An engineer applied for a car loan at a financing institution which charges a rate of 22%. Interest is to be deducted from the loan at the time the money is released. At the end of 1 year the engineer will have to pay the same amount as stated in his application for loan. What is the actual interest did the financing firm charge him

An engineer applied for a car loan at a financing institution which charges a rate of 22%. Interest is to be deducted from the loan at the time the money is released. At the end of 1 year the engineer will have to pay the same amount as stated in his application for loan. What is the actual interest did the financing firm charge him

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If you wish to have $800 in your savings account at the end of 4 years with 5% APR interest. How much should you put into the savings account now?
What equal annual payment series is required to repay the following present amounts? (a) $14,000 in five years at 7.5% interest compounded annually. (b) $7,500 in seven years at 6.25% interest compounded annually. (c) $5,000 in six years at 5% interest compounded annually. (d) $20,000 in 18 years at 4.75% interest compounded annually.
Engineering Economy a certain amount of money was invested for two year at a rate of 7 1/2 %. At the end of that year, it had earned $875. How much money was invested?
A company has issued 10-year bonds, with face value of 1,000,000 in 1,000 units. Interest at 16% is aid quarterly. If an investor desires to earn 20% nominal interest on 100,000 worth of these bonds, what would the selling rice have to be?
A 30-year mortgage for $175,000 is issued at a 6% nominal interest rate. (a) What is the monthly payment? (b) How long does it take to pay off the mortgage, if $1250 per month is paid? (c) How long does it take to pay off the mortgage, if double payments are made?
Someone decides to purchase a vehicle. They will finance the entire purchase and can afford to pay $400 per month. The loan is for 36 months and there is a 7% annual interest rate. What is the maximum purchase price they can afford?
A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of USD 15,000 per month for all of his wants. Given his budget, the gamer can afford to buy a gaming laptop for a down payment of USD 8,000 and a monthly annuity with a value not exceeding 40% of his "WANTS Budget". If the gaming laptop seller agrees to the down payment value, and the balance payable in 5 years at 20% per year payable on a monthly basis, what is the maximum price of the gaming laptop he can afford to purchase?
How long will it take for an investment to double at a 3% per year? (a) simple interest rate (b) compound interest rate
If you are able to save $4400 in year 1, and amounts increase by 2.6% each year through year 19 at 10.5% per year interest? Provide answers to the following questions. Effective interest rate (%) per year 10.5 Total number of saving amounts 19 Last Saving amount ($) 0 Present worth of all saving amounts ($) Accumulated saving amount just after the last saving is made ($) 0 Числовой Поставьте ответ в каждом поле ввода.
How much can Sheila borrow on a credit card charging an APR of 17% over a period of 5 years if she wants to keep her payments to not exceed $300 every month end, if the credit card company compounds money on a daily basis?
A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective rate of money?
Mrs. Reyes accumulated 4,000 shares of company stock, in the manufacturing company where have worked for 20 years. One year ago, each of stock was worth 50 pesos. The company has offered to buy back Mrs. Reyes shares for 215,500 pesos. At what interest rate would the company's offer be equivalent to the worth of the stock last year?