Time Value of Money
The end of the month has arrived and Marina was only able to save up $175 to pay off her pay-day loan of $900. This means she will have to delay payment on the remaining $725 until next month. Besides the delayed payment fee that she is charged, she will now have to pay interest on the remaining amount. The APR (annual percentage rate) is 47%, but the interest is compounded daily.
What is the effective interest rate that Marina will actually be paying?
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The end of the month has arrived and Marina was only able to save up $150...
The end of the month has arrived and Marina was only able to save up $150 to pay off her pay-day loan of $900. This means she will have to delay payment on the remaining $750. Besides the delayed payment fee that she is charged, she will now have to pay interest on the remaining amount. The APR (annual percentage rate) is 47%, but the interest is compounded daily. What is the effective interest rate that Marina will actually be...
(1) It took her 9 more months but Marina has managed to save the full $725...
(1) It took her 9 more months but Marina has managed to save the full $725 plus more to cover fees to pay off the pay-day loan company. However, she forgot to account for the interest that had been compounding over time. Consider it is now 275 days later, the remaining loan was $725 and the APR is 47% compounded daily. What is the total amount that Marina must now pay in order to pay off her the loan, accounting...
Annuity
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This is for a finance course for beginners im very confused.
Thank you!
Anne has difficulty managing her debt. She usually carriess a balance on her credit card, has maxed out her $16,000 line of credit and now finds herself in the position of having to borrow to purchase a car. a)Assume Annes's credit card balance is $3,000. If she doesn't use her card again and only makes the minimum 3% payment every month, how long will it take her...
on present value of annuity sheila davidson borrowered money from her credit union and agreed to...
on present value of annuity sheila davidson borrowered money
from her credit union and agreed to repay the loan in blended
monthly payments of $161.75 over a 4 year period. interest on the
loan was 9% compounded monthly
Business Math 2 G6 e https//clansroom.google.com/1//MauoOTO3MOYEMDa c) How much interest will there be? On present value of annuity Sheila davidson borrowed money from her credit union and agreed to repay the loan in blended monthly payments of $161.75 over a 4 year...
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Question 4: Application of Time Value of Money to Mortgages (30 marks) Shanna wants to buy a house costing $325,000 and has obtained a loan from TD Bank. A minimum down payment of 15% would be required and the bank will provide the difference. Her grandparent have told her that they will cover her down payment. a. TD Bank has quoted her mortgage interest rate is 4.5%; this rate would be compounded semi- annually, while her payments would be made...
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This is for a finance course for beginners im very confused.
Thank you!
Anne has difficulty managing her debt. She usually carriess a balance on her credit card, has maxed out her $16,000 line of credit and now finds herself in the position of having to borrow to purchase a car. a)Assume Annes's credit card balance is $3,000. If she doesn't use her card again and only makes the minimum 3% payment every month, how long will it take her...
on present value of annuity sheila davidson borrowered money
from her credit union and agreed to repay the loan in blended
monthly payments of $161.75 over a 4 year period. interest on the
loan was 9% compounded monthly
Business Math 2 G6 e https//clansroom.google.com/1//MauoOTO3MOYEMDa c) How much interest will there be? On present value of annuity Sheila davidson borrowed money from her credit union and agreed to repay the loan in blended monthly payments of $161.75 over a 4 year...
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