The following three one-year "discount" loans are available to you:Loan A: $135.538 at a 5.0 percent discount rateLoan B: $125,538 at a 4.0 percent discount rateLoan C: $145,538 at a 4.5 percent discount rate(a)Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan wouldprovide. (Round answers to O decimal place, eg. 5275.)InterestNet ProceedsLoan A%2424Loan B%24Loan C Calculate the percent interest rate or effective cost of each loan, (Round answers to 2 decimal places, eg. 52.75JLoan ALoan BLoan C

Present value = Loan/(1+discount rate)n Interest = Loan - present value Cost of loan =Interest/net…

Answered: Loan A: $135,538 at a 5.0 percent…

Loan A: $135,538 at a 5.0 percent discount rate Loan B: $125.538 at a 4.0 percent discount rate Loan C: $145,538 at a 4.5 percent discount rate

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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Similar questions

Consider a loan of $8,000 charging interest at j12-6% with monthly payments of $321.50 Calculate the missing amounts in the amortization table. Place the value for A in the first answer box, B in the second and C in the third. PMT Interest Principall Balance 8,000.00 1321.50 40.00 281.50 7,718.50 2 321.50 A C
5
What is the effective annual rate on a loan that charges 8.2 percent, compounded quarterly? Multiple Choice O 8.37 percent O 8.20 percent O 8.46 percent O 8.50 percent
Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan.
Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $70,000 5 4 1 2 years $
Use exact interest method to find rate of interest on a loan of $9000 for 354 days if amount of interest is $$489.50 6.1%5.6%4.9%5.4%
A loan of $25,000 at an annual rate of 14% is repayable through 5 annual year-end payments. The annual payment amount is close to: Answer A. $7,282 B. $5,000 C. $3,500 D. $8156
Buy On Time or Pay Cash Cost of Borrowing 1. 2. 3. 4. 5. 6. 7. 8. Cost of Paying Cash 9. 10. Terms of the loan a. Amount of the loan b. Length of the loan (in years) c. Monthly payment Total loan payments made ($ per month Less: Principal amount of the loan Total interest paid over life of loan Tax considerations: - Is this a home equity loan? - Do you itemize deductions on your federal tax return? What federal tax bracket are you in? Taxes saved due to interest deductions ($ %) Total after-tax interest cost on the loan X months) Annual interest earned on savings (6% X Annual after-tax interest earnings ($ %) X $10,000.00 5 $188.70 no yes 35% $ $ $ 00 00 $
A loan carries a simple interest rate of 5.25 % . The loan was fully repaid by two $5000 payments made 8 and 11 months after the original date of the loan. How much was borrowed at the start? Multiple Choice $10,000 $9601.34 $9661.84 $9540.85 $9329.44
Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000, which she uses as a down payment. She finances the balance at 4.5% APR over 48 months. Before making her 12th Number of 4.0% Payments (Financ 30 5.25 payment, she decides to pay off the loan. Answer parts a) through d) below. 36 6.29 48 8.38 a) Use the given table to determine the total interest Nina would pay if all 48 payments were made. Nina would pay S in interest (Round to the nearest cent as needed.) b) What were Nina's monthly payments? Nina's monthly payments were S (Round to the nearest cent as needed) c) How much interest will Nina save by paying off the loan early? Nina will save S. (Round to the nearest cent as needed.) d) What is the total amount due to pay off the loan? The payoff amount is S- (Round to the nearest cent as needed.)
Business Math Worksheet 8.2: Installment loans-Amount Financed Name Background: An installment loan is repaid in several equal payments over a specified period of time. Usually, you make a down payment to cover a portion of the cash price of the item. The amount you finance is the portion of the cash price that you owe after making the down payment. Amount Financed = Cash Price - Down Payment Down Payment = Cash Price x Percent 1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?
Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Total Purchase Down Amount Monthly Payment Number of Finance Deferred (Cash) Price Payment Financed Payments Charge Payment Price $3,200 20% 2$ $236.00 12 $ $

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