You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance charges Loan disbursement Total payback $6,000 Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR = Average Annual Finance Charge Average Loan Balance Outstanding First, compute the average annual finance charge by dividing the total finance charge of s half (1.5 years) = $ (Note: Round your answers to the nearest dollar.) by the life of the loan, which is a year and a
You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance charges Loan disbursement Total payback $6,000 Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR = Average Annual Finance Charge Average Loan Balance Outstanding First, compute the average annual finance charge by dividing the total finance charge of s half (1.5 years) = $ (Note: Round your answers to the nearest dollar.) by the life of the loan, which is a year and a
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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![CENGAGE MINDTAP
Ch 07: Assignment - Using Consumer Loans
You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to
the nearest dollar.)
Principal
Finance charges
Loan disbursement $
Total payback
APR =
Annual Percentage Rate (APR)
You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate.
APR
$6,000
First, compute the average annual finance charge by dividing the total finance charge of $
(Note: Round your answers to the nearest dollar.)
half (1.5 years):
=
$
=
$
Average Annual Finance Charge
Average Loan Balance Outstanding
=
Next, as a single-payment loan, the average loan balance outstanding is constant at the loan disbursement
$
Complete the calculation. (Note: Round your answers to the nearest dollar and your percentage point to the nearest two decimal places.)
Average Annual Finance Charge / Average Loan Balance Outstanding
by the life of the loan, which is a year and a
%
in this case, $
I
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Transcribed Image Text:CENGAGE MINDTAP
Ch 07: Assignment - Using Consumer Loans
You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to
the nearest dollar.)
Principal
Finance charges
Loan disbursement $
Total payback
APR =
Annual Percentage Rate (APR)
You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate.
APR
$6,000
First, compute the average annual finance charge by dividing the total finance charge of $
(Note: Round your answers to the nearest dollar.)
half (1.5 years):
=
$
=
$
Average Annual Finance Charge
Average Loan Balance Outstanding
=
Next, as a single-payment loan, the average loan balance outstanding is constant at the loan disbursement
$
Complete the calculation. (Note: Round your answers to the nearest dollar and your percentage point to the nearest two decimal places.)
Average Annual Finance Charge / Average Loan Balance Outstanding
by the life of the loan, which is a year and a
%
in this case, $
I
Q Search this course
?
Khloe ✓
A-Z
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