An obligation of P25,000 with interest of 5% compounded semi-annually must be paid at the end of every 6 months for 4 years. Find the following: Question 17 options: What is the principal/original amount borrowed? What is the total number of conversion periods? What is the periodic rate? How many conversion/compounding periods are there in a year? What is the given interest rate? Number of years the loan is payable? 1. P25,000 2. P125,000 3. 0.05 4. 8

An obligation of P25,000 with interest of 5% compounded semi-annually must be paid at the end of every 6 months for 4 years. Find the following: Question 17 options: What is the principal/original amount borrowed? What is the total number of conversion periods? What is the periodic rate? How many conversion/compounding periods are there in a year? What is the given interest rate? Number of years the loan is payable? 1. P25,000 2. P125,000 3. 0.05 4. 8

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 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
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