A bank loan that charges interest at the rate of 1.5% per month would have an...
Jamison Inc. needs to raise $500,000 for a nine-month term. Jamison's bank has offered to lend Jamison the money at a 8.00% simple interest rate. Jamison will receive the $500,000 upon approval of the loan and will pay back the principal and interest at maturity. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan. Value Interest payment Amount of cash received Annual percentage rate (APR) Effective...
Ricky Ripov’s Pawn Shop charges an interest rate of 13.7% per month on loans to its customers. Like all lenders, Ricky must report an annual percentage rate (APR) to consumers. What rate should the shop report? What is the effective annual rate (EAR)? Please help me calculate this problem with a financial calculator
You borrow $500,000 to purchase a home. The bank charges an interest rate of 5.75 percent (APR) and the loan will be paid in equal monthly installments over 30 years. What is your monthly payment? What is the total interest paid over 30 years? How much interest is paid in the first payment? What is the effective interest rate (EAR) on the loan?
8. A bank offers loans for 1.75% interest per month. a. What is the advertised APR for this loan? (5 points) b. What is the effective annual interest rate? (5 points)
Your bank (A) offers you an automobile loan at 12% APR, but the interest rate is going to be compounded monthly. What is the EAR that you will be paying? If another bank (B) offers you a 10% annual rate (APR) and the interest rate is compounded semi- annually. Which of the options will you choose?
4. Two accounts with the same quoted annual interest rate (APR) would have: A) same effective annual rate (EAR) if they have different compounding periods in a year B) same effective annual rate (EAR) ifthey have same compounding periods in a year C) same effective annual rate (EAR) if one compounds the interest more often than the other D) different effective annual rate (EAR) if they have same compounding periods in a year
When you walk into a bank to get a mortgage loan, the interest rate the bank quotes you is called the ______________? APR EAR Yield
Your credit card charges interest of 1.5% per month. The company will quote you an APR of what? 01.5% O 12% O 18% O None of the above.
You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 13.30 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form.
Big Dom's Pawn Shop charges an interest rate of 19 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. a. What rate should the shop report? b. What is the effective annual rate?