Tina Mier must pay a $5,000 furniture bill. A finance company will loan Tina $5,000 for 8 months at a 9.21% discount rate. The financecompany told Tina that if she wants to receive exactly $5,000, she must borrow more than $5,000. The finance company gave Tinathe following formula:What to ask for = Amount of cash to be received + (1 - (Discount rate Time of loan))a. Calculate Tina's loan request.Note: Do not round intermediate calculations. Round your final answer to the nearest cent.Loan requestb. Calculate the effective rate of interest.Note: Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.Effective rate of interestD%SE

Interest=Rate×Principal×Time×1100

Answered: Tina Mier must pay a $5,000 furniture…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ursula wants to buy a $21,000 used car. She has savings of $2,000 plus an $800 trade-in. She wants her monthly payments to be about $302. Which of the following loans offers monthly payments closest to $302? A. 6% APR for 60 months B. 6% APR for 72 months C. 6% APR for 36 months D. 6% APR for 48 months Please use BA II where applicable.
Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %
Van Buren Resources Inc. is considering borrowing $100,000 for 182 days from its bank. Van Buren will pay $6,000 of interest at maturity, and it will repay the $100,000 of principal at maturity. a. Calculate the loan’s annual financing cost. b. Calculate the loan’s annual percentage rate. c. What is the reason for the difference in your answers to Parts a and b?
am. 83.
The first product Suzie represents is a short term loan. Here, customers can borrow small amounts of money, and have some options for the amount of time to repay the loan. Based on Wagon Financial’s past experience, the most typical loan amount for customers of this service is $1,250. The table below shows the repayments for the loan term options available. 2months 3 months 4 months 1,600. 1,650 1,700 a. We see that each additional month will cost the borrower $50 in additional interest. Calculate the equivalent simple annual interest rate for this $50 per month.
Kim is shopping for a car. She will finance $14,000 through a lender. The table to the right shows the monthly payments per thousand dollars borrowed at various APRs and terms. Use the table to answer parts (a) through (c) below. APR, r 4 Term, t (in years) 5 6 7 8 0.05 $23.03 $18.87 $16.10 $14.13 $12.66 0.055 $23.26 $19.10 $16.34 $14.37 $12.90 0.06 $23.49 $19.33 $16.57 $14.61 $13.14 0.065 $23.71 $19.57 $16.81 $14.85 $13.39 0.07 $23.95 $19.80 $17.05 $15.09 $13.63 0.075 $24.18 $20.04 $17.29 $15.34 $13.88 (a) One lender offers Kim an APR of 6% for a 6-yr term. What would be the amount of Kim's monthly payment? $
Vijay
Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $236.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ 1459.68 (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) ______ %
A Hepplewhite sofa costs $3,000 in cash. Jaquanna Wilson will purchase the sofa in 36 monthly installment payments. A 12% per year finance charge will be assessed on the amount financed. Find the finance charge, the installment price, and the monthly payment. The finance charge is $ . (Type an integer or a decimal.)
I want to borrow $700 for ten days from a payday loan store. Here are the terms for the payday loan: "The payday loan finance charge is $12 per $100 borrowed up to $400, and $10 per 100 on the amount over $400." A. What is the dollar amount of interest I am paying? B. What is the APR of this loan?
Solve for the magnitude and direction of the magnetic force. I'll upvote if complete and typewritten. Do not answer if you already answered this, i'll downvote. Thank you
Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed the balance with monthly payments of $236.38 for 36 months. (a) What is the finance charge (in $) on the loan? $ 1,559.68 Incorrect: Your answer is incorrect. (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) 9.68 Incorrect: Your answer is incorrect. %

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS