A loan is offered with monthly payments and a 15.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %

A loan is offered with monthly payments and a 15.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Effective annual rate %

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

See similar textbooks

Related questions

Q: .I need help with finance homework questions asap. (rounded to 2 decimal places) What is the…

A: The Effective annual rate is referred to the interest rate that is actually earned on an investment…

Q: What are the interest cost and the total amount due on a six-month loan of $2,100 at 13.5 percent…

A: Simple annual interest cost is the net amount of interest that is being charged on the principal…

Q: The interest rate on a $14,200 loan is 8.6% compounded semiannually. Semiannual payments will pay…

A: Given: Loan = $14,200 Interest rate =8.6% Years = 9

Q: What annual payment is required to pay off a four-year, $29,000 loan if the interest rate being…

A: Loan amount (L) = $29000 Let the annual payment = A Monthly payment = M EAR = r = 7% Let monthly…

Q: A loan is offered with monthly payments and a 9.25 percent APR. What’s the loan’s effective annual…

A: APR = 0.0925 or 9.25% Number of compounding (n) = 12 Effective annual rate (EAR) = ? Effective…

Q: Question 12 Common information: A loan is amortized by level payments made at the end of each…

A: The amortization schedule refers to the breakdown of the periodic payments into interest and…

Q: ques 7

A: PV=PMTr1−(1+r)−nPV (present value of the loan)PMT (annual payment)n (number of payments)r (interest…

Q: A loan is offered with monthly payments and a 14.25 percent APR. What’s the loan’s effective annual…

A: Annual rate (r) = 0.1425 or 14.25% Number of compounding (n) = 12 EAR = ?

Q: A loan of $14,800 is to be amortized with quarterly payments over 7 years. If the interest on the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: A loan is offered with monthly payments and a 8.50 percent APR. What's the loan's effective annual…

A: Effective annual rate is the rate that is actually earned. It can be calculated Effective annual…

Q: What is the monthly interest expense for the following open-end credit loan? Loan balance of…

A: The open ended credit loan you have to pay interest on balance amount used and calculation are done…

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: Loan fee=$27Loan amount=$185Period=2 weeks

Q: Melvin availed a loan from a bank that gave him an option to pay Php 14,600 monthly for 2 years. Th-…

A: Present value of all monthly payments considering the interest rate and period of payment would give…

Q: Current Attempt in Progress Abe is offered a loan of $24,000 that requires 60 monthly payments of…

A: It looks like you're trying to find the effective annual interest rate for a loan of $24,000 with…

Q: (sec 4.2) Use Rule of Thumb 4.2 to estimate the monthly payment on a loan of S6000 borrowed over a…

A: Rule of Thumb 4.2 is for short term loans and calculates the least amount which needs to be paid to…

Q: QUESTION 13 How much do you still owe on your auto loan if you have 41 remaining monthly payments of…

A: The loan amount is the total of principal with interest added over the period of time. When the…

Q: Straight bank loan. Right Bank offers EAR loans of 9.07% and requires a monthly payment on all…

A: Using excel PMT function to calculate monthly payment

Q: A loan is offered with monthly payments and a 11.25 percent APR. What's the loan's effective annual…

A: Effective Annual Rate (EAR) is the actual rate of interest paid, by taking into account the…

Q: Straight bank loan. Right Bank offers EAR loans of 9.44% and requires a monthly payment on all…

A: The amount of loan repayment which is required to be paid on a monthly basis is known as monthly…

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: Jaspreet received a 15 year loan of $300,000 to purchase a house. The interest rate on the loan was…

A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Q: What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is…

A: Calculation of Effective Annual Rate By using Rate function of Excel=RATE(nper,pmt,pv)wherenper is…

Q: Find the effective rate for a payday loan which charges $37.78 for a two week loan of $280. The…

A: The Effective Annual Rate (EAR) is the interest rate that is adjusted for compounding over a given…

Q: A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 17 days.…

A: Given, Payday loan company charges fee = $25 Payday loan amount = $550 Duration = 17 days

Q: Prepare an amortization schedule for a three-year loan of $96,000. The interest rate is 9 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: A student has a total of $3,000.00 in student loans that will be paid with a 48-month installment…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: A loan is offered with monthly payments and a 8.00 percent APR. What's the loan's effective annual…

A: We need to use effective annual rate formula below.Effective annual rate (EAR) = Wherer= annual…

Q: You wish to buy a $21,500 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are…

A: Given Price of car is $21500 Term is 6 years rate is 7.2%

Q: Big Dom's Pawn Shop charges an interest rate of 25.5 percent per month on loans to its customers.…

A: Solution (A) APR is the interest rate per period times the number of periods in a year APR = 12…

Q: W WA Finance 2-Borrowing Money and Pa Assume that you take out a $4000 loan for 30 months at 8.5%…

A: Given, The loan amount is $4000 Rate is 8.5% Term is 30 months

Q: Iculate the term, expressed in years and months, for each of the following ordinary general…

A: The future value of annuity includes the amount being deposited and amount of interest being…

Q: A loan is offered with monthly payments and a 9.00 percent APR. What's the loan's effective annual…

A: compound = n = monthly = 12 Annual Percentage Rate = APR = 9%

Q: Compute the size of the final payment for the following loan. Principal Periodic Payment Payment…

A: Final payment refers to the amount of principal along with interest accrued and unpaid on the loan…

Q: You borrow $800 from a payday lending company and pay $40 interest for one month. What is the…

A: Future Value is that amount which includes the principal & interest on that amount. It is paid…

Q: Given the annual interest rate and a line of an amortization schedule for that loan, complete the…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: What monthly payment is required to pay off a $55,000 loan in six years if the interest rate on the…

A: Monthly payment refers to the amount that is being paid on monthly basis for the repayment of the…

Q: What is the EAR?

A: Interest = loan amount * interest rate = $10,000*0.13 = $1,300Next, we calculate the points paid on…

Q: What is the effective annual rate on a loan that charges 8.2 percent, compounded quarterly? Multiple…

A: Effective annual rate is computed by following formula:-Effective annual rate = - 1 whereA =…

Q: The exact interest on a loan of P3728 at 7.4% annual simple interest for 95 days is Round your…

A: The rate at which you borrow or lend money is called simple interest. If a borrower takes money from…

Q: Monthly payment of loan b, rounded to the nearest cent

A: Monthly payment for the loan is the amount paid for loan over a time.

Q: Prescott Bank offers you a five-year loan for $54,000 at an annual interest rate of 7.5 percent.…

A: The annual loan payment is the regular installment of the total loan, which repays at a regular…

Q: with

A: Laon fees = 1.75%, in amount = 1.75/100*$12,000,000=210000 So the total loan value =12000000…

Q: Amortizing Loan Consider a 4-year amortizing loan. You borrow $351,000 initially, and repay it in…

A: Answer (a):The formula for the annual payment of an amortizing loan is given by:where:PMT is the…

Q: You're prepared to make monthly payments of $260, beginning at the end of this month, into an…

A: The number of payments made can be calculated with the help of NPER function of Excel

Question

Question 7

A loan is offered with monthly payments and a 15.25 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Effective annual rate %

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 - Introduction

VIEW

Step 2 - Calculation of effective annual rate

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Answer in typing
QUESTION 3 If you have a 12-year annuity paying $349 monthly beginning in 2 years when interest is 3.53% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an annuity due with the first annuity payment at the 2-year mark. PLEASE SHOW COMPLETE SOLUTION (DO NOT USE EXCEL)
Compute the size of the final payment for the following loan. Periodic Principal $ Payment $ 9900 (540 Payment Payment Interest Rate Compounding Period Period Made at: 1 month beginning monthly % 9 The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Pls show full steps correct
The stated interest rate on your account is 7.2% interest paid quarterly your effective rate of interest API will be? Keep 4 decimal places
Ma3. A loan is amortized by level payments made at the end of each quarter, for 25 years: The monthly rate is 1%. The principal in the 29th payment is 8370. Find OLB69 OA. 1,115,185.53 OB. 1,101,108.22 OC. The correct answer is not shown here. OD. 1,430,370.34 OF. 1,301,108.22
Q 2 To borrow $750, you are offered an add on interest loan at 9.1 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) EQUAL PAYMENTS? Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR?
Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan 2: $200,000 at 4.25% for 30 years, monthly payments, and no origination cost. What is the discount point charged on Loan 1 assuming there is no cost associated with the origination? How many points must be charged on the 2nd loan to equalize the APR on the two loans? Please show how to solve using an excel spreadsheet
Pls help correct
Loan from a bank at a discount basis 8% which also requires a compensating balance equivalent to 7% of the loan. Compute the annual interest rate. (Use 4 decimal places in your computation)
A loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Only by excel, i know how to do written so by excel only please A part) what is the APR on a 5 year (60 month) 25,000 loan with a monthly payment of 500? B part)What is the effective annual rate (EAR) on the loan in a part?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS