Eliott Credit Corporation wants to earn an effective annual return on its consumer loansof 13 percent per year. The bank uses daily compounding on its loans. What interest rateis the bank required by law to report to potential borrowers?Multiple Choice13.00%11.00%12.22%

The formula for calculating the effective annual rate is

Answered: Eliott Credit Corporation wants to earn…

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

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Ricky Ripov’s Pawn Shop charges an interest rate of 18.25 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
BB&C bank has agreed to lend you $30,000 today, but you must repay $42,135 in 3 years. What rate is the bank charging you? a. 12% b. 13% c. 11% d. 10%
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Finance Amount Financed Number of Monthly Payments Payments Payment Made Rebate Fraction Charge Rebate $4,600 36 $163.33 32 +A $ Loan Payoff
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,900 18 $126.89 13 $ $
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,800 18 $126.89 12 $ $
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $4,700 36 $162.33 31 $ $
Help please and thanks! 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% RQ 22.4. Edison Mfg. needs to borrow $50,000 for six months. If the annual interest rate is 15%, what is the APY of a discount loan with a 10% compensating balance? 17.56% 19.01%
Please send me the solution of the question and answer thanjs

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Eliott Credit Corporation wants to earn an effective annual return on its consumer loans of 13 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Multiple Choice 13.00% O 100% 12.22%