ZuoTi.Pro
Question

The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of...

The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months. The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90.64 for a requires life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?
(HINT: represent your answer as a percentage value (not a decimal value), but skip % sign)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The nominal annual interest rate can be calculated by typing the following formula in an empty cell of the excel sheet: =RATE

0 0
Add a comment
Know the answer?
Add Answer to:
The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of...

    The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90 64 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan? The nominal interest rate that is...

  • Compare three student loans for $80,000 for 4 years of college. Compare varying student loan offers,...

    Compare three student loans for $80,000 for 4 years of college. Compare varying student loan offers, their monthly payments and total repayment cost. Three possible examples: Student 1) immediately. A loan at fixed 6.25% that you pay for 10 years starting right away as a normal installment loan, Student 2) Pay interest only. Pay interest at fixed 6.25% for the four years you are in college. Then for 6 years after college, pay the loan as a 6 year installment...

  • Katerina graduated from Concordia in December 2020 and knows that after finishing school, there is a 6-month non-repayment period on her Canada Student Loan with no interest accruing during that time.

    Katerina graduated from Concordia in December 2020 and knows that after finishing school, there is a 6-month non-repayment period on her Canada Student Loan with no interest accruing during that time. As of July 1, 2021, she started working at Telus and started making payments on her Canada Student Loan. Her student loan balance was $12,750 on January 1, 2021. Her total loan payments in 2021 will be $1,975, of which $1,827 will represent the repayment of the principal on...

  • Question 1: a) A loan is to be repaid by a student The student has debts...

    Question 1: a) A loan is to be repaid by a student The student has debts of $10,000 to be paid at the end of the first year, $5,000 to be paid in 18 months and $3,000 to be paid in the 24th month The student would prefer to pay the debts as follows. $1,000 now, followed by payments at the end of the 6th, 20th and 30th month. The payment at the end of the 6th month is half...

  • al. If the loan requires being A company offers to loan $6,000 using a car title...

    al. If the loan requires being A company offers to loan $6,000 using a car title as collateral. If the loan paid back $7,500 in 3 months, what simple interest rate did the loan company earn? If the loan company made a similar $6,000 every 3 months for a year, how much total of the year? interest would they earn over the course Exercise 1.2.10. Bobby is buying a house from Ami for $15,000. To complete the sale of a...

  • On your student​ loans, if​ possible, try to make​ interest-only payments while you are still in...

    On your student​ loans, if​ possible, try to make​ interest-only payments while you are still in school. If interest is not​ repaid, it folds into principal after graduation and can cost you hundreds​ (or thousands) of extra dollars in finance charges. For​ example, Sara borrowed ​$5000 at the beginning of her freshman year and another ​$4,000 at the beginning of her junior year. The interest rate​ (APR) is 9​% per​ year, compounded​ monthly, so​ Sara's interest accumulates at 0.75​% per...

  • RETIRING STUDENT LOAN DEBT You have just started a new job with a significant increase in...

    RETIRING STUDENT LOAN DEBT You have just started a new job with a significant increase in salary above what you were earning when you originally negotiated your student loan repayment. The salary increase affords you the opportunity of increasing your monthly loan payments, thereby allowing you to retire the debt sooner than originally planned. You have six years remaining in the original payback plan on a loan of $55,000, with an interest rate of 2.4% and a monthly payment of...

  • Skip Stephens recently graduated from college with a degree I business administration. While attending college, Skip...

    Skip Stephens recently graduated from college with a degree I business administration. While attending college, Skip built up a large amount of debt, which currently includes student loans, outstanding credit card balances, bank loans, and so forth. Now that he has a good-paying job, Skip wants to clean up his debt position to improve his credit reputation so that he can qualify for a mortgage when he is ready to purchase a house in a few years. As a result...

  • Question 1 -Interest & loan Sue will need $120,000 to refurbish her house at the corner...

    Question 1 -Interest & loan Sue will need $120,000 to refurbish her house at the corner of a main road into a cake shop in 5 years. She has a saving account which carn 3.47 % p.a. compounding quarterly and she is able to deposit $800 into that account at the end of each month for 5 years. a) Will Sue have enough money after 5 years? If not, how much is in short? Show all calculations. (4 marks) b)...

  • An engineering student bought a car at a local used car lot. Including tax and insurance,...

    An engineering student bought a car at a local used car lot. Including tax and insurance, the total price was $15,000. He is to pay for the car in 13 equal monthly payments, beginning with the first pay- ment immediately (the first payment is the down payment). Nominal interest on the loan is 12%, com- 4-38 monthly. After six payments he decides to sell the car. A buyer agrees to pay off the loan in full and to pay the...

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