A local finance company quotes an interest rate of 18 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18 percent on one-year loans. So, if you borrow $26,000, the interest for the year will be $4,680. Because you must repay a total of $30,680 in one year, the finance company requires you to pay $30,680/12, or $2,556.67, per month over the next 12 months.
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What interest rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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| What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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A local finance company quotes an interest rate of 18 percent on
one-year loans. So, if...
A local finance company quotes an interest rate of 18 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18 percent on one-year loans. So, if you borrow $29,000, the interest for the year will be $5,220. Because you must repay a total of $34,220 in one year, the finance company requires you to pay $34,220/12, or $2,851.67, per month over the next 12 months. a. What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal...
A local finance company quotes an interest rate of 17.1 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 17.1 percent on one-year loans. So, if you borrow $20,000, the interest for the year will be $3,420. Because you must repay a total of $23,420 in one year, the finance company requires you to pay $23,420/12, or $1,951.67, per month over the next 12 months. Is the interest rate on this loan 17.1 percent? a. What rate would legally have to be quoted? (Do not round intermediate calculations and enter...
A local finance company quotes an interest rate of 17 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $28,000, the interest for the year will be $4,760. Because you must repay a total of $32,760 in one year, the finance company requires you to pay $32,760/12, or $2,730.00 per month over the next 12 months. a. What interest rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2...
Problem 4-47 Calculating EAR A local finance company quotes an interest rate of 16 percent on...
Problem 4-47 Calculating EAR A local finance company quotes an interest rate of 16 percent on one-year loans. So, if you borrow $27,000, the interest for the year will be $4,320. Because you must repay a total of $31,320 in one year, the finance company requires you to pay $31,320/12, or $2,610.00, per month over the next 12 months. What rate would legally have to be quoted? (Do not round intermediate calculations. Enter your answer as a percent rounded to...
A local finance company quotes an interest rate of 25 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 25 percent on one-year loans. So, if you borrow $30,000, the interest for the year will be $7,500. Because you must repay a total of $37,500 in one year, the finance company requires you to pay $37,500/12, or $3,125 per month over the next 12 months. Is the interest rate on this loan 25 percent? What rate would legally have to be quoted? What is the effective annual rate? Show steps...
SU2020 Saved A local finance company quotes a 13 percent interest rate on one-year loans. So,...
SU2020 Saved A local finance company quotes a 13 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $3,900. Because you must repay a total of $33,900 in one year, the finance company requires you to pay $33,900/12, or $2,825.00 per month over the next 12 months. a. What rate would legally have to be quoted? b. What is the effective annual rate? < Prev 17 of 40 *
You are looking at a one-year loan of $12,000. The interest rate is quoted as 8 percent plus three points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes simil...
You are looking at a one-year loan of $12,000. The interest rate is quoted as 8 percent plus three points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8 percent interest. What rate would you actually be...
A bank offers your firm a revolving credit arrangement for up to $66 million at an interest rate of 1.65 percent per...
A bank offers your firm a revolving credit arrangement for up to $66 million at an interest rate of 1.65 percent per quarter. The bank also requires you to maintain a compensating balance of 2 percent against the unused portion of the credit line, to be deposited in a non-interest-bearing account. Assume you have a short-term investment account at the bank that pays 1.00 percent per quarter, and assume that the bank uses compound interest on its revolving credit loans....
You are looking at a one-year loan of $17,500. The interest rate is quoted as 8.5...
You are looking at a one-year loan of $17,500. The interest rate is quoted as 8.5 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8.5 percent interest. What rate would you actually be paying...
You are looking at a one-year loan of $18,000. The interest rate is quoted as 8.4...
You are looking at a one-year loan of $18,000. The interest rate is quoted as 8.4 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.4 percent interest What rate would you actually be paying...
A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $28,000, the interest for the year will be $4,760. Because you must repay a total of $32,760 in one year, the finance company requires you to pay $32,760/12, or $2,730.00 per month over the next 12 months. a. What interest rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2...
Problem 4-47 Calculating EAR A local finance company quotes an interest rate of 16 percent on one-year loans. So, if you borrow $27,000, the interest for the year will be $4,320. Because you must repay a total of $31,320 in one year, the finance company requires you to pay $31,320/12, or $2,610.00, per month over the next 12 months. What rate would legally have to be quoted? (Do not round intermediate calculations. Enter your answer as a percent rounded to...
SU2020 Saved A local finance company quotes a 13 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $3,900. Because you must repay a total of $33,900 in one year, the finance company requires you to pay $33,900/12, or $2,825.00 per month over the next 12 months. a. What rate would legally have to be quoted? b. What is the effective annual rate? < Prev 17 of 40 *
You are looking at a one-year loan of $17,500. The interest rate is quoted as 8.5 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 8.5 percent interest. What rate would you actually be paying...
You are looking at a one-year loan of $18,000. The interest rate is quoted as 8.4 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.4 percent interest What rate would you actually be paying...
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