Kindly help me with accounting questions Sarah's student loan requires monthly payments and has aneffective annual rate of 8.24%. The APR on this student loan is closestto:a. 7.75%b. 8.00%c. 8.24%d. 7.92%

Step 1: information givenEffective Annual Rate (EAR) = 8.24% or 0.0824Compounding frequency (n) = 12…

Answered: Sarah's student loan requires monthly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

b)The going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly payments. What is the EAR on such a student loan?
You attend college and have 2 loans: A SUBSIDIZED loan for $40,000 with 3.88% APR, and anUNSUBSIDIZED loan for $28,000 with 4.06% APR. You plan to elect standard repayment. Calculate yourtotal monthly payment for both loans.
Consider a student loan of $10,000 at a fixed APR of 6% for 4 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
For the given student loan, find the interest that accrues in a 30-day month, then find the total amount of interest that will accrue before regular payments begin, again using 30-day months. $6400 at 7.9% interest; student graduates 3 years and 9 months after loan is acquired; payments deferred for 6 months after graduation. Part: 0 / 2 Part 1 of 2 The interest that accrues in a 30-day month is $ places, if necessary. Round to two decimal X oo → K
For the given student loan, find the interest that accrues in a 30-day month, then find the total amount of interest that will accrue before regular payments begin, again using 30-day months. $6400 at 7.9% interest; student graduates 3 years and 9 months after loan is acquired; payments deferred for 6 months after graduation. Part: 0 / 2 Part 1 of 2 The interest that accrues in a 30-day month is $. Round to two decimal places, if necessary. X Ś Es
Consider a student loan of $25,000 at a fixed APR of 9% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
For the given student loan, find the interest that accrues in a 30-day month, then find the total amount of interest that will accrue before regular payments begin, again using 30-day months. $6600 at 7.5% interest; student graduates 3 years and 9 months after loan is acquired; payments deferred for 6 months after graduation. Part: 0 / 2 Part 1 of 2 The interest that accrues in a 30-day month is $ places, if necessary. Round to two decimal X oo
The EZ Credit Company offers to loan a college student $6,000 for school expenses. Repayment of the loan will be in monthly installments of $304.07 for 24 months. The total repayment of money is $7,297.68, which includes the original $6,000, $1,207.04 in interest charges, and $90.64 for a required life insurance policy covering the amount of the loan. Assume monthly compounding of interest. What nominal interest rate is being charged on this loan?
For the given student loan, find the interest that accrues in a 30-day month, then find the total amount of interest that will accrue before regular payments begin, again using 30-day months. $8800 at 6.3% interest; student graduates 2 years and 7 months after loan is acquired; payments deferred for 6 months after graduation. Part: 0 / 2 Part 1 of 2 The interest that accrues in a 30-day month is $ places, if necessary. Round to two decimal X oo K
For the given student loan, find the interest that accrues in a 30-day month, then find the total amount of interest that will accrue before regular payments begin, again using 30-day months. $8800 at 6.3% interest; student graduates 2 years and 7 months after loan is acquired; payments deferred for 6 months after graduation. Part: 0 / 2 Part 1 of 2 The interest that accrues in a 30-day month is $. Round to two decimal places, if necessary. X Ś
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Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. Principal Annual Rate Method for Calculating Minimum Monthly Payment $23,800 3% finance charge+$20+1.5% of principal

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Sarah's student loan requires monthly payments and has an effective annual rate of 8.24%. The APR on this student loan is closest to: a. 7.75% b. 8.00% c. 8.24% d. 7.92%