Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a loan with interest paid in arrears and a 10% compensating balance?        17.36%      18.42%

Q: You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You are obligated to…

A: Calculation of quarterly payments of the loan. Formula A = P (r (1+r)^n) / ( (1+r)^n -1 ) A =…

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: 19) You have student loans totaling $100,000 at 4% with monthly payments over 20 years. If you were…

A: Compound = Monthly = 12Loan Amount = l = $100,000Interest Rate = r = 4 / 12 %Time = t = 20 * 12 =…

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: The compensating balance is the extra amount that needs to be maintained at all times above the…

Q: Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans.…

A: The discount loan refers to a loan where the amount to be repaid is fixed and the amount provided to…

Q: Safewell Co obtains a discount loan at a 12 percent interest rate.  Safewell borrows $100,000 for…

A: Effective interest rate if the amount of interest rate which is charged on the principal amount…

Q: I borrowed $10,000 at 4% on a 60-month term and found the monthly payment to be $184. How much do I…

A: The concept of time value of money will be used to answer this question.   (Note that you have…

Q: We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum…

A: In the first scenario, interest rate is 18% and either $10 or 2.5% is paid as the minimum payment,…

Q: Suppose you want to apply for a loan of $500,000 with repayment tenure of 5 years. The interest rate…

A: The objective of the question is to calculate the Annual Percentage Rate (APR) of the loan. The APR…

Q: Consider a 15 year loan for a $5,245,000 home at a LTV of 85%, three discount points, one…

A: Given information: Home loan is $5,245,000 APR on loan is 8.68% Number of years is 15

Q: What are the weekly payments on a 6-year, $80,000 loan if the interest rate is 14%?

A: Using excel PMT function

Q: You need to borrow $10,000 right now but can repay the loan in 6 months. Since you want to pay as…

A: Simple Interest Loans are the loans in which the interest amount is calculated by multiplying the…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A:

Q: A student looking at a student loan of a size of $10,000, an interest rate of 9%, and a monthly…

A: Loan: It represents the amount borrowed by the borrower from the lender. The borrower makes…

Q: 1. How much would the equal monthly payments be on a student loan of $10,500 that has a ten-year…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: For Problems 17-24, assume you get a 30-year $90,000 mortgage loan at 7.25% interest. 23. How months…

A: Loan Amount = $ 90,000 Terms (n) = 30 years = 30*12 = 360  Rate of interest(r) = 7.25%/12 =0.604167%…

Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Complet parts (a) through…

A: A loan is a financial arrangement in which one party, typically a lender or a financial institution,…

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: Compensating Balance: It is the minimum amount that borrower required to be maintained with the…

Q: What is the total interest paid on a loan of $5,000 at APR = 10% for one year.

A: Loan amount = $5000 Interest rate = 10% Period = 1 year

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: You estimate that you will have $30,000 in student loans by the time you graduate. The interest rate…

A: Amount of the student loan =$30000The interest rate compounded monthly =5%Number of years of loan…

Q: What is the simple interest due on a 5 year loan of 4,00,000 if the annual rate is 6%.

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a…

A: Present value of annuity formula. PV = A *  1-(1+r)-nr where , PV = Present value of annuity  A =…

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: he following loan is a simple interest amortized loan with monthly payments. $7000, 7%, 4 years (a)…

A: A loan indicates a sum borrowed to meet specific needs. The loan amount is generally repaid via a…

Q: Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the…

A: Here, Loan Amount = GHC 5,000 Term of loan = 5 years  Interest rate = 9% Principal payment each year…

Q: Some lenders offer fifteen-year home loans. Investigate the effect of the term on home loans by…

A: Amortization is the systematic process of reducing loan balance. Amortization of loan can be done…

Q: 1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. It is computed…

Q: A student loan with a simple annual interest rate of 2.5% must be paid back in ten years. A student…

A: Given data, Interest rate(r)=2.5% or 0.025 per annum Total interest(I)=P2,000 Time(t)=10 years

Q: A house price of $100,000 can be financed with two loans below with monthly payments. The total…

A: 1. Two-Loan Option: - $80,000 first loan at 5% for 30 years.   - Second loan: $10,000 for 30 years…

Q: A borrower seeks to borrower $175,000, 30-year CPM. The lender discloses to the borrower that the…

A: Step 1 A borrower is a person or company who accepts money from a lender with the promise to repay…

Q: A student looking at a student loan of a size of $10,000, an interest rate of 9%, and a monthly…

A: A loan indicates a sum borrowed. To repay the loan, the borrower would pay the principal amount…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: Assume that you take out a $3000 loan for 47 months at 6.5% APR. How much total interest will you…

A: Loan amount = $ 3000 Period = 47 Months APR = 6.5%   To Find: Total Interest paid

Q: How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your…

A: On the income statement, the expenditure for interest is categorized as a non-operating item. It is…

Q: you were just informed of the interest rate on your student loan. it is started as 0.2% per month.…

A: Interest rate = 0.2% per month Nominal rate per month = ?