Current Attempt in ProgressAbe is offered a loan of $24,000 that requires 60 monthly payments of $491.24.What is the effective annual interest rate on this loan? (Round intermediate calculations to 5 decimal places, e.g. 5.12534% canswer to 2 decimal places, e.g. 25.12%.)Annual interest rate%What would the quoted rate be? (Round answer to 2 decimal places, e.g. 25.12%. Do not round your intermediate calculations.Quoted rate%

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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Similar questions

Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is quoted as 13 percent plus 3 points. What is the EAR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate Is your answer affected by the loan amount? O Affected 16.79 % Not affected
Prescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What will your annual loan payment be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Annual loan payment < Prev 14 of 23 Next GH BN M
What annual payment is required to pay off a four-year, $29,000 loan if the interest rate being charged is 7 percent EAR? What would the monthly payments be for the same loan assuming the same interest rate? Use Exhibit 18-4. (Round time value factors to 3 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Annual payment Monthly payment %24 %24
1. If you borrow $2,400 and agree to repay the loan in four equal annual payments at an interest rate of 10%, what will your payment be? (Do not round intermediate calculations. Round your enswer to 2 decimal places.) Amount of payment b. What if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Repayment amount %24 %24
A loan is offered with monthly payments and a 14.50 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) EAR =___.__%
Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ ✓Answer is complete and correct. Time b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. 1 2 3 4 Loan Balance (S) 2,400.00 2,400.00 757.13 1,882.87 x 1,314.03 688 Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance (5) 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 10 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30
A loan of $7000 is to be repaid by three equal payments one and a half year from now, three years and four and three quarter years from now respectively. What is the size of the equal payments if interest on the debt is 15% compounded quarterly ? Use six decimal places for intermediate calculations and round the final answer to 2 decimal places (e.g., 0,00) Be sure to show the tinancial calculator inputs for PY, I, PV, CY, N, FV and PMT on the document that you will hand in at the end of the test. Show the work for each calculation (required). Include a timeline if desired (optional)
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A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4- months from now. Instead of this payment scheme, the borrower wishes to make one single payment 2 months from now. What is the amount of the alternative single payment using a focal date of 3 months and r = 6%? A. $1890.55 B. $1905.51 C. $1896.03 D. $1901.00

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