You borrow $5,000 and have to pay $5,300 six months later. Calculate the effective annual rate of this loan.

Q: $5000 that you have to pay in 7 annual installments of $1100 each, the first one at the end of the…

A: The given problem relates to RATE function in excel. RATE function computes interest rate for no. of…

Q: A car loan for $19,500 has an interest rate of 4.25% and is amortized over 60 months.  What is the…

A: Monthly payment of loans is popularly also known as EMI ( Equated Monthly Installments) which is a…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: Suppose you buy a $40,000 car and you 'put down' $5,000 and finance the rest for 72 months at 3.75%…

A: Solution:- When a loan is taken, the amount can be repaid as a lump sum payment or in instalments.…

Q: You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24 equal…

A:

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…

A: The future value of an amount is the future worth of an amount calculated based on the time value…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly…

A: We can calculate the effective annual interest rate by applying the required formula taking the loan…

Q: The going annual interest rate for a loan with a term of 30 years is 6% compounded monthly. The…

A: Going interest rate is the interest rate that is prevailing in the market for loans or bonds. It is…

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

Q: You want to borrow $73,000 from your local bank to buy a new sailboat. You can afford to make…

A: Given information: Present value is $73,000 Monthly payment of $1,450 Number of periods is 60

Q: You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: How much interest is payable each year on a loan of $4,000 if the interest rate is 10% (simple…

A: Following is the answer to the given questions

Q: Suppose you wanted to buy a $200,000 house. You have $30,000 cash to use as the downpayment. The…

A: Given PV = amount of loan = 200000-30000 = $ 170000 r = rate of interest = 6/12 = 0.05 n = number of…

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: To calculate the monthly payment amount we will use the below mention formula   Monthly payment =…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: For determination of equal monthly payment(PMT), we need to use loan amortisation formula below. PMT…

Q: You have taken out a loan that requires you to repay $200 per month for 10 years at 12% annual…

A: Given:

Q: You want to borrow $94,000 from your local bank to buy a new sailboat. You can afford to make…

A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: Given Information: Quarterly payment = 10,000 Annual interest rate = 6% Number of years payment made…

Q: You borrow $8,000 at an annual rate of 21%. If you repay the debt in three months, what do you owe?

A: In this question we require to calculate the amount we owe if we borrow $8000 and repay it in 3…

Q: Gizmonic Institute Corp. needs to take out a one-year bank loan of $400,000 and has been offered…

A: Bank loan = $400,000 Simple interest rate = 9% Add on interest rate = 6%…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…

A: Given information : Borrowed amount $10,000 Interest rate 12% Time period (years) 3 Note :…

Q: A personal loan for $20,000 has an interest rate of 12% over 5 years with monthly payments. What is…

A: Equated Monthly Instalment(EMI) means a part of the equally divided monthly amount paid for the…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: The loan amount is $26,100 The monthly payment is $989 The total finance charge is $9,504 The loan…

Q: You are buying vehicle for $20,000 and are paying $2,000 as a down payment. You have negotiated a…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: A local finance company quotes an interest rate of 16.7 percent on one-year loans. So, if you borrow…

A: Given  Loan amount = $25000 Interest = $4175pa Number of months = 12 months PMT = $2,431.25…

Q: You are going to buy new machinery worth$36,200. The dealer computes your monthly paymentto be…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: You borrow $100,000 from a bank for 30 years at an APR of 10.5%. What is the monthly payment? If you…

A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer the first question…

Q: A new furniture set costs $ 2700. If you make a down payment of $ 300 and finance the rest at a rate…

A: The amount of repayment is the number of installments multiply by the installment amount. and the…

Q: You have borrowed $14,300 at a compound annual interest rate of 15 percent. You feel that you will…

A: given, p= $14300 pmt = $3000 r=15%

Q: A borrower had a loan of $70,000.00 at 6% compounded annually, with 8 annual payments. Suppose the…

A: The question is based on the concept of Loan & Amortization.

Q: A $2,000 furniture can be financed by paying $50 per month for 4 years. What is the annual nominal…

A: Nominal Interest Rate:It is the rate of interest which calculates before taking inflation. It…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: 1.Amount of Loan pay off is $7975 2.Amount of Finance Charges rebate is $2882   Calculations :-…

Q: Suppose we need to make 10 end-of-year payments of $5, 000 to pay off a loan. Assuming the rate of…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: If you borrow $9,983 and are required to pay back the loan in five equal annual installments of…

A: Loan is an agreement between lender and borrower where lender provide funds to borrower for definite…

Q: To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded…

A: Loan amount  $       42,000.00 Interest Rate 7.50% Time Period(Years) 5

Q: a bank will lend a landlord 10,000 TL. The debt has to be paid back in 24 months with monthly…

A: Loan is contract between lender and borrower where lender provide funds to borrower for definite…

Q: We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Calculate the effective annual interest rate being charged for the loan.

A: Effective Annual Interest Rate EAR = (1+in)n -1 where: i=Nominal interest rate n=Number of periods​…

Q: If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you…

A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan payoff will be the closing balance at the end of 25 months