What is the effective interest rate

Q: Having maxed out one credit card, the consumer is tempted by an offer of a second credit card (from…

A: A loan is a debt amount that represents funds borrowed by one person from another person at a…

Q: You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year…

A: Here, Value of Home is $200,000 Down payment is $20,000 Time Period of Loan is 20 years Interest…

Q: You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to…

A: Market Value of House= $170000 Down Payment= 1/5th Of Market value                        = 1/5 x…

Q: Let's say you showed your friend Cardi all these calculations, and she went, "Man, this is screwed…

A: She can do: a.  Ask her credit card company to shorten the duration of the loan. b. Make her…

Q: Nawal wants to deposit OMR 3250 in a bank; she wants to know in how many years this amount will…

A: Amount to be doubled means invested amount becomes twice of what is invested , Therefore ,  Amount…

Q: Suppose that you withdraw ₱ 1,500.00 from your savings account. Over the weekend, several people…

A: Financial instruments that are primarily designed for investors who aim for short-term investments…

Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…

A: The present value of money is the discounted value of future cash flows. The future value is the…

Q: A friend asks to borrow 455 form you and in return will pay you $58 in one year.  If your bank is…

A: Present value = $55 Interest rate =6% Time =1 year So, Future value = Present value*(1+ interest…

Q: The FFR is an important influence on other interest rates, like those on car loans and home loans,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: James wants to buy a gaming computer priced at $3,774, but he is not able to pay the amount in full.…

A: Price of computer = $3,774 There are 2 cases in this answer  If J chooses to pay 12 months payment…

Q: how long will it take hime to repay the loan?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A friend asks to borrow $50 from you and in return will pay you $53 in one year. If your bank is…

A: Given:

Q: 2. A local bank is offering a promotional deal where if you open a bank account for at least $1000,…

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

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Mark is looking to secure a small business loan.  The first lender is offering 11% compounded…

A: The formula for the effective rate is as follows: Effective annual rate=1+Nominal rateNumber of…

Q: You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs…

A: From Bank's perspective, lending amount is an outflow and annual payments made on loan are inflows.

Q: Eric is taking out an amortized loan for $17,000 to buy a new car and is deciding between the offers…

A: Loan: Loan is the amount of funds taken by a borrower from the bank or any money lender for a…

Q: Shen is taking out an amortized loan for $75,000 to open a small business and is deciding between…

A: Total Loan amount is $75000 Credit Union: Time period  is 9 years Annual interest rate is 10.2%…

Q: A bank is considering offering a loan of $100,000 to a client. If the loan is not offered, then the…

A: EVPI means different between two alternatives on the basis of monetary value. It helps to determine…

Q: You need to borrow $10,000 right now but can repay the loan in 6 months. Since you want to pay as…

A: Simple Interest Loans are the loans in which the interest amount is calculated by multiplying the…

Q: Hak Young has accumulated some credit card debt while he was in college.  His total debt is now…

A: A credit card allows paying for purchases by borrowing funds. The credit card debt should be paid on…

Q: Calculating an APR and EAR​) ​You're in need of some money​ fast, and rather than ask your folks…

A: Given, Pay day loan = $600 Repayment = $668 in 19 days

Q: Your FICO score makes a big difference in how lenders determine what interest rate to charge you.…

A: Formula used for calculating what Edward and Jorge will pay:

Q: Finally, you have decided to buy a car. You are able to negotiate the price down to $12,000. You…

A: given, r = 2.5% n = 3 m =12 p =12000 applying formula for monthly payment:…

Q: Suppose that you withdraw ₱ 1,500.00 from your savings account. Over the weekend, several people…

A: Short-term bond investment is a kind of financial instrument that an individual or group of…

Q: Wants to loan from a certain bank. He asks you for a piece of advice for him to save from the loan.…

A: To analyse the given options, we shall compare the effective interest rate which can be calculated…

Q: What is the amount (in $) of interest on this loan? After making a few "shopping" calls, you find…

A: To find amount of Interest for a loan of $1,100,000 at 14% for 90 days using the ordinary Interest…

Q: A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is…

A: If you deposit amount in a bank, you will reccive interest on such depoisit. Hence your money after…

Q: We really want a new car and want to know if we can realistically afford it but also see how much…

A: Monthly payment is calculated by pmt formula in excel.

Q: They plan to use their $40,000 is savings to cover the closing costs the bank will charge them,which…

A: The solution is based on the following assumption:It is assumed that the sum of amount to be…

Q: The policy at the local pawnshop is to lend up to 35% of the value of the borrower’s collateral.…

A: In this question we need to calculate the maximum amount that John can borrow.

Q: Your FICO score makes a big difference in how lenders determine what nterest rate to charge you.…

A: Given: For Edward: Average credit balance (C) = $ 4000 Monthly rate of interest (r) = 18%/12 For…

Q: Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card offer to pay…

A: given data Dr. Dennis Natali plans to take advantage of 0% interest balance transfer credit card…

Q: Let's say you showed your friend Cardi all these calculations, and she went, "Man, this is screwed…

A: She can do: a. Ask her credit card company to shorten the duration of the loan. b. Make her payments…

Q: Use this information for questions 9 to 12: You are put in charge of starting a credit card business…

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

Q: Hannah is exploring savings options from several different banks and has settled on one of the…

A: The Effective Annual interest Rate (EAR) is the real rate of return earned on an investment after…

Q: You want to buy a house for $250,000.  The bank requires a down payment of 25%.  What is the amount…

A: Given: House cost =$250000Down payment =25%

Q: Zebulon wants to borrow money. He writes a note that guarantees that 360 days from now he will give…

A: Here, Borrowed amount of Zebulon is $1800 Payment after 360 days by Zebulon is $1818 Yolanad sells…

Q: A friend asks to borrow $55 from you and in return will pay you $58 in one year. Ifyour bank is…

A: Loan is an agreement between two persons as borrower and lender in which borrower promises lender to…

Q: A person you trust foresees the need for a loan and suggests that you loan them $2,000 at the end of…

A: Loan is an agreement between lender and borrower. Lender agrees to provide funds t borrower at…

Q: Joe bob wants to buy a car and will need to take out a loan in order to make the purchase. His…

A: Computation:

Q: You are considering taking out a loan from the so-called “Tiger B. Shark” finance company. The…

A: The four- for- five means for every $4 borrowed, $5 has to be repaid.   Weekly interest

Q: need help for D, E, and G please   You are a loan officer at the West Elm Savings and Loan. Mr. and…

A: Interest - Interest is the charge paid/received regularly for borrowing/lending money. Interest is…

Q: Charlie Brown has been shopping around for a loan to finance the purchase of a used car. He found…

A: In order to select the loan with least interest rate, we are required to calculate the interest rate…

Q: You expect to have it $12,000 in one year. A bank is offering loans at 3.5% interest per year. How…

A: Amount available after one year (FV) = $12000 Interest rate (r) = 3.5%