Question

Find the interest rates earned on each of the following. Round each answer to two decimal...

Find the interest rates earned on each of the following. Round each answer to two decimal places.

  1. You borrow $700 and promise to pay back $742 at the end of 1 year.

    %

  2. You lend $700 and the borrower promises to pay you $742 at the end of 1 year.

    %

  3. You borrow $73,000 and promise to pay back $96,064 at the end of 7 years.

    %

  4. You borrow $14,000 and promise to make payments of $3,693.20 at the end of each year for 5 years.

    %

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

Answer a.

Amount borrowed = $700
Amount repaid = $742
Period = 1 year

Using financial calculator:
N = 1
PV = 700
PMT = 0
FV = -742

I = 6%

Annual interest rate = 6.00%

Answer b.

Amount lend = $700
Amount repaid = $742
Period = 1 year

Using financial calculator:
N = 1
PV = -700
PMT = 0
FV = 742

I = 6%

Annual interest rate = 6.00%

Answer c.

Amount borrowed = $73,000
Amount repaid = $96,064
Period = 7 years

Using financial calculator:
N = 7
PV = 73000
PMT = 0
FV = -96064

I = 4%

Annual interest rate = 4.00%

Answer d.

Amount borrowed = $14,000
Amount payment = $3,693.20
Period = 5 years

Using financial calculator:
N = 5
PV = 14000
PMT = -3693.20
FV = 0

I = 10%

Annual interest rate = 10.00%

Add a comment
Know the answer?
Add Answer to:
Find the interest rates earned on each of the following. Round each answer to two decimal...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Find the interest rates earned on each of the following. Round each answer to two decimal...

    Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $700 and promise to pay back $763 at the end of 1 year. % You lend $700 and the borrower promises to pay you $763 at the end of 1 year. % You borrow $98,000 and promise to pay back $119,232 at the end of 5 years. % You borrow $9,000 and promise to make payments of $2,684.80 at the end...

  • eBook Find the interest rates earned on each of the following. Round your answers to the...

    eBook Find the interest rates earned on each of the following. Round your answers to the nearest whole number . You borrow $700 and promise to pay back $742 at the end of 1 year . % You lend $700 and the borrower promises to pay you $742 at the end of 1 year. % You borrow $87,000 and promise to pay back $215,409 at the end of 8 years. % You borrow $11,000 and promise to make payments of...

  • Effective rate of interest Find the interest rates earned on each of the following. Round each...

    Effective rate of interest Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $710 and promise to pay back $781 at the end of 1 year. % You lend $710 and the borrower promises to pay you $781 at the end of 1 year. % You borrow $86,000 and promise to pay back $370,698 at the end of 14 years. % You borrow $20,000 and promise to make payments of...

  • Find the interest rates earned on each of the following. Round your answers to the nearest...

    Find the interest rates earned on each of the following. Round your answers to the nearest whole number. You borrow $700 and promise to pay back $777 at the end of 1 year. % You lend $700 and the borrower promises to pay you $777 at the end of 1 year. % You borrow $64,000 and promise to pay back $164,171 at the end of 6 years. % You borrow $10,000 and promise to make payments of $2,504.60 at the...

  • Find the interest rates earned on each of the following. Round your answers to the nearest...

    Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $750 and promise to pay back $795 at the end of 1 year. 6 % b. You lend $750 and the borrower promises to pay you $795 at the end of 1 year. 6 % c. You borrow $56,000 and promise to pay back $260,534 at the end of 11 years. D % d. You borrow $10,000 and promise...

  • 2. Problem 5.12 (Effective Rate of Interest) eBook Find the interest rates earned on each of...

    2. Problem 5.12 (Effective Rate of Interest) eBook Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $650 and promise to pay back $715 at the end of 1 year. 10.00 % b. You lend $650 and the borrower promises to pay you $715 at the end of 1 year. 10.00 % c. You borrow $96,000 and promise to pay back $412,783 at the end of 8 years....

  • 5-4: Finding the Interest Rate, I 5-16: Comparing Interest Rates

    Effective rate of interestFind the interest rates earned on each of the following. Round each answer to two decimal places.You borrow $750 and promise to pay back $780 at the end of 1 year. %You lend $750 and the borrower promises to pay you $780 at the end of 1 year. %You borrow $63,000 and promise to pay back $121,302 at the end of 5 years. %You borrow $20,000 and promise to make payments of $6,687.60 at the end of each year for...

  • 5-4: Finding the Interest Rate, I 5-16: Comparing Interest Rates Effective rate of interest Find the...

    5-4: Finding the Interest Rate, I 5-16: Comparing Interest Rates Effective rate of interest Find the interest rates earned on each of the following. Round each answer to two decimal places. a. You borrow $700 and promise to pay back $770 at the end of 1 year. % b. You lend $700 and the borrower promises to pay you $770 at the end of 1 year. c. You borrow $58,000 and promise to pay back $182,802 at the end of...

  • 1) Loan amortization and EAR You want to buy a car, and a local bank will...

    1) Loan amortization and EAR You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan payment? Round your answer to the nearest cent. $ What will be the loan's EAR? Round your answer to two decimal places. % 2) Effective rate of interest Find the interest rates...

  • Find the interest rate (or rates of return) in each of the following situations. Do not...

    Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number. You borrow $650 and promise to pay back $676 at the end of 1 year.   % You lend $650 and receive a promise to be paid $676 at the end of 1 year.   % You borrow $60,000 and promise to pay back $289,075 at the end of 12 years.   % You borrow $16,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT