Define the term an amortized loan?

Q: A bank pays one percent interest on savings account four times a year. What is the actual annual…

A: Interest rate is charged by the lender for using its money.

Q: What can be best said about a banker whose interest rate is 20% on a one-year loan worth $1000…

A: A loan is a sum of money that is borrowed by an individual or organization from a lender with an…

Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…

A: The interest rate is the return that an individual receives from the financial asset in the economy.…

Q: Why would someone choose a fixed rate loan over a variable rate loan?

A: In the field of economics, a loan is defined as the act of lending money or resources by one party…

Q: At 5.2 percent interest, how long does it take to double your money?

A: Let the present amount be P. P is compounded annually at the rate of 5.2% for n number of years

Q: We need to find an effective interest rate that covers the payment period. Illustrate this concept…

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: What part of a savings investment should not be spent? O Interest Base amount All of the above O…

A: Spending is the process of buying goods, service and other things. For example, consumer would like…

Q: On what factors does The cost of a loan depend?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: What is fractional ownership?

A: Ownership:The term ownership refers to the legal right or exclusive right over the commodity. For…

Q: When investing or saving money for retirement, which type of interest would benefit the most from?…

A: When investing or saving money for retirement which type of interest would benefit the most from?…

Q: could you show how to determine the bond's present value without a calculator?

A: When interest rate rises to 4%: Given, Face value= future value= $1,000 Yield to maturity= 4% Time=…

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: How can we use the capital recovery factor?

A: The capital recovery factor (CRF) is a type of ratio which is used to calculate the present value of…

Q: A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a)…

A: The effective interest rate will be including the compounding period into consideration while…

Q: An engineer invests $5,800 at the end of every year for a 35-year career. If the engineer want $1…

A: Rate of return is a financial measure used to evaluate the profitability or performance of an…

Q: Which type of mortgage provides the borrower with a stable and unadjusted payment rate for the…

A: which type of mortgage provides the borrower with a stable and an adjusted payment rate for the…

Q: What does the interest rate you determine represent?

A: The interest is a specific percentage of the principal amount that is lent, borrowed, or deposited…

Q: Explain what is Principal Plus Interest?

A: Principal plus interest is that amount which is paid by the borrower to the lender after the agreed…

Q: List the elements of Transactions involving Interest?

A: Interest is a charge made to a lender in addition to the principal by a borrower, and it is a…

Q: What are the major postpurchase processesengaged in by consumers?

A: After purchasing a particular product, a consumer can go through various levels of post-purchase…

Q: When a loan is amortized, it means: a. The principal is never repaid, only interest b. The principal…

A: An amortized loan is one of the types of loan which has scheduled and periodic payments. It is…

Q: Whenever the interest charge for any interest period (a year, for example) is based on the remaining…

A: The rate of interest is the percentage (%) of a loaned sum that a lender charges the borrower as…

Q: What is the meaning of interest rate

A: Financial institutions play an important role in an economy. They collect money from people who have…

Q: What does the income statement summarize?

A: Income statement explains about the revenues and expenses so as to know the profit or loss…

Q: What is Annual Effective Yield?

A: Yield refers to the earnings that are generated and then realized on a particular investment over a…