Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) Amount Financed Number of Monthly Payments Finance APR Payment Charge $100,000 72 $2,045.50

Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) Amount Financed Number of Monthly Payments Finance APR Payment Charge $100,000 72 $2,045.50

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

See similar textbooks

Related questions

Q: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on…

A: Purchase Price =$711 Down Payment = $711 * 10% = $71.10

Q: What are the interest cost and the total amount due on a six-month loan of $2,100 at 13.5 percent…

A: Simple annual interest cost is the net amount of interest that is being charged on the principal…

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

A: An amortization schedule is a table that shows the breakdown of each loan payment, detailing how…

Q: A Forward Rate Agreement contains an agreed interest rate of 5.75% on a 6-month loan. If settled at…

A: Forward rate agreements are used by entities to hedge against the interest rate risk. It is an…

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

A: Principal Amount = p = $7310 Interest rate = r = 7% Time = 13 days

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: The annual percentage rate is the rate of interest that is charged on the borrowed amount by the…

Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…

A: When funds are financed from outside, they carry a finance charge which is the cost of using those…

Q: Label all final answers with the correct units, if applicable. Unless otherwise stated, use 4…

A: Loans are paid by equal monthly installments and these monthly installments carry payment for…

Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…

A: Down payment =Purchase (Cash) Price * Downpayment % = 3200*20% = $ 640

Q: The annual rate of interest on a mortage loan is 11 1/2% the monthly interest payment is $453.76..…

A: Annual interest rate = 11.5% Monthly interest rate = Annual interest rate / 12 = 11.5%/ 12…

Q: Calculate the monthly payment by using the loan amortization table: (Round your answer to the…

A: Annuity: An annuity is defined as a series of payments, whether received or made, that are equal and…

Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…

A: Data Given, Loan Amount (Principle) = $150000 Time period of loan (n)= 20 years Payment Interval =…

Q: Scenario 2: You need a $12,000 loan to buy a good used car. Your bank offers a 3-year loan with an…

A: Monthly payment refers to an amount that is paid every month until the loan period including…

Q: If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the…

A: The Effective Annual Rate (EAR), also known as the annual equivalent rate (AER) or annual percentage…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The finance charge is the charge which is paid by the borrower on the amount he borrowed is called…

Q: Find the effective rate for a payday loan which charges $37.78 for a two week loan of $280. The…

A: The Effective Annual Rate (EAR) is the interest rate that is adjusted for compounding over a given…

Q: With respect to using traditional lending rules to determine how much of a mortgage a borrower…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Using excel Rate function

Q: Find the annual percentage rate using the annual percentage rate table. Here are some conditions of…

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

Q: A loan is offered with monthly payments and a 9.75 percent APR. What's the loan's effective annual…

A: APR = 0.0975n = Number of compounding 12 (i.e. monthly compounding)EAR = ?EAR is annual rate after…

Q: The interest rate on a $118,000 loan is 8.9% compounded semiannually. The monthly payments on the…

A: a) To calculate the interest component of Payment 210, we first need to find the balance of the loan…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Finance Charge is the total interest paid during the time period of the project. Finance charge is…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: The following installment loan is being paid off early. Calculate the rebate fraction, the finance…

A: The finance charged is the total cost that has charged for borrowed the specified amount for…

Q: Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for…

A: Amount financed = Purchase price * (1 - Downpayment %)

Q: What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

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: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on…

A: A method of the loan in which the amount of installment is evaluated by combining the principal and…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Calculate the amount financed, the finance charge, and the total deferred payment price for the…

A: Concept: The total deferred amount is defined as the amount of compensation based under the plan…

Q: each of the following ordinary annuities, calculate the interest and principal portion of the…

A: Principal Amount of loan/ Investment: When any amount borrowed from the lender/banks/Financial…

Question

Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR
formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.)
Number of
Amount
Financed
Monthly
Payment
Finance
APR
Payments
Charge
$100,000
72
$2,045.50

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

Step 1

VIEW

Step 2

VIEW

Step 3

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

Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the amount (in $) of interest for the loan. (Round your answers to two decimal places.) Principal Rate (%) Time (days) Exact Interest Ordinary Interest $7,290 7 17 $ $
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,910 48 $550.47 $ $ %
Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) $7,700 10.4 Time days Interest $226
Compute the size of the final payment for the following loan. Periodic Payment $ 590 Payment Payment Period Made at: 6 months beginning Principal $ 9100 Interest Rate Compounding Period semi-annually % 9 The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th payment
a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments If you borrow $9,500 at $760 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) Effective rate elp Save & Exit % 4 Submi
Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Purchase (Cash) Price $3,200 Down Payment 20% Amount Financed Monthly Number of Payment Payments $234.00 12 +A Finance Charge tA Total Deferred Payment Price
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.)
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $6,500 36 10% $ $ $
Create a loan repayment schedule for a loan of $30295 and payments of $8482 made annually. Assume a rate of interest of 6.13% per year compounded annually. What is the balance remaining after the second payment?
Use the table to find the monthly payments on the given loan. Amount Rate Time $63,000 12% 3 years table of monthly payments on a $1,000 loan. The monthly payments for this loan are? (Type an integer or a decimal.)
Find the following. (Round your answers to the nearest cent.) FinanceCharge Number ofPayments Frequency Amount Number ofPayments Left $9.10 12 Monthly $15 5 (b) the amount needed to pay off the loan

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS