2. (10 pts) You borrow $40,000 from the local bank at 5% APR,
compounded monthly on a 6-year loan but you want to pay for the
loan with payments every four months. (a) What is your effective
interest on your 4-month payment? (b) What is your payment made
every four months? (c) What is the APY for your loan with your
payments??
2. (10 pts) You borrow $40,000 from the local bank at 5% APR, compounded monthly on...
You want to borrow $10,000 from a local bank, which is to be repaid in 2 equal semiannual installments. The loan officer initially offered an interest rate of 12% compounded monthly. However, you were able to negotiate that interest be compounded semiannually instead of monthly. With this negotiation, how much do you save in total interest payments over the loan life?
3. You have found three investment choices for a one-year deposit:10.0 % APR compounded monthly, 10.0% APR compounded annually, and 9.0% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.) 4. Suppose Capital One is advertising a 60-month, 5.99 %APR motorcycle loan. If you need to borrow$8,000to purchase your dream Harley-Davidson, what will be your monthly...
You want to borrow $90,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,700, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) interest rate %
7. You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25% APR compounded monthly. After 5 years the interest rate drops to 4.75% APR compounded monthly. The bank is charging 2 points to originate the new loan. How many months do you need to stay in the house after the refinance to make the refinance a benefit? (10 Pts) a. 18 months b. 20 months C. 30 months 36 months...
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the APR for this credit card? (b) What is the APY? Assume 360 days in a year (twelve 30-day months). 2. A local credit union is advertising a car loan with an APR of 6.75%. If interest is compounded monthly, (a) what is the interest rate per compounding period, and (b) what is the effective annual interest rate (i.e., the APY)? 3. Your local credit...
You want to borrow $86,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,500, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate 7.81+4%) %
You want to borrow $69,000 from your local bank to buy a new car. You can afford to make monthly payments of $1,200, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78 month APR loan? Please show all work and calculations.
You want to borrow $100,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? Please show steps for full credit
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...
3,4,5,6. can you explain me how to do it! 3. (10 pts) Six years from today you need $600,000. You plan to deposit $5000 monthly, with the first payment to be made now. into an account that pays 12 percent effective annual rate. Will you have enough saved? Show the work to support your conclusion, (10 pts) Tom plans to buy a Mazda 6 for $32,000 from a local automobile dealer in two years. He plans to place a down...