest rate is calculated as follows; r = (1 + in)n -1 wherer - effective annual ratei -…

Q: Good Deal Bank offers your firm a discount interest loan at 7.75% for up to $25 million and, in…

A: Loan amount = $25 million Interest Rate = 7.75% Compensating Balance =5% Interest Amount = 25*7.75%…

Q: You have recently seen a credit card advertisement that states that the annual percentage rate is…

A: The effective annual rate can be calculated as per the formula of EAR

Q: Chuong Ngo borrows $3200 from a bank that advertises a 8% simple interest rate and repays the loan…

A: Given: Borrowed amount = $3,200 Simple interest = 8% Monthly payments =4

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: Find the amount of interest (in $) on a loan of $6,000, at 5% interest, for 80 days using the exact…

A: Under the ordinary interest method, the number of days in a year is assumed to be 360, but under the…

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: PayDay Loans is offering a special on one- year loans. The company will loan you $5, 000 today in…

A: In the given question we require to calculate the Annual Percentage Rate on the following loan: Loan…

Q: Assume you take out a car loan of $8,600 that calls for 48 monthly payments of $300 each.   a.…

A: Annual Percentage Rate(APR) is the specified rate of interest charged by any of the authorizing…

Q: Cerise Company would record a note payable of_____, if the terms of the loan with a bank are as…

A: Present value (PV) of an future amount is equal amount of such at present, discounted at a…

Q: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: We need to use ordinary interest formula to solve this problem Simple/ordinary interest…

Q: Straight bank loan. Left Bank has a standing rate of 7.9% (APR) for all bank loans and requires…

A: As you have posted multiple questions, we will solve the first question for you. To get remaining…

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

A: Rate can be calculated using Rate function in excel. =RATE(nper, pmt, pv, [fv], [type], [guess])…

Q: At a payday lending company, a loan of $500 will accrue interest as follows: Loan Duration Interest…

A: We have to calculate the annual simple interest rate in the first case, when principal and the…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Exact interest: Interest = Principal * Interest rate Interest = $136,000*7.30%*64/365 Interest =…

Q: If a 9-month term deposit at a bank a simple interest rate of 9% per annum, how much will have to be…

A: Simple Interest is the interest amount calculated on the principal amount to the savings account.

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Credit card is a facility provided by the credit card companies to its customers in which customer…

Q: A bank has agreed to lend you $127,800 for a home loan. The loan will be fully amortized over 57…

A: Amortization is a term used in business to describe the process of spreading payments out over time.…

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: Dinero Bank offers you a $39,000, 8-year term loan at 7 percent annual interest. Required: What will…

A: Annual loan payment = (Loan amount x r)/[1 - (1 + r)-n]

Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…

A: The annual percentage rate (APR) is the percentage rate that shows the interest rate calculates on…

Q: If 200 depositors withdraw at t=1, what is the amount of loan the bank needs to sell (in $ of…

A: Loan is the amount of money which a lender gives or provides to the borrower who has the surplus…

Q: Hi there, quick question. For an loan with a capital amount of 2500, initiation fee of 315,…

A: Loan is a facility to borrow certain amount of money from the banks and financial institutions at…

Q: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: Solution- To find rate we use the formula-A=Prt1+rtWhere,P=Principalt=Timer=RateA=P+I

Q: Navy Bank requires borrowers to keep a 13 percent compensating balance. Gorman Jewels borrow…

A: Interest = amount borrowed x rate of interest = $380000 x 6% = $22800

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…

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.