Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Question

Question

Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.)

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

We know that APR = loan amount * interest rate/ term of loan

Thus APR =11650 * 10.50/100/ 48= Rs 1223.25/24 = Rs 50.96875 per month

wherein loan amount = Rs 11650

Interest rate = 10.50%

term of loan = 24 months

Add a comment

Answer 2

Similar Homework Help Questions

Using the add-on method, calculate the APR of a loan for $12,450 at 11% for 2...

Using the add-on method, calculate the APR of a loan for $12,450 at 11% for 2 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR 1 %
Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3...

Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.)
Calculate the APR of a loan for $9,825, including loan fees of $230, at 10.5% for...

Calculate the APR of a loan for $9,825, including loan fees of $230, at 10.5% for 6 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR

Calculate the APR of a loan for $9.925, including loan fees of $270, at 12.5% for...

Calculate the APR of a loan for $9.925, including loan fees of $270, at 12.5% for 6 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR
Calculate the APR of a loan for $9,925, including loan fees of $270, at 12.5% for...

Calculate the APR of a loan for $9,925, including loan fees of $270, at 12.5% for 6 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR
Calculate the APR of a loan for $10,050, including loan fees of $320, at 11.5% for...

Calculate the APR of a loan for $10,050, including loan fees of $320, at 11.5% for 3 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.)

To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12...

To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal payments Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places,) % EAR To borrow $1,450, you...
Problem 5-46 EAR of Add-On Interest Loan (LG5-7, LG5-8)

Problem 5-46 EAR of Add-On Interest Loan (LG5-7, LG5-8) To borrow $1,350, you are offered an add on interest loan at 8.7 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.)
To borrow $2,300. you are offered an add-on interest loan at 10.3 percent with 12 monthly...

To borrow $2,300. you are offered an add-on interest loan at 10.3 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

To borrow $950, you are offered an add on interest loan at 9.5 percent with 12...

To borrow $950, you are offered an add on interest loan at 9.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Find Equal Payments $ Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) Find EAR %

Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Homework Answers

Add Answer to:
Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Post as a guest

Earn Coins

Using the add-on method, calculate the APR of a loan for $12,450 at 11% for 2...

Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3...

Calculate the APR of a loan for $9,825, including loan fees of $230, at 10.5% for...

Calculate the APR of a loan for $9.925, including loan fees of $270, at 12.5% for...

Calculate the APR of a loan for $9,925, including loan fees of $270, at 12.5% for...

Calculate the APR of a loan for $10,050, including loan fees of $320, at 11.5% for...

To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12...

Problem 5-46 EAR of Add-On Interest Loan (LG5-7, LG5-8)

To borrow $2,300. you are offered an add-on interest loan at 10.3 percent with 12 monthly...

To borrow $950, you are offered an add on interest loan at 9.5 percent with 12...

Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Homework Answers

Add Answer to: Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...

Post as a guest

Earn Coins

Add Answer to:
Using the add-on method, calculate the APR of a loan for $11,650 at 10.5% for 2...