A consumer loan requires monthly payments, in e amounts, $700.00. The next payment is due in or month. Assume that the appropriate discount rate 21% (APR). What is the effective annual rate? (s

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: The interest amount on a $46,500 loan was $24,785.95. The interest rate charged on loan was 9.20%…

A: Future value of a loan refers to the total amount that will be due at the end of the loan term,…

Q: A payday loan servicer has a stated APR of 23.68%. In reading the fine print on the loan you see…

A: Nominal Rate = 23.68% = 0.2368Number of Compounding Periods = 365

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…

A: Given:

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Simple interest is defined as an easy as well as quick method for the calculation of an interest on…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is…

A: Calculation of Effective Annual Rate By using Rate function of Excel=RATE(nper,pmt,pv)wherenper is…

Q: A lender wished to earn an annual simple interest rate of 14%. What annual simple discount rate…

A: Banks frequently subtract basic interest from loan amounts at the moment the loan is originated.…

Q: The maturity value of a 4-month loan of $4,250 is $4,367.50. What is the annual simple interest rate…

A: The maturity value is $4367.50. The principal amount is . The time is  months. The objective is to…

Q: Consider a home mortgage of $150,000 at a fixed APR of 6% for 25 years. a. Calculate the monthly…

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

Q: EZ Pay Loans will lend you $100 today with repayment of $117.50 due in 1 month. Determine the…

A: Given Information : Present Value of loan : $ 100 Future Value : $ 117.50 Time : 1 month

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Future value (FV) is the value of a current asset based on an estimated rate of increase at a future…

Q: What is the monthly payment amount on a $100,000 home loan if the rate is 6.0% APR, and the loan is…

A: Present Value of loan (PV) = $100,000Annual Rate = 6%Monthly rate (r) = 6% / 12 = 0.5% or…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: A 6-year car loan charges flat rate at 2.5% per annum, to be repaid by a monthly annuity-due.…

A: 1. Loan Term: 6 years (72 months)2. Interest Rate: 2.5% per annum (flat rate)3. Repayment Type:…

Q: Find the annual simple interest rate (in percent) on a 3 -month loan of \( \$ 5,000 \) if the…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period?…

A: Trade credit is a form of financing provided by suppliers to their customers. It allows customers to…

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Ordinary interest is a method of interest calculation where the principal amount remains the same…

Q: A loan's nominal interest rate is 16%, APR. If the loan is payable monthly, the effective interest…

A: Effective annual interest rate is simply an effective rate of interest earned on any loan or…

Q: $25,000 at a fixed APR of 9​% for 25 years.   a. Calculate the monthly payment. b. Determine the…

A: Loans are paid by the monthly payments and these are fixed payments that carry the payment for…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: Consider a 48 month amortizing car loan with 6% APR and monthly payments. Which of the following…

A: Effective annual rate = (1+Monthly interest rate)12-1

Q: The discount rate on a T-Bill is always a simple annual interest rate, using the formula, D= PVrt…

A: Treasury bills are the debt instruments issued by the Government for a short period generally for…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: The simple interest is computed on the loan amount for the time period the loan was due. It does not…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.