Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid$1,000 down and financed the rest, with the agreement to pay nothing for the entire first year andthen to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13thmonth).a. What nominal interest rate is Aerotron paying on the loan?%b. What effective interest rate are they paying?%Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005.c. How much of the 14th month's payment is interest? How much is principal?payment interest = $, and principal = $d. How much of the 18th month's payment is interest? How much is principal?payment interest = $, and principal = $e. How much of the 22nd month's payment is interest? How much is principal?payment interest = $, and principal = $Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.

A loan refers to a contract where a sum is borrowed on the promise of future repayment along with…

Answered: Aerotron Electronics has just bought a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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can it be solve please Useful Houseware Co. Ltd has received a $35,300 loan from Bank Corporation Limited. The annual payments are $4,589.81. If the company is paying 8.5% interest per year, how many loan payments must the company make? (Note on formatting: Round off to the nearest whole number.)
Red Lizard Construction just borrowed $53,600.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthly loan payment is $600.00, then what is the EAR of the loan? A rate less than 10.44% or a rate greater than 14.72% A rate equal to or greater than 12.43% but less than 13.86% A rate equal to or greater than 10.44% but less than 11.06% A rate equal to or greater than 11.06% but less than 12.43% A rate equal to or greater than 13.86% but less than 14.72% 100
Lush Gardens Co. bought a new truck for $52,000. It paid $5,720 of this amount as a down payment and financed the balance at 4.08% compounded semi-annually. If the company makes payments of $1,700 at the end of every month, how long will it take to settle the loan? a. How many deposits will the company have to make to settle the loan? Round up to the next whole number b. How long will it take to settle the loan? years months E Express the answer in years and months, rounded to the next payment period
You just borrowed $1,000,000 using a 30 year home loan that's interest-only for the first 4 years, and principal and interest (P&I) for the remaining 26 years. The interest rate is 5.76% pa compounding monthly which is not expected to change. Which of the following statements is NOT correct? Select one: a. The effective monthly rate is 0.048 per month, given as a decimal. If the interest rate falls, the IO and P&I monthly payments will fall. b. If the IO term was one year shorter so the P&I term was one year longer, then the monthly payments over the P&I term would be lower. c. The IO loan's perpetuity factor' is 208.333333, while the P&I loan's annuity factor is 161.568937. d. The IO loan payments will be $4,800 per month, rounded to the nearest cent. e. The P&I loan payments will be $6,189.31 per month, rounded to the nearest cent.
A radio commercial for a loan company states: "You only pay 36¢ a day for each $500 borrowed." If you borrow $2,710 for 162 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year.) a. Amount you repay=$(Round to two decimal places.) ID
Dpn't provide handwritten solution ... The Taylors have purchased a $300,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 7%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years?
A new engineering graduate who started a business borrowed money for 1 year. The amount of the loan was 23,800 JD, and it had an interest rate of 10% per year. However, the bank made him buy a loan insurance that cost 5% of the loan amount. In addition, the bank charged a loan setup fee of 300 JD. What was the effective interest rate paid?
You just borrowed $15,000 from a finance company to start a business. If you are required to repay $16,800 interest and principal in one year, what is the nominal interest rate that the finance company is charging? If inflation is 2.5%, what is the expected real rate of interest?
Pool-N-Patio World needs to borrow $50,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 73% interest. (Round your answers to the nearest 4 cent.) (a) Find the size of the monthly bank payment. Interest Portion Total Payment Balance Due (b) Prepare an amortization schedule for all four months of the loan. Principal Portion A A A Payment Number 0 1 2 3 4 A $ A LA +A $ A A A A A $ +A $ +A
16) A car loan for $33,550 has an interest rate of 5.25% and is amortized over 60 months. What is the monthly payment on the loan? a. $ 425.78 b. $679.92 17) c. $636.98 d. $351.24 Using the same facts as #16, what is the balance of the loan after 3 full years of payments? a $ 14,482 b. $ 8,299.28 c. Zero. d $15,942
The Patel Company has several financial issues to solve. As the company’s Financial Analyst you have been asked to answer the following 2 questions: Their bank will lend them $100,000 for 90 days at a cost of $1,200 interest. What is the company’s effective annual rate? A major supplier has granted credit terms of 1/10 N120. Assuming the company can borrow any amount of money at the rate you have calculated above (in part 1), should the company take the discount? (Your answer must be supported with a calculation of the cost of not taking the discount – using either simple or effective annual rate)
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