Answered: You borrow $85,000; the annual loan…

Business

Finance

You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged?

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,...

See similar textbooks

Related questions

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: Ans. Whenever an entity is acquiring the target entity, the assets would be taken in fair value of…

Q: Use the following to answer the next 2 questions: The following refers to a purchase of a machine by…

A: Journal entry: It is the duty of the accountant to record business economic and non-economic…

Q: Use the following information to answer the next 2 questions: On January 1, 2020, Aggie Company…

A: Present value interest factor of an annuity (PVIAF) is used for calculation of present value of a…

Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…

Q: 3. Time Value of Money Assume that ten years from now, you will need $10,000 and that your bank…

A: The concept of the time value of money states that money today has more value than the same amount…

Q: Information from Pascua Company for the year ended December 31, 2020: Units sold 60,000 Units…

A: Cost Accounting - "A systematic set of methods for recording and reporting measures of the cost of…

Q: Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash…

A: Given Information: Lester Capital = $48,630 Torres Capital = $65,630 Hearst Capital = $26,190…

Q: The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my…

A: The working and the answer is given below :

Q: Swifty Co. uses a periodic inventory system. Its records show the following for the month of May, in…

A: First-in First-Out Method - Under the First-in First-Out Method a company uses inventory in the…

Q: An accountant wishes to find the present value of an annuity of $1 payable at the beginning of each…

A: The value of money today is not the same as the value of money in the future. For example, the value…

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: When an entity called parent entity acquired more than 50 percent shares of another company,then…

Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost…

A: Here in this question, we are required to calculate make or buy decision. In this type of decision…

Q: Question 8 At January 1, 2020, Sandhill Company had plan assets of $283,600 and a projected benefit…

A: Pension worksheet is prepared to record all expenses and benefits related to pension of an…

Q: HELP ASAP (

A: To address this problem effectively, it's crucial to comprehend the cost allocation process within…

Q: Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2020. To…

A: The answer for the multiple choice question and relevant working are presented hereunder : Under the…

Q: Problem # 1 Assume the following for Sam Corporation: 2018 $ 20,000 30% 2019 $ 30,000 2020 (current…

A: Carry loss back and forward: Federal tax laws provide tax payers with an option to carry back the…

Q: Ultra Petroleum (UPL) has earnings per share of $1.56 and a P/E ratio of 32.48. What's the stock…

A: The provided information are: Earning per share = $1.56 P/E ratio = 32.48

Q: Sarasota Corporation, having recently issued a $20,134,100, 15-year bond issue, is committed to make…

A: Sinking Fund refers to amount which is set aside from profits to meet future known liability. It…

Q: 2. A company determines that the maximum they should pay for a new machine is $46,679. The company…

A: cost of new machinery = $46,679 net cash flow for 7 years= $8,000 per year interest rate = 5%…

Q: Interview someone who borrowed from the bank, know how much is the rate pplied to the loan, term of…

A: A loan is made if, in return for the payment of both the principal and interest, you obtain cash or…

Q: orepare a statement of cash flows. Use the indirect method of reporting cash flows from operating…

A: Solution: Statement of cash flows for year 2 is as under:

Q: $20,000. $60,000. $110,000. $120,000. $230,000.

A: In the goodwill method, the fair value of the firm is determined. The fair value is compared to the…

Q: The provisions of a will currently undergoing probate are: "One thousand shares of Wal-mart stock to…

A: The working and the answer is given below

Q: The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets,…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: Direction: Solve the problem involving buying and selling of products. Show all your solutions.…

A: Break even shows that the total fixed cost of the entity equal to the Contribution which it earned…

Q: During the last ten minutes of trading, call options on Commart Inc. common stock have risen from…

A: The provided information are: Initial value of the call option (C0) = $1.20 New value of the call…

Q: When an estate does not have sufficient assets to satisfy all claims against it, what claim has the…

A: When there aren't enough assets to pay out every claim against an estate, the subject of claims'…

Q: 14. A 90-day government bill was bought by an investor for a price of K95 per K100 nom- inal. After…

A: Solution:- Given, Annual effective rate of Return formula = (Selling price/Buying price)^(1/n)-1…

Q: On January 1 of the current year, Stuart borrows $150,000, pledging the assets of his business as…

A: Interest expense has been classified into different categories for tax purpose: Active Trade…

Q: Jewel Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment. The…

A: Given: Fair value of lease = $34,500 Lease period = 3years Implicit rate = 5%

Q: 7. Options A. How does the price of a call option respond to the following changes, other things…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: a. What was the deareciation for the first year? Round your intermediate calculations to 4 decimal…

A: Double Declining balance of depreciation is an accelerated depreciation method that has higher…

Q: Consider the following repricing buckets: Repricing Bucket 1 day 1 day to 3 months 3 to 6 months 6…

A: Interest income is the money or income made from interest payments made on loans, bonds, savings…

Q: uestion 41 The following account balances were available for the Perry, Quincy, and Renquist…

A: Partnership is the relation between two or more person, it has the following characteristics They…

Q: An analysis of a company's estimated liability account revealed the following information: Sales of…

A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…

Q: Shamrock Company has five employees participating in its defined benefit pension plan. Expected…

A: Calculation of no. of Service Years: Year Jim Paul Nancy Dave Kathy Total 2020 1 1 1 1 1 5…

Q: Carla Company recently signed a lease for a new office building, for a lease period of 12 years.…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: periods at 12% is 1.76234. The future value of an ordinary annuity for five periods at 12% is…

A: Solution: Sometimes recurring payments or receipts, and the ongoing payments or receipts such as…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Help

You borrow $85,000; the annual loan payments are
$8,273.59 for 30 years. What interest rate are you
being charged?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Suppose you borrow $15,000 and then repay the loan by making 12 monthly payments of $1,297.92 each. What rate will you be quoted on the loan? NO EXCEL
You are loaned $300 at the end of years 1, 2, and 3. You pay this loan back with payments of X at the end of year 5, and $300 at the end of years 4, 6, and 7. Find X if the effective annual interest rate i = .07
Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
You borrow $305,000; the annual loan payments are $46,451.56 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. = %
You borrow $155,000; the annual loan payments are $12, 490.89 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. How do i do this on a finance calculator (BA II Plus)
Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60 months. What is the interest rate (APR) for the loan?
Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year. The interest on a loan is S
You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year payments of $3,223.73. What is the annual interest rate on this loan?
Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent, with interest prepaid (a discount interest loan). Also, assume that the bank requires you to maintain a compensating balance equal to 10 percent of the initial loan value. What effective annual interest rate are you being charged?
If you borrow $8,637 and are required to pay back the loan in five equal annual installments of $2,700, what is the interest rate associated with the loan? Use Appendix D or a financial calculator to solve this problem. (Round your answer to the nearest whole percent.) Interest rate %
You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate on a one-year loan. What is the effective interest rate if the loan is a discount loan?
you are analyzing a GPM. the terms are $60,000 loan amount, 9% note rate, 30 years, monthly payments, OFV, payments in year one based based upon 7%, and payment in year two based on 8%. how much will you owe on this loan at the end of the second year? Please assist, using HP 10bII+.