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- Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
- Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?Consider a student loan of $25,000 at a fixed APR of 9% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.Consider a student loan of $12,500 at a fixed APR of 12%for 25 years. What is the monthly payment?(Do not round until the final answer. Then round to the nearest cent as needed.) The total payment over the term of the loan is?(Round to the nearest cent as needed.) Of the total payment over the term of the loan %? is paid toward the principal and %? is paid toward interest.
- Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. If you could show how to solve using a financial calculator that would be greatly apprectiated, thank you. YEAR BEGINNING BALANCE TOTAL PAYMENT INTEREST PAYMENT PRINCIPAL PAYMENT ENDING BALANCE 1 2 3 4 5Find the monthly house payments necessary to amortize the following loan. Then calculate the total payments and the total amount of interest paid. $201,000 at 7.02% for 15 years Question content area bottom Part 1 The monthly payments are (Round to the nearest cent.) Part 2 The total amount paid on the loan is (Round to the nearest cent.) Part 3 The total amount of interest paid is (Round to the nearest cent.)Computing the cost of a simple interest loan Montross Inc. needs to raise $300,000 for a nine-month term. Montross’s bank has offered to lend Montross the money at a 12.00% simple interest rate. Montross will receive the $300,000 upon approval of the loan and will pay back the principal and interest at maturity. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR) of this loan. Value Interest payment ______________ Amount of cash received ______________ Annual percentage rate (APR) ______________ Effective annual rate (EAR) ______________ Suppose the terms of the loan require that Montross maintain a compensating balance equal to 20% of the loan balance, and Montross will have to borrow the compensating balance from the bank. Calculate the interest payment, the amount of cash received, the annual percentage rate (APR), and the effective annual rate (EAR)…
- 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+.A student loan for $32,000 is paid back in monthly payments over ten years with an intrest rate of 6.5%. a) find the monthly payment b) find the total payments over 10 yearsTask: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find the monthly repayment. Answer: We use months as unit of time. Then, if x is the monthly repayment, £4000 = (blank) Thus x= (blank) Next part: Find the total capital repaid and interest paid in the first and last month, respectively. Answer: The interest paid in the first month is (blank). The repaid capital is (blank). In the last month the interest paid is (blank) and the capital repaid is (blank). Next part: Find the amount of the loan that has been repaid after 30 months. Answer: The loan outstanding after 30 months is (blank). Hence (blank) has been repaid at that point in time.