is 2.50%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate caps or floors. Suppose at origination and at the rate reset the LIBOR was 1%. Part 1: What is the loan balance when the rate resets (round to nearest whole number and enter without commas, e.g. 123,456 enter as 123456)? Part 2: What is the annualized true APR for the loan (round two decimal places and enter without % sign, e.g. 4.95% enter as 4.95)?

is 2.50%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate caps or floors. Suppose at origination and at the rate reset the LIBOR was 1%. Part 1: What is the loan balance when the rate resets (round to nearest whole number and enter without commas, e.g. 123,456 enter as 123456)? Part 2: What is the annualized true APR for the loan (round two decimal places and enter without % sign, e.g. 4.95% enter as 4.95)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

using formulas, no tables, correct answers are a) = 0.275454% pa, b) i^12 = 3.310009% pa. C)d^12 = 3.3009% Pa
3. Use the provided chart to solve this problem.
1.A bank CD that pays 7.38 percent compounded quarterly. (Round answer to 2 decimal places, e.g. 15.25%.) what is the effective annual rate %? 2. A bank CD that pays 7.38 percent compounded monthly. (Round answer to 2 decimal places, e.g. 15.25%.) whats is the Effective annual rate %?
1. If the stated annual rate of interest compounded annually is 8% then what is the equivalent annual rate compounded daily? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
Pls show complete steps and both parts or skip it
1. Suppose that a loan of $9,000 is given at an interest rate of 2% compounded each year. Assume that no payments are made on the loan. Follow the instructions below. Do not do any rounding. (a.) Find the amount owed at the end of 1 year. $_____?(b.) Find the amount owed at the end of 2 years. $_____? 2. If the rate of inflation is 2.5% per year, the future price p(t) (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today. p(t)=2000(1.025)t Find the current price of the item and the price 10 years from today. (Roud your answers to the nearest dollar as necessary.) Current Price: $_____?Price 10 years from today: $_____?
Assume an effective compound interest rate i= 3% per annum. Compute the following equivalent rates. In each case, enter your answer as a percentage. a) The nominal interest rate payable semi-annually Number % Enter an answer correct to 4 decimal places. b) The effective interest rate payable quarterly Number Enter an answer correct to 2 decimal places. c) The effective rate of discount per annum Number Enter an answer correct to 2 decimal places. d) The nominal rate of discount payable monthly Number % Enter an answer correct to 4 decimal places.
The nominal interest rate compounded quarterly, ¿(4) is 6%. Let ¿ be the annual effective interest rate, d be the annual effective discount rate, d(12) be the nominal discount rate compounded monthly and be the annual constant force of interest. Calculate i + 2d + 3d(¹2) + 46. A 59.14% B 59.34% C 59.54% D 59.74% E 59.94%
Which results in a lower total interest charge, borrowing $1 comma 5201,520 to be repaid 12 months later as a single-payment loan or borrowing $1 comma 5201,520 to be repaid as a 12-month installment loan? Assume a simple interest method of calculation at 11.5011.50 percent interest. Defend your answer. Note: Round intermediate computations to at least five (5) decimal places. Click on the table icon to view the Monthly Installment Loan Payment Factor (MILPF) table: 1. Question content area bottom Part 1 The amount of interest on the single-payment loan is $enter your response here. (Round to the nearest cent.) Part 2 The amount of interest on the 12-month installment loan is $enter your response here. (Round to the nearest cent.) Part 3 Why does the 12-month installment loan result in lower interest charges? (Select the best choice below.) A. Interest costs are higher when you have the use of the entire $1 comma 5201,520 for the full year…