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- What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan? Hint: An interest rate r and discount rate d are said to be equivalent if these two simple rates give the same present value for an amount due in the future. Thus, r = d/(1 - dt) and d = r/(1 + rt)Q7. What is the effective interest rate on a loan which charges 3.75% p.a. interest compounded monthly?3. If the effective interest rate is 15%, what nominal rate of interest is charged for a continuously compounded loan?
- If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months. What is the simple interest discount rate? A. 1.75% В. 1.74% С. 1.73% Answer:3. A. Explain the difference between Installment Loan and Mortgage Loan. B. You are offered a simple interest of 8 % on a sum of OMR 20,000 for 4 years and at a compound interest rate of 6% per annum, compounded annually. Which of the two options is beneficial for you? (Show your Workings).What simple interest rate is equivalent to simple discount rate 15 1⁄2 % in discounting an amount for 9 months?
- 24. Which of the following is the base unit of time over which an interest rate is calculated? Interest Period Discount Rate Compounding Period Compounding Rate 25. Simple interest of P1,235 is owed on a loan of P9,500 after four years and four months. What is the annual interest rate? 2% 2.5% 3.5% 3%9-9 Under what conditions would the simple interest rate, or APR (remember rSIMPLE APR), equal the effective annual rate, rEAR? 9-10 What is an amortized loan? What is an amortization schedule and how is it used?asssuming that the interest is the only finance charge, how much interest would be paid on 5,000 installment loan to be repaid in 36 moonthly installment 166.10? what is the apr on this loan?
- 10) Compute the simple interest and final amount of each loan Principal Rate Time P 400 7% 1 year P 640 9% 3 months P 985 10% 180 days (ordinary time period) 60 days (exact time period) P 850 6% ABCD Interest ? ? ? ? Final amount ? ? ? ?A. what is the Monthly Payment ? what is the total interest paid ? B. time to pay off mortgage if extra $100 is added ? total interest saved ? I will rate thakn you!What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan both of $72700 if the annual interest rate is 5% a. $27262.50 b. $54525.00 c. $37012.40 d. $10348.38