Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
Related questions
Question
![You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is
quoted as 13 percent plus 3 points.
What is the EAR? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
Effective annual rate
Is your answer affected by the loan amount?
O Affected
16.79 %
Not affected](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6572e392-4ce5-44fb-8e52-fb7e5738730f%2F931e543c-4877-400f-8354-78711e6a83dc%2Fm4laomb_processed.png&w=3840&q=75)
Transcribed Image Text:You are looking at a one-year loan of $10,000. The interest rate on a one-year loan is
quoted as 13 percent plus 3 points.
What is the EAR? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
Effective annual rate
Is your answer affected by the loan amount?
O Affected
16.79 %
Not affected
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