A $10,000 loan is scheduled to be repaid in equal monthly installments at the end of each month for 36 months. The total interest to be paid over that period is $2,600. Each payment is made 15 days late with interest charged at the same effective annual rate of interest as the loan. Assume that each year contains twelve 30-day months. In which of the following ranges is the additional interest charged each month? Possible Answers A < $1.15 B 2$1.15 but < $1.45 c 2$1.45 but < $1.85 D 2$1.85 but < $2.15 E 2 $2.15 but < $2.35

A $10,000 loan is scheduled to be repaid in equal monthly installments at the end of each month for 36 months. The total interest to be paid over that period is $2,600. Each payment is made 15 days late with interest charged at the same effective annual rate of interest as the loan. Assume that each year contains twelve 30-day months. In which of the following ranges is the additional interest charged each month? Possible Answers A < $1.15 B 2$1.15 but < $1.45 c 2$1.45 but < $1.85 D 2$1.85 but < $2.15 E 2 $2.15 but < $2.35

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

See similar textbooks

Related questions

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a price of…

Q: Consider BOND AAA Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16…

A: Coupon rate 9.4% Settlement date is 16 july 2022 Maturity date is 9 october 2048 To Find: Accured…

Q: What is the tax due and the average tax rate on taxable income of $65.000? Show work for credit. Tax…

A: Tax rate refers to the percentile rate of tax levied by the authoritative government on the desired…

Q: A $3000 loan at 18% per year is being repaid by 10 equal annual payments, the first payment due one…

A: Loan Amount is $3000 Interest rate is 18% per year Total number of payments are 10 To Find: Loan…

Q: Consider BOND AAA Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16…

A: Given,

Q: Alice is considering a vestment, if she undertakes the investment, she will receive 80000 at the end…

A: Answer) Calculation of Net Present Value of the investment Net Present Value = Present value of Cash…

Q: 5. The payments made in a sinking fund are $5, 000 at the end of each quarter for 3 years. Assume…

A: Amount of deposit in each quarter = $5,000 Quarterly interest rate (r) = 0.025 (i.e. 0.10 / 4) We…

Q: olerance of your dient. This means, some peoplé wart Psker bala vill take a lower risk to be safer…

A: Overall risk of portfolio can be the weighted average risk of portfolio.

Q: On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed…

A: Net Interest Margin: Net interest margin is a relative term that computes the gross interest income…

Q: 1. The ownership interest of four partners in a marina are 30% for Mr. P, 25% for Mr. Q, 10% for Mr.…

A: A partnership is a kind of business structure in which two or more people agree to carry out…

Question

plz solve it within 30-40 mins I'll give you multiple upvote

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

Given,

VIEW

Calculation is as follow:

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments payable at the end of each subsequent month with interest at the rate of 1% per month. Required: Using the appropriate table, calculate the equal installments.
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
a. Complete an amortization schedule for a $12,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 11% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance $4 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: % Year 2: % Year 3: % % %24 %24 %24 %24 3.
a. Complete an amortization schedule for a $19,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 6% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent Beginning Balance Year Payment Repayment of Principal Remaining Balance Interest 1 $ 2 3 b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % % Year 3: % % Why do these percentages change over time? 1. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is…
Answer b from the image attached
Prepare an amortization schedule for a four-year loan of $165,280. The interest rate is 4% per year, and the loan calls for equal annual payments. How much interest is paid in the second year? Select one: a.$5,217 b.$1,751 c.$4,051 d.$5,054
a. Complete an amortization schedule for a $26,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 9% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Year 1 2 3 Beginning Balance % Interest Payment b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal % % % Year 1: % Year 2: % Year 3: % Why do these percentages change over time? Interest -Select- ✓ Repayment of Principal Remaining Balance I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid…
Complete an amortization schedule for a $16,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 11% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ $ 2 3 What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % % Year 3: % % Why do these percentages change over time? These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. These…
Complete an amortization schedule for a $48,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 11% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ $ 2 3 What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % % Year 3: % % Why do these percentages change over time? These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. These…
Prepare an amortization schedule for a five-year loan of $59,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year BeginningBalance TotalPayment InterestPayment PrincipalPayment EndingBalance 1 $ $ $ $ $ 2 3 4 5 How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total interest paid $
Complete the first three lines of an amortization schedule for the following loan. Assume monthly payments. amount, $6000; rate, 9%; time, eighteen months Fill out the amortization schedule below, assume monthly payments and round all values to the nearest cent. Payment Amount of Interest Applied to Number Payment Payment Principal 2 3 $ $ $ Balance $6000 $ $