O Calculate the Annual Percentage Rate (APR) for each:a. One Lump Sum:Calculate the APR for a $2000 loan that is paid off in one lump sum atthe end of the year. The stated annual interest rate is 8%.[Make sure to show your work]b. 12 Equal Monthly Payments:Calculate the APR for a $2000 loan that is paid off in 12 equal monthlypayments. The stated annual interest rate is 8%.[Make sure to show your work]

The Annual Percentage Rate (APR) for a $2000 loan with an 8% stated annual interest rate, when paid…

Answered: O Calculate the Annual Percentage Rate…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You are obligated to pay a flat payment at the end of each QUARTER. (a) Make a loan amortization table; (b) Plot a figure to show the flat payment, payment to interest, and payment in each quarter.
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