If You-Will-Never-Pay-It-Off Loan Company lends you $150 on Monday, and you have to pay $250 after 15 days, what effective rate of interest is it charging? Assume the company compounds money on a 15-day basis

Q: Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The…

A: Given  FV = 1,000 Price = 870

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…

Q: If a lender makes a simple loan of ​$800 for 4 years and charges 3%,then the amount that the lender…

A: The objective of the first part of the question is to calculate the total amount that the lender…

Q: For the following questions, choose the letter of the best answer (Show any work and explanations):…

A: Using straight-line depreciation,, 99, 254); position: relative; display:…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage.  How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable…

A: To find the percentage of interest paid on the loan, we need to calculate the total interest paid…

Q: You want to buy a $32,000 car.  You can finance the car for 1.5% interest for 6 years. What is your…

A: The formula for monthly payment is calculated as follows: Monthly payment = Pr121+r12n1+r12n-1 where…

Q: Write the formula developed for calculating compound interest?

A: Compound interest refers to the interest calculated on the principle amount, thus increasing the…

Q: Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments…

A: Monthly PITI (Principal, interest, tax , insurance) = monthly PI + Monthly tax + monthly insurance…

Q: b. How much would you expect to pay per month on a $20,000 auto loan if you pay the loan back for 48…

A: Given, Loan amount (A) = $20,000 Time period = 48 months Interest rate = 10% = 0.10 and monthly…

Q: Why is the interest 2% instead of 8%

A: Making decisions based on the present value of cash flows is a very practical strategy. When…

Q: Note the cash flow series in the graph. The amounts of 5,000 at years 2 and 4 and X are inflows to…

A: Cash inflow at year 2=$5000Cash inflow at year 4=$5000Cash inflow at year 6=XX=$6000Year=6 yearsr=2%

Q: It refers to the actual or exact rate of interest earned on the principal during a one year period.…

A: There are different ways to calculating interest earned on investment in a specific year, and…

Q: For a simple interest loan with interest rater (expressed as a decimal), the amount A due at the end…

A: Under simple interest, compounding is done on a fixed principal.

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: consider yourself unable to pay this month's rent due to financial issues. A Money lending company…

A: * Annual interest rate = per month interest rate * 12 * Effective annual interest rate : Here we…

Q: You are getting a loan to buy your first home. It is a $250,000 home with three bedrooms and two…

A: In the business cycle, a recession is a negative trend characterised by a decline in production and…

Q: Cole’s Home Solutions policy is to charge 2¼% interest each month on unpaid credit balances. What…

A: Monthly interest rate is 2.5% per month. Then the interest rate can be calculated as follows.…

Q: At the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly.…

A: The formula for payout annuity is given below: P0=d[1-(1+rk)-nk](rk)       where, P0 = the account…

Q: Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of…

A: here we calculate how much is each monthly payment to Mary Smith by following method given below

Q: A new home that costs $490,000 has presented itself. You want to make a 20% down payment and finance…

A: In the mention question, we are expecting an interest rate which is 4.375% but we are given quoted…

Q: A machine costing $24,000 to buy and $3,500 per year to operate will save mainly labor expenses in…

A: Annual cash flow is the total amount of money that flows in and out of a business or individual's…

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: Showing your working out, compute the price of all four bonds:     Face Value Maturity (years)…

A: The bond price is the present value of the future cash flow of the bond.  Bond price = present value…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: Describe the Financial Functions to determine a Loan's Principal andInterest Payments between two…

A: The financial function that determine loan’s principal amount is PPMT. This function is used to…

Q: Hey can someone help me with this? Explain the main differences between amortization, annuity and…

A: The term loan refers to a form of credit vehicle within which a complete of money is lent to a…

Q: Can you explain the meaning of a 20% annual percentage rate (APR) quotedby the credit card company?

A: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and billed…

Q: Accumulate a $40,000 principal for 15 years under the rate (.05, m 4). What compound interest is…

A: Given information: Principal amount (P): $40,000 Time period (t)= 15 years Interest rate (r): 5%…

Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: fracturing cell in a lean Revenues are expec be $39,000 in year one creasing by $13,000 more each…

A: Given that, Initial Cost = 250,000 Year 1 revenue = 39,000 and then increasing by 13,000 per year…

Q: Consider a student loan of $12,500 at a fixed APR of 9% for 30 years. a. Calculate the monthly…

A: Given,  Loan = $12,500  APR = 9%  Time = 30 years

Q: 15,000 =(1+r) 3500+24000 How do I find what is interest (r)? Please provide an breakdown of…

A:

Q: You purchase a home for $436,000 by making a down payment of 15% and financing the remaining amount…

A: Given the below: Purchase price = $436,000 Interest rate = 2.12% compounded monthly or 2.12%/12 =…