Suppose you purchase a set of living room furniture for $1,300. You pay 10% down and sign a contract to repay the balance in 10 equal monthly payments. The finance charge on the balance is 7% simple interest. Estimate the annual percentage rate (APR) to the nearest tenth of a percent.

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $518,000 home…

A: When we take a loan we usually make fixed periodic payments toward servicing the loan. The fixed…

Q: You purchase an RV by making a down payment of $10,500. The terms of your finance agreement have an…

A: The idea of a time value of money (TVM) holds that a quantity of income is valuable greater now than…

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: You are ready to buy a house and you have $75,000 for a down payment and closing costs. Closing…

A: Here, Amount for Down Payment and Closing Cost is $75,000 Closing Cost id 4.5% of Loan Value Annual…

Q: You purchase an RV by making a down payment of $10,700. The terms of your finance agreement have an…

A: The down payment is $10,700 The annual interest rate is 2.66% compounded monthly The total number of…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

Q: You purchase a living room set for $10,000. they offer a loan option of 12% compounded monthly for…

A: The monthly payment will depend upon the loan balance, interest rate, and time period.

Q: You take out a consumer loan at your credit union for new insulated windows for your house. The…

A: Given: Rate=7.5%NPER=71PV(Present value)=8250 -20% ×8250=6600

Q: you obtain a 20-year mortgage loan of $198,000 at an annual interest rate of 8.3%. The annual…

A: Monthly housing expenses include the payment for mortgage, payment for insurance and payment for…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: An apartment unit in a rural area that sells for P1,800,000 can be purchased under terms requiring…

A: Price of  apartment (PV) = P1,800,000 Number of monthly payments (n) = 200 Interest rate = 12%…

Q: You wish to buy a $10,000 dining room set.  The furniture store offers you a three-year loan with an…

A: Given information: Present value or principal value is $10,000 Number of years of loan is 3 Interest…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: Assume that you want to buy a house and have to borrow $80.000 over a term of 25 years. The annual…

A:

Q: Suppose you want to apply for a loan of $500,000 with repayment tenure of 5 years. The interest rate…

A: The objective of the question is to calculate the Annual Percentage Rate (APR) of the loan. The APR…

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: nk will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of…

A: Effective interest rate is the interest rate after considering the impact of compounding on interest…

Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow…

A:

Q: A new furniture set costs $ 3200. If you make a down payment of $ 400 and finance the rest at a rate…

A: Repayment amount refers to the total amount taht is being paid for the repayment of the amount…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $519,000 home…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Compound = n = Monthly = 12Present Value = pv = $25,000Time = t = 5 * 12 = 60Interest Rate = r = 9 /…

Q: You have taken out a 60-month, $23,000 car loan with an APR of 4%, compounded monthly. The monthly…

A: The loan Amortization Schedule gives the information about your loan and how you'll repay it. The…

Q: How much money will the bank loan you? How much can you offer for the house?

A: Loan payments: These are payments made by the borrower to the lender of the loan. These payments…

Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…

A: Simple interest is the type of interest that is calculated on the original amount, It is calculated…

Q: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the…

A: a-1Present value = Cash flow/(1+interest)^number of years that is present value=

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: The objective of the question is to calculate the annual payment for a loan of $1,000,000 at an…

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: monthly paymen

A: Monthly payment refers to the equivalent amount that is paid every month for the loan duration. The…

Q: A house that sells for P900,000 can be purchased under terms requiring 100 monthly payments. Assume…

A: Given that;Present value is P900,000Number of periods is 100

Q: Define the annual percentage rate (APR). Suppose you borrow $3,621.15 and take out a loan with an 8%…

A: Annual Percentage Rate (APR)The Annual Percentage Rate (APR) is the yearly cost of borrowing money…

Q: You have taken out a 60-month, $26,000 car loan with an APR of 4%, compounded monthly. The monthly…

A: Loan Amortization Schedule gives the information of your loan and how you'll repay it. The payment…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.