A commercial bank will loan you $27,000 for five years to buy a car. The loan must be repaid in 60 equal monthly payments. The annual interest rate on the loan is 5%. What is the amount of the monthly payments?  $1,426.36 $688.11 $6,236.31 $509.52

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

Q: Baghiben

A: The objective of this question is to calculate the monthly payment for a car loan. The loan amount…

Q: how much will you have when it matures?

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Q: You have approached your bank for a 30 year mortage loan in the sum of $2,160,000. The bank has…

A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…

Q: person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: a.  Annual Percentage Yield      APY =[ (1+r)^n - 1]       APY = [(1+0.015)^12-1]       APY…

Q: Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5%…

A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…

Q: A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over…

A: Monthly payment refers to the amount of money payable every month by the borrower to the lender of…

Q: You recently graduated from Miami University and are looking to purchase a new vehicle. The car…

A: Monthly Payment:A "monthly payment" refers to a recurring amount of money that is paid on a monthly…

Q: Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans.…

A: The discount loan refers to a loan where the amount to be repaid is fixed and the amount provided to…

Q: 1. Mary Rose borrowed money from a bank amounted 12,000 with an interest rate of 11.5%, the monthly…

A:

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual…

A: In this case, the bank uses different interest rates for different periods, so we'll need to apply…

Q: What is the outstanding balance of the loan after the 2nd year

A: Compound interest is the amount of interest charged on interest. In this method the interest…

Q: Yoo Incorporated, has arranged a line of credit that allows it to borrow up to $63 million at any…

A: We need to use compound interest formula below to calculate interest Compound interest = P[(1+i)n…

Q: The First Common Bank has advertised one of its loan offerings as follows: “We will lend you…

A: Interest: It can be defined as the cost incurred by the borrower related to the amount borrowed.

Q: Ms. Sarah Kline is a copy editor for a major Canadian publisher. Her gross salary for the year ended…

A: The employment income is computed as follows: Employment Income = Gross salary - Income Tax -…

Q: Yoo, Incorporated, has arranged a line of credit that allows it to borrow up to $42 million at any…

A: Interest paid refers to an amount that is paid by the borrower to the lender on the loan amount at…

Q: Bank A pays 7% simple interest on its savings account balances. Bank B pays 5.5% interest compounded…

A: STEP 1 Simple interest is the amount of interest charged on a specific principal amount at a…

Q: Mr samuel approached the arnett national bank for a 15,000 loan to purchase vehicle the bank charges…

A:

Q: Ezze Mattress needs to raise $200,000 for 6 months. The bank quotes a discount interest rate of 7.5%…

A: Effective annual return (EAR) is a financial measure that expresses the annual rate of return or…

Q: Suppose you have the following three student loans: $11,000 with an APR of 8.5% for 12 years,…

A: Here,First LoanSecond LoanThird LoanLoan Amount $  11,000.00 $  17,000.00 $…

Q: a. What is the effective annual interest rate on this lending arrangement? Note: Do not round…

A: a)Monthly Interest = amount borrowed * Interest rate                          = 70,000,000 * 0.375%…

Q: Suppose you have a Visa credit card and pay a 20 percent annual fina charge (1.67 percent per month)…

A: The credit card charges interest on average daily balance and finance charges on based on month on…

Q: You have asked Raider Bank for a $20,000 signature loan, where you will be charged 1% per month…

A: It seems there might be a mistake or some missing information in this question. Let me clarify a few…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually.…

A: Time = t = 10Interest Rate = r = 6.5%Present Value = pv = $2000

Q: A student loan with a simple annual interest rate of 2.5% must be paid back in ten years. A student…

A: Given data, Interest rate(r)=2.5% or 0.025 per annum Total interest(I)=P2,000 Time(t)=10 years

Q: Bhupatbhai

A: APR (Annual Percentage Rate) is the yearly interest rate charged on a loan or credit card, including…

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

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Q: A local finance company quotes an interest rate of 15.6 percent on one- year loans. So, if you…

A: Explanation:step 1:Definition of  APR and EARAPR (Annual Percentage Rate) is the yearly interest…

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A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: I want to borrow $700 for ten days from a payday loan store. Here are the terms for the payday loan:…

A: Pay Day loan: A payday loan is a small personal cash loan at a very high interest rate, secured by…

Q: A bank offers a home buyer a 30-year loan at 6% per year. If the home buyer borrows $140,000 from…

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

Q: You plan to borrow $46,400 at a 7.6% annual interest rate. The terms require you to amortize the…

A: Loans are paid by the equal annual payments and these payments carry the payment for interest and…

Q: Bank A offers you a loan at 5.76% compounded 2 times a year. Bank B offers to loan you the same…

A: Effective rate is the rate which takes into consideration the impact of compounding frequency. Here…

Q: A car dealer offers payments of S522.59 per month for 48 months on a S25, 000 car purchase (Assume a…

A: From the question, we can identify the following values:Monthly payment (PMT) = $522.59Number of…

Q: You decide to originate the loan, but move at the end of 5 years. What is the remaining balance you…

A: Loan Amount  $                   3,00,000.00 Time Period 30 Years Interest Rate 7.20%

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Today, you purchased $5300 on a credit card that charges an APR rate of 22.9 percent, compounded…

A: Monthly payment refers to an amount to be paid every month for the repayment of a loan amount by the…