JUGRed Lizard Construction just borrowed $58,500.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthlyloan payment is $540.00, then what is the EAR of the loan?A rate equal to or greater than 11.41% but less than 11.90%A rate less than 9.40% or a rate greater than 11.90%A rate equal to or greater than 10.82% but less than 11.12%A rate equal to or greater than 9.40% but less than 10.82%O A rate equal to or greater than 11.12% but less than 11.41%4

The effective annual rate refers to the interest rate that is being charged on the borrowing amount…

Answered: Red Lizard Co loan payment O A rate equ…

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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a. If the present value of $153 is $139, what is the discount factor? (Round your answer to 4 decimal places.) Discount Factor 0.9084 b. If that $153 is received in year 5, what is the interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Interest rate %
A.What is the PV of an annuity due with 5 payments of $4,200 at an interest rate of 5.5%? a. $16,651.03 b. $18,921.63 c. $21,570.66 d. $19,110.85 e. $22,138.31 B. What is the PV of an ordinary annuity with 5 payments of $8,500 if the appropriate interest rate is 4.5%? a. $38,434.25 b. $31,717.58 c. $37,314.80 d. $44,031.47 e. $29,851.84
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The of the present values of all the payments required to pay off a loan is equal to the original principal of the loan. square root sum economic rate equivalent payment
Next Question Find the total installment cost and the finance charge for an installment loan with these co Amount Financed Down Payment Cash Price Number of Payments Amount of Payment Total Installment Cost Finance Charge $120 none $120 15 $10 $ $ The total installment cost is $ The finance charge is $
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Red Lizard Co loan payment O A rate equ A rate les: O A rate equ O A rate equ O A rate equ 20000