You've been offered a loan of $15 comma 00015,000, which you will have to repay in...
You've been offered a loan of $15 comma 00015,000, which you will have to repay in 1212 equal annual payments of $3 comma 0003,000, with the first payment due one year from now. What interest rate would you pay on that loan?
Homework Answers
Let interest rate be x%
At this rate;present value of annual payment=15,000
15,000=3000/1.0x+3000/1.0x^2+.................+3000/1.0x^12
Hence x=interest rate=16.94%(Approx).
Add Answer to:
You've been offered a loan of $15 comma 00015,000, which you
will have to repay in...
If you borrow $9,000 and agree to repay the loan in six equal annual payments al...
If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of 10%, what will the annual payment be? What if you make the first payment on the loan at the end of second year?
Dominic borrows 7200 dollars today, and agrees to repay the loan by making annual interest payments...
Dominic borrows 7200 dollars today, and agrees to repay the loan by making annual interest payments to the lender, and by also accumulating a sinking fund with increasing annual deposits to repay the principal. The interest rate on the loan is 8.8 percent, and the interest paid on the sinking fund is 6.7 percent, both effective. If the loan is to be settled 15 years from now, and the sinking fund deposits increase by 7 dollars per year, what is...
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly...
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly compounding of interest. What is your effective annual interest rate? 10. You are offered an annuity that will pay $15,000 per year for 20 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 3%, what is the annuity worth to you today? 11. If you deposit $6,500 per year (each deposit is made at...
What is the total amount you will have to repay for your $41,000 student loan if...
What is the total amount you will have to repay for your $41,000 student loan if the interest rate is 4% APR and you pay equal monthly payments over the 10 year life of the loan?
What is the total amount you will have to repay for your $24,000 student loan if...
What is the total amount you will have to repay for your $24,000 student loan if the interest rate is 5% APR and you pay equal monthly payments over the 10 year life of the loan?
Time Value of Money Keenan has won the lottery for $10,000,000. He is offered a cash...
Time Value of Money Keenan has won the lottery for $10,000,000. He is offered a cash payment now of $7,500,000, or 10 annual payments of $1,000,000. _____________ What is the interest rate that makes these two amounts equal? _____________ If you can invest at 8% how much would you have after 10 years if you invested the $7,500,000? You want a new car that costs $32,000. Figure out the following: ______________ What would the monthly payment be if you borrowed...
answer those 4 please Fatima just borrowed 83,364 dollars. She plans to repay this loan by...
answer those 4 please Fatima just borrowed 83,364 dollars. She plans to repay this loan by making a special payment of 29,387 dollars in 7 years and by making regular annual payments of 13,147 dollars per year until the loan is paid off. If the interest rate on the loan is 17.93 percent per year and she makes her first regular annual payment of 13,147 dollars immediately, then how many regular annual payments of 13,147 dollars must Fatima make? Round...
You take out a loan for $12257 today. The bank requires that you repay the loan...
You take out a loan for $12257 today. The bank requires that you repay the loan with two equal payments, one payment in year 1 and one payment in 2. The interest on the loan is 7% per year. How big is each loan payment?
You take out a loan for $12257 today. The bank requires that you repay the loan...
You take out a loan for $12257 today. The bank requires that you repay the loan with two equal payments, one payment in year 1 and one payment in 2. The interest on the loan is 7% per year. How big is each loan payment?
You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next...
You borrow $100,000 today. You will repay the loan with 5 equal annual payments starting next year. Each payment is equal to $20,000 In addition to these payments, you will make a "balloon payment" in year 5 . If the interest rate on the loan is 2% APR, compounded annually, how big is the balloon payment? Group of answer choices $6,304 $6,960 $5,731 $6,327
You take out a loan for $12257 today. The bank requires that you repay the loan with two equal payments, one payment in year 1 and one payment in 2. The interest on the loan is 7% per year. How big is each loan payment?
You take out a loan for $12257 today. The bank requires that you repay the loan with two equal payments, one payment in year 1 and one payment in 2. The interest on the loan is 7% per year. How big is each loan payment?
Most questions answered within 3 hours.
-
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 4 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 14 minutes ago -
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 16 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 16 minutes ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 32 minutes ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 41 minutes ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 41 minutes ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 53 minutes ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 59 minutes ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 1 hour ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 hour ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 1 hour ago