bank is offering aloan of $25,000 with a nominal interest rate of 18% compoundedmonthly, payable in 60 months. (Hint: The loan origination fee of2% will be taken out from the loan amount.) a) What is the monthly payment? b) If a loan origination fee of 2% is charged at the time of theloan, what is the What is the monthly payment?

Q: What is the APR on this loan?

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing.…

Q: A $2,500 loan is offered for 27 months at 5.2% compounded annually. maturity value? Refer to the…

A: Loan = $2500Interest rate = 5.2% compounded annuallyPeriod = 27 months or 2.25 year

Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…

A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…

Q: Cray Computing needs a 5-month loan for $300,000. Its bank quotes a simple interest rate of 15% on…

A: Therefore, the estimated APR for the loan, assuming monthly compounding, is approximately…

Q: Your business requests a 3-month loan for 50,000. What will be the interest paid at the end of the…

A: The amount of interest paid is calculated as shown below.

Q: A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time.…

A: Repayment of loan is made in fixed instalments for during the loan period which include part of…

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…

Q: The First Common Bank has advertised one of its loan offerings as follows: “We will lend you…

A: Interest: It can be defined as the cost incurred by the borrower related to the amount borrowed.

Q: Cray Computing needs a 8-month loan for $300,000. Its bank quotes a simple interest rate of 12% on…

A: Simple interest: $24,000APR (assuming simple interest): 8%Effective APR (considering compensating…

Q: A $17000 loan is to repaid by monthly payments of $390, the first payment is due in one year's time.…

A: given, pv = $17000 pmt = $390 r=10% m=12

Q: A payday loan company charges 5% interest for a 2 week period. What would be the annual interest…

A: Interest Rate = 5%Period of Interest Charge = 2 WeeksNumber of Weeks in a Year = 52 Calculation of…

Q: Bank ZLY is charging customers a loan rate of 9.2% APR compounded monthly.  What is the equivalent…

A: Equivalent Effective Annual rate= It refers to that interest rate which is actually earned on a…

Q: Erindale Bank offers you a $58,000, four-year term loan at 7.0% annual Interest. What will your…

A: To calculate the annual loan payment, we can use the formula for the present value of an annuity:…

Q: A car dealer offers payments of S522.59 per month for 48 months on a S25, 000 car purchase (Assume a…

A: From the question, we can identify the following values:Monthly payment (PMT) = $522.59Number of…

Q: Cerise Company would record a note payable of_____, if the terms of the loan with a bank are as…

A: Present value (PV) of an future amount is equal amount of such at present, discounted at a…

Q: Number of payments = (enter a whole number) PV=$ I/Y= PMT=$ % Complete the amortization table below.…

A: By rearranging the PV of ordinary annuity formula below, we can determine the n (number of payments)…

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: Calculate the simple interest due on a 54-day loan of $2600 if the interest rate is 6%. (Round your…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

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.