4.) An 99%APR with monthly compounding is closest to which of the following? A.an EAR of...
4.) An 99%APR with monthly compounding is closest to which of the following?
A.an EAR of
11.2611.26%
B.an EAR of
7.57.5%
C.an EAR of
18.7618.76%
D.an EAR of
9.389.38%
5.)A $52,000 loan is taken out on a boat with the terms 6% APR for 36 months. How much are the monthly payments on this loan?
Homework Answers
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4.) An 99%APR with monthly compounding is closest to which of
the following?
A.an EAR of...
What is the average EAR on an investment that earns a 6% APR with monthly compounding...
What is the average EAR on an investment that earns a 6% APR with monthly compounding for five (5) years, followed by an 8% APR with quarterly compounding for an additional eight (8) years. Enter your answer as a percentage rounded to two (2) decimal places.
A $50,000 loan is taken out on a new car with the terms 12% APR (monthly)...
A $50,000 loan is taken out on a new car with the terms 12% APR (monthly) for 48 months. How much are the required monthly payments on this loan? a. $1,316.69 b. $1,711.70 c. $1,301.68 d. $1,580.03 e. $1,448.36
A $53,000 loan is taken out on a boat with the terms 3% APR for 36...
A $53,000 loan is taken out on a boat with the terms 3% APR for 36 months. How much are the monthly payments on this loan? O A. $1,849.56 OB. $1,695.43 O C. $1,541.30 O D. $2,003.70 A perpetuity will pay $700 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 7%? OA. $6,103 O B. $3,815...
25. You have an outstanding loan with an EAR of 10.5 percent. What is the APR...
25. You have an outstanding loan with an EAR of 10.5 percent. What is the APR if interest is compounded monthly? 26. Curtis Builders is borrowing $150,000 today for 5 years. The loan is an interest-only loan with an APR of 9.5 percent. Payments are to be made annually. What is the amount of the first annual payment? 27. What is the future value of a lump sum of $100,000 invested for 6 years at an annual return of 4.0%...
Show all excel formulas used Ex. 3 JIf a dealer offers you a car at $275...
Show all excel formulas used
Ex. 3 JIf a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying? Down payment Monthly payment Loan period months APR No. of compounding times per year Monthly rate Present Value Book formula Excel function Ex. 4 If you take out an $10,000 car loan that call for...
A B Which one of the following statements is correct? The EAR is always greater than...
A B Which one of the following statements is correct? The EAR is always greater than the APR. The APR on a monthly loan is equal to (1 + monthly interest rate)12 - 1. The APR is the best measure of the actual rate you are paying on a loan. The EAR, rather than the APR, should be used to compare both investment and loan options The APR is equal to the EAR for a loan that charges interest monthly....
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortga...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage at 6% APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: A) S3094 B) $1934 C) SI547 D) $2708 15) 15. A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest...
Your best friend consults you for investment advice. You learn that his tax rate is 38%, and he has the following current investments and debts: • A car loan with an outstanding balance of $5,000 and a 4.79 APR (monthly compounding) • Credit cards with
Your best friend consults you for investment advice. You learn that his tax rate is 38%, and he has the following current investments and debts:• A car loan with an outstanding balance of $5,000 and a 4.79 APR (monthly compounding)• Credit cards with an outstanding balance of $10,000 and a 14.94%APR (monthly compounding)• A regular savings account with a $30,000 balance, paying a 5.44% effective annual rate (EAR)• A money market savings account with a $100,000 balance, paying a 5.25% APR (daily compounding)• A tax-deductible home...
1. Samantha has taken out a loan for $5,000 at 8% APR with monthly payments of...
1. Samantha has taken out a loan for $5,000 at 8% APR with monthly payments of $156.68. How much of her first payment goes to pay the interest due? (Enter a number rounded to two decimal places.) 1a. How much of Samantha's first payment goes towards principal? (Enter a number rounded to two decimal places.)
A $53,000 loan is taken out on a boat with the terms 3% APR for 36 months. How much are the monthly payments on this loan? O A. $1,849.56 OB. $1,695.43 O C. $1,541.30 O D. $2,003.70 A perpetuity will pay $700 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of this perpetuity on the date that it is purchased, given that the interest rate is 7%? OA. $6,103 O B. $3,815...
Show all excel formulas used
Ex. 3 JIf a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying? Down payment Monthly payment Loan period months APR No. of compounding times per year Monthly rate Present Value Book formula Excel function Ex. 4 If you take out an $10,000 car loan that call for...
A B Which one of the following statements is correct? The EAR is always greater than the APR. The APR on a monthly loan is equal to (1 + monthly interest rate)12 - 1. The APR is the best measure of the actual rate you are paying on a loan. The EAR, rather than the APR, should be used to compare both investment and loan options The APR is equal to the EAR for a loan that charges interest monthly....
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
14) 14, You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage at 6% APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: A) S3094 B) $1934 C) SI547 D) $2708 15) 15. A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following is closest...
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