A part) what is the APR on a 5 year (60 month) 25,000 loan with a monthly payment of 500? B part)What is the effective annual rate (EAR) on the loan in a part?

Q: You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…

A: We will use the concept of time value of money. Here each payment is made in a different time period…

Q: You have a loan of $44354 and will repay the loan over 5 years at 2% interest under fixed payment…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: Find the amount (in $) of interest on the loan. Principal $90,000 Rate (%) m/+ Time 9 months LA…

A: Step 1 The amount a lender charges a borrower is called an interest rate, and it is expressed as a…

Q: Your company is offering a mortage loan with the following terms: 5.00% annual interest rate. Period…

A: A mortgage loan is a financial arrangement where a lender provides funds to a borrower to purchase…

Q: 10) Compute the simple interest and final amount of each loan Principal Rate Time A P 400 7% 1 year…

A: Simple interest is that amount of interest which is being charged on the principal amount for the…

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: 13. A loan of 40,000 with interest at 6% payable semiannually is to be amortized by equal payments…

A: The periodic payment for loan is an ordinary annuity where loan amount of of 40,000 is present value…

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: Given the annual interest rate and a line of an amortization schedule for that loan, complete the…

A: Loan amortization is the process of paying off a debt,  over a set period of time through a series…

Q: Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Rate…

A: Ordinary interest, also known as simple interest, is a method of calculating interest on a loan or…

Q: You have taken a personal loan from Bank Muscat for 15,000 OMR and charged with an interest rate of…

A: Loan Amortization Table  is as under -

Q: A loan 1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7% on…

A: Answer a:

Q: correct answers are i) = 16,775. ii) = 15,293.38. iii) for a) 15,131.79 and for b) 167.64 no…

A: A repayment schedule, also known as an amortization schedule or loan repayment schedule, is a table…

Q: ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12%…

A: The question requires calculation of interest on December 31 , 2022. Given that , Interest payable =…

Q: A friend of yours borrows $19,500 from the bank at 8% annually to be repaid in 10 equal annual…

A: Calculation of installment amount: Installment amount = Amount / Present value annuity factor (PVAF)…

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-…

A: Loans are paid by the amount that carry the interest on the loan and paid by the single equivalent…

Q: Given the annual interest rate and a line of an amortization schedule for that the next line of the…

A: An amortization schedule is a schedule that shows the interest paid, annuity paid, and the repayment…

Q: What is the APR that they are required to disclose?

A: To calculate the Annual Percentage Rate (APR) that a bank is required to disclose for a mortgage, we…

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: Loan amount = $175,591 Assume that your broker agents introduce/assess you to a local bank of…

A: Mortgage relates to a long-term fixed asset financing option where bank makes payment for fixed…

Q: what would be the payment adjustments and loan balances for years 3 to 5

A: We are going to solve this question in excel, we can determine the monthly payment by using the…

Q: How much shall be reported as interest income for 2022? 90,000       96,836       120,000…

A: Interest Income - It is the amount of money paid by the borrower to the lenders on the amount of…

Q: Construct an amortization schedule for a $1.000, 3.5% annual rate loan with 3 equal payments. The…

A: Annual Payment = [PV of Annuity * r] /[1 - (1 + r)-n]

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: In this question we need to compute the Exact interest and Ordinary interest. Given: Principal =…

Q: Find the total installment cost and the finance charge for an installment loan with these…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A car loan of $28,641.62 is to be repaid with end-of-month payments of $582.15. If interest is 4%…

A: The number of months can be calculated with the help of NPER function of Excel.

Q: Find the principal of a loan in which the interest rate is 13% per month, payable monthly, and in…

A: The principal of a loan is the initial amount of money that is borrowed or lent. It is the original…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Data given: Principal = $7290 Rate=7% Time=17 days     Formula to be used: Interest = Principal *…

Q: Find the amount (in $) of interest on the loan.

A: Interest: It refers to the monetary charge paid by the borrower to the lender for taking a loan. It…

Q: FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual…

A: Time period is 30 years Loan amount is 800,000 Points =2 To Find: Annual percentage rate

Q: Use the actuarial method to find the payoff amount for the loan paid in full before its due date.…

A: The method which is derived for calculating the amount of allocation between the principal amount…

Q: A loan is to be repaid by an annuity payable monthly in arrears over a 5-year period. The annuity…

A: A repayment schedule, also known as an amortization schedule or loan repayment schedule, is a table…

Q: Consider the following information. Your portfolio is invested 40% percent each in Apple and 60%…

A: The expected return is the anticipated number of returns that a portfolio may generate. Variance is…

Q: The simple interest charged on an 8-month loan of $95,000 is $974. Find the simple interest rate.…

A: Simple interest = Amount*Rate*time in years

Q: (Refer to this word problem The accumulated value of a 3-month loan of P5,000 is P5,085. What is the…

A: Principal (P) = P 5000 Accumulated value (F) = P 5085 n = 3 months = 0.25 years Let r = Simple…

Q: Determine the monthly payment for the installment loan. Use the installment payment formula m = 1-…

A: Given , Amount of financed , P = $1440Annual percentage rate , r = 8%No.of payments per year , n =…

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.