What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is $22,000. This is a seven year loan with monthly (end of the month) payments of $730.71 Question 16 options: 1) 1% 2) 12.68% 3) 3.15% 4) 2.90% 5) 45.09% 6) 28.17% 7) 43.58% 8) 40.92% 9) 36.39%

What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is $22,000. This is a seven year loan with monthly (end of the month) payments of $730.71 Question 16 options: 1) 1% 2) 12.68% 3) 3.15% 4) 2.90% 5) 45.09% 6) 28.17% 7) 43.58% 8) 40.92% 9) 36.39%

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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Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.)
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $50,000 60 $1,176.33 $ $ %
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) Amount Number of Monthly Financed Payments Payment $14,000 36 Need Help? Read It $503.00 $ Finance Charge Finance Charge per $100 APR %
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
Monthly payment
How much is your loan payment based on the following: Time - 5 years Interest Rate - 5.8% Principle Balance - $28,000 Assume the interest rate is an APR. If needed, the discount rate is 4.2%.
What is the effective interest rate (APY) for a loan of $8,500 at 12% APR compounded monthly? use the formula method.
A borrower takes out a 30-year mortgage loan for $150,000 with an interest rate of 6% plus 4 points. What is the effective annual interest rate on the loan if the loan is carried for all 30 years? 5.63% 5.35% 6.36% Ⓒ 5.00%
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A $178,000 mortgage loan is offered at an APR of 4%. Follow the instructions below the table. The loan payment formula was used to calculate the monthly payments for the loans and results are reported in the table below. You do NOT have to verify the given payment entries (you already used the formula for calculating payments in the first part Loan term in years Monthly Payment on $178,000 loan (in $) Total amount paid back over the full loan term (in $) Interest over the full loan term (in $) Difference in monthly payment from option above (in $) t = 15 years Pmt = $ 1316.64 F = I = No entry here t = 30 years Pmt = $ 849.80 F = I = Difference in MONTHLY payment t = 40 years Pmt = $ 743.93 F = I = Difference in MONTHLY payment t = 50 years Pmt = $ 686.56 F = I = Difference in MONTHLY payment For each loan term option, calculate the total amount paid back over the…
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a car loan of 25,293.25 is to be repaid with end-of-month payments of 554.68. If interest is 7% compounded monthly how long is the term of the loan? State your answer in years and months (from 0 to 11 months).

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