Answered: 2.60. You have borrowed $10,000 from a…

2.60. You have borrowed $10,000 from a bank at the interest rate of 1% per month. Your monthly payment is $554.15. Find the time required to repay the loan.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: future value of your money in 17 years.

A: Future Values: Future value is the value that will be increased or decreased after a particular…

Q: Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly…

A: The objective of this question is to calculate the total amount paid over 11 years to clear a credit…

Q: Suppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

Q: You borrow $560,000 to purchase a home. The loan rate is 8.95% and must be repaid in 27 years. What…

A: Compound = Monthly = 12Present Value of Payment = pv = $560,000Interest Rate = r = 8.95 / 12%Time =…

Q: . Suppose you have a bank account into which you make $100 deposits each month. You find a bank…

A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months

Q: Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: You have borrowed $10,000 from a bank at the interest rate of 1% per month. Your monthly payment is…

A: Loan is the debt borrowed from the bank. monthly payment formula: monthly payment=p×r1-1+r-n×m…

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: 1. If you deposit money today in an account that pays 6.5% annual interest, how long will it take to…

A: Future value is the value of cash in future at a particular date.Let us assume if person X has…

Q: First Bank offers you a car loan at an annual rate of 10% compounded monthly. What effective annual…

A: Effective annual interest rate is the rate of interest actually earned due to compounding of…

Q: You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: First bank offers you a car loan at an annual interest rate of 10% compounded monthly. What…

Q: You owe $2,000 on a credit card that charges 20% interest. You have $2,200 in your savings account…

A: Debt on Credit card = $2,000 Bank balance on Savings account = $2,200 SB Interest rate = 1.69%…

Q: You are planning on buying a new car. You need to finance $32,500 for the purchase. The bank will…

A: Present value of annuity is computed by following formula:-PV = A*wherePV = Present value of…

Q: You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Your credit card has a balance of $4500 and an interest rate of 22%. The credit card requires a…

A: Credit cards refer to debt instruments that are provided by financial institutions to individuals…

Q: 12.1 pg. 219-220 Find the monthly payment for each loan below. Remember to assume monthly…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.…

Q: If you borrow $30,000 from a bank for 7 years at an interest rate of 8.5%, how much will you owe in…

A: A loan refers to a contract between two parties where money is forwarded from one party to the other…

Q: One bank offers to loan you money at an interest rate of 12% compounded quarterly, and another bank…

A: Effective annual rate offered on each of the loan is calculated. Effective annual rate of 12%…

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay…

A: Present worth or ordinary annuity can be found by using the PV formula function in the excel sheet.…

Q: Compute monthly payment.

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: Suppose a credit card was used to make a $12.680 purchase at 14.5% interest with a monthly payment…

A: Time period refers to the time required to payoff the debt including the interest compounded for th…

Q: A friend asks to borrow $48 from you and in return will pay you $51 in one year. If your bank is…

A: Information Provided: Present value of borrowed amount = $48 Amount to be repaid in one year = $51…

Question

2.60. You have borrowed $10,000 from a bank at the interest rate of 1% per month. Your
monthly payment is $554.15. Find the time required to repay the loan.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to Question:

VIEW

Step 2 : Calculation of time required to repay the loan:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Your credit card has a balance of $4500 and an interest rate of 22%. The credit card requires a minimum payment of 3%. What is your minimum payment? What is your interest for 1 month? What is your new balance?
To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are you paying? What is the stated or quoted rate? What is the annual percentage rate? What is the effective annual rate? What rate is bank likely to use to state its rate?
Suppose you have borrowed 72,000 as a mortgage loan on your house. The interest rate is 3%. The bank has calculated the monthly payment to be $515.83. How long will it take you to pay the loan?
Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $60? Please solve using financial calculator
am.101.
Find the monthly payment for a bank loan. (Round your answer to the nearest cent.) $100 loan for 12 months at 12%
2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?
You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year payments of $3,223.73. What is the annual interest rate on this loan?
You get a new credit card from your bank. The document that comes with the card informs you that the interest rate on that card is 24% APR with monthly compounding. What is the effective annual rate you'll actually be paying? Enter your answer as a percentage, rounded to 2 decimals, and without the percentage sign ('%'). For example, if your answer is 0.23456, then enter 23.46
Suppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.10%, calculated monthly. a. How much will your friend pay you each month? ______________ b. How much will you have in your account at the end of 60 months? (to nearest $___________________ c. What is your effective annual return (EAR), _._ _%?______________
Please solve this Accounting question
Provide answer this general Accounting question