What was the term of a $4850 loan at 4.5% if the interest due at the end was $145.50? Answer (need work shown): 8 months What annual rate of interest was earned if a $15,000 investment for 5 months earned $546.88 in interest? Answer (need work shown): 8.75%

What was the term of a $4850 loan at 4.5% if the interest due at the end was $145.50? Answer (need work shown): 8 months What annual rate of interest was earned if a $15,000 investment for 5 months earned $546.88 in interest? Answer (need work shown): 8.75%

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,...

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

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