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- Problem 5-63 Effective Interest Rate (LO4) Assume you take out a car loan of $7,700 that calls for 60 monthly payments of $210 each. a. What is the APR of the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Annual percentage rate % b. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %Problem 6 INTEREST COST. Ajax Corporation is deciding whích of two banks to borrow from on a 1-year basis. Bank A charges an 18 percent interest rate payable at maturity. Bank B charges a 17 percent intereșt rate on a discount basis. Which loan is cheaper? Problem 7CENGAGE MINDTAP Ch 07: Assignment - Using Consumer Loans You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance charges Loan disbursement $ Total payback APR = Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR $6,000 First, compute the average annual finance charge by dividing the total finance charge of $ (Note: Round your answers to the nearest dollar.) half (1.5 years): = $ = $ Average Annual Finance Charge Average Loan Balance Outstanding = Next, as a single-payment loan, the average loan balance outstanding is constant at the loan disbursement $ Complete the calculation. (Note: Round your answers to the nearest dollar and your percentage point to the nearest two decimal places.) Average Annual Finance Charge / Average Loan Balance Outstanding by the life of the loan,…
- Question A Suppose the annualized LIBOR3 is 4.23% and the annualized LIBOR6 is 5.97%. What is the forward forward rate for a LIBOR3 (annualized) deposit to be placed in three months? a.7.629% b.4.043% c.10.200% d.6.678% e.None of the options in this question are correct. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line .Q16 A certificate of deposit (CD) often charges a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the charge for early withdrawal on a $10000 CD with a 3.0% interest rate APR, compounded monthly?2 Quantitative Problem: Bank 1 lends finds at a nominal rate of 6% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank would like to change the same effective amual rate as Bank 1, what nominal interest rate will they charge their customers? Do not round intermediate calculations. Rand your answers to three decimal WL places. wer maiteme SA A ngu? A 2118 tax f 40 THE # AALIY S * مجلسی W
- Number of Loans Principal 50 100 50 100,000 250,000 300,000 Rate 4.25% 5% Maturity 360 180 360 If these 200 loans are pooled to create a MPT, what is the starting pool balance in dollars? Assume the loans are not seasoned before securitization.Question A .Consider the following series of payments which start at time t = 0: 5, 7, 9, 11... What is the value of this series of payments at time t = 6? Effective annual interest rate is 8% p.a. Question 7Select one:Select one: A. 92.68 B. 122.44 C. 68.72 D. 103.28 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Title Paragraph Styles PV = $ 6) Find the present value PV of the annuity account necessary to fund the withdrawal given. Hint [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $600 per month for 15 years, if the account earns 6% per year and if there is to be $10,000 left in the annuity at the end of the 15 years PV = $ 7) Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $300,000 at 3%, paid out monthly for 14 years PMT = $ 8)
- Drill Problem 11-6 (Algo) [LU 11-2 (1, 2)] Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 7%. Use the ordinary interest method. (Use Days in a year table.) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. Face value (principal) Rate of interest Length of note Maturity value $ 29,500 8% 75 days Date of note January 12 Date note discounted February 3 Discount period Bank discount Proceeds Exact days-in-a-year calendar (excluding leap year)* Day of month 31 January 28 February 31 March 30 April 31 May 30 June 31 July 31 August 30 September 31 October 30 November 31 December 1 1 32 60 91 121 152 182 213 244 274 305 335 2 2 33 61 92 122 153 183 214 245 275 306 336 3 3 34 62 93 123 154 184 215 246 276 307 337 4 4 35 63 94 124 155 185 216 247 277 308 338 5 5 36 64 95 125 156 186 217 248 278 309 339 6 6 37 65 96 126 157 187 218 249 279 310 340 7 7 38 66 97 127 158 188 219 250 280 311 341 8 8 39…Problem 5-55 Effective Interest Rate (LO4) You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $18, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Effective annual interest rate 10.44 %CENGAGE MINDTAP Ch 07: Assignment - Using Consumer Loans 12. Buy on time or pay cash? You are going to make a substantial purchase. You have enough money to pay cash, but don't know if that's the way to make best use of your assets. Maybe you should take out an installment loan to make the purchase and invest the cash you would otherwise have used to pay for it. Use the information provided to complete the following worksheet and analyze how the numbers work out most favorably for you. For simplicity, compounding is ignored in calculating both the cost of interest and interest earnings. [Note: Enter your dollar answers rounded to the nearest two cents and precede numbers that are less than zero (0) with a minus sign (-).] Q Search this course ? Khloe ✓ A-Z