from the table of loan installment below, if flat rate per month isn't 1.0022% but equal to 1.0000% (monthly installment for 3 years) . Please show method to calculatethe effective rate per year and month? Is that has formula.
from the table of loan installment below, if flat rate per month isn't 1.0022% but equal to 1.0000% (monthly installment for 3 years) . Please show method to calculatethe effective rate per year and month? Is that has formula.
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
Related questions
Question
100%
from the table of loan installment below, if flat rate per month isn't 1.0022% but equal to 1.0000% (monthly installment for 3 years) . Please show method to calculatethe effective rate per year and month? Is that has formula.
Transcribed Image Text:Effective Rate
1.7703% Per month
Flat Rate
1.0022% Per month
total financing
250,000 unn
Month
Loan Beginning
Installment
Interest
Capital
Loan Remaining
Reduce
250,000.00
1
250,000.00
9,450.00
4,425.65
5,024.35
244,975.65
2
244,975.65
9,450.00
4,336.70
5,113.30
239,862.35
3
239,862.35
9,450.00
4,246.18
5,203.82
234,658.53
4
234,658.53
9,450.00
4,154.06
5,295.94
229,362.59
229,362.59
9,450.00
4,060.31
5,389.69
223,972.90
6.
223,972.90
9,450.00
3,964.90
5,485.10
218,487.80
218,487.80
9,450.00
3,867.80
5,582.20
212,905.60
8
212,905.60
9,450.00
3,768.98
5,681.02
207,224.58
9
207,224.58
9,450.00
3,668.41
5,781.59
201,442.99
9,450.00
9,450.00
10
201,442.99
3,566.06
5,883.94
195,559.05
11
195,559.05
3,461.90
5,988.10
189,570.95
12
189,570.95
9,450.00
3,355.90
6,094.10
183,476.85
13
183,476.85
9,450.00
3,248.01
6,201.99
177,274.87
14
177,274.87
9,450.00
3,138.22
6,311.78
170,963.09
15
170,963.09
9,450.00
3,026.49
6,423.51
164,539.58
16
164,539.58
9,450.00
2,912.78
6,537.22
158,002.35
17
158,002.35
9,450.00
2,797.05
6,652.95
151,349.40
18
151,349.40
9,450.00
2,679.28
6,770.72
144,578.68
6,890.58
7,012.50
19
144,578.68
9,450.00
2,559.42
137,688.09
20
137,688.09
9,450.00
2,437.50
130,675.59
21
130,675.59
9,450.00
2,313.36
7,136.64
123,538.95
22
123,538.95
9,450.00
2,187.02
7,262.98
116,275.96
23
116,275.96
9,450.00
2,058.45
7,391.55
108,884.41
24
108,884.41
9,450.00
1,927.60
7,522.40
101,362.00
25
101,362.00
9,450.00
1,794.43
7,655.57
93,706.43
9,450.00
9,450.00
26
93,706.43
1,658.91
7,791.09
85,915.34
7,929.02
8,069.38
27
85,915.34
1,520.98
77,986.32
28
77,986.32
9,450.00
1,380.62
69,916.94
29
69,916.94
9,450.00
1,237.77
8,212.23
61,704.71
30
61,704.71
9,450.00
1,092.33
8,357.67
53,347.05
31
53,347.05
9,450.00
944.38
8,505.62
44,841.43
32
44,841.43
9,450.00
793.81
8,656.19
36,185.24
33
36,185.24
9,450.00
640.57
8,809.43
27,375.81
34
27,375.81
9,450.00
484.62
8,965.38
18,410.43
35
18,410.43
9,450.00
325.91
9,124.09
9,286.34
36
9,286.34
9,450.00
163.66
9,286.34
0.00
340,200.00
90,200.00
250,000.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
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.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
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