Find the effective yield on a discount loan with the given discount rate r and the time. (Round your answer to two decimal places.) r = 2%, 2 months

Q: which of the following statements are true? 1. there is an inverse relationship between interest…

A: In the above question we are evaluating true statements

Q: Calculate the simple interest rate. (Round your answer to one decimal place.) P = $2400, I = $60, t…

A: Simple interest = Amount*rate*time in years

Q: OYou are told the effective interest rate on an account is 9.1.%. if the interest is compounded…

A: The question is based on the concept of calculation of effective interest rate with continuous…

Q: Please calculate: What is the PER, APR and the EAR for a $15,000, 9 month (short term), where the…

A: Given; PER equals the number of Periods = 9 Months APR (Annual Percentage Rate) equals stated…

Q: Find the APR(true annual interest rate) to the nearest half percent for the following loan.Use the…

A: Annual Percentage Rate = Finance Charge / Amount Financed

Q: Suppose that the interest rate is 8%. What is the value of the discount factor, v? V= Enter a value…

A: Given in the question is interest rate of 8%. We are required to calculate the rate and value of…

Q: I would appreciate it If you could also explain how to plug this into a financial calculator

A: Calculation of effective annual rate (EAR): Answer: The correct answer is option D.

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's…

A: Simple interest refers to an interest determination methodology that does not take the effects of…

Q: e discount interest if F = PHP 58,000, discount interest rate 4.5% an

A: Discount is amount of money below the face value of note or any bond or any financial instrument on…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Simple interest is defined as an easy as well as quick method for the calculation of an interest on…

Q: Use the formula A=P(1+rt) to calculate the maturity value of the simple interest loan when…

A: formula: A=P(1+rt) where, p=principal r=rate  t=time in years

Q: An interest problem: Suppose $1000 is invested in an account paying interest at a continuous rate of…

A: The accumulated value after one year with given continuous rate is calculated below:

Q: Consider two loans with one-year maturities and id and a(n) 8.4% loan with a 4.5% (no-interest) comp…

A: Effective annual rate refers to the interest rate that is being charged by the lender to the…

Q: se MV=P(1+RT) to find the maturity value (in$) of the loan.  principal: $730,000 rate: 13.35%…

A: Maturity value means the value which is received on the maturity of the investment or end of its…

Q: Calculate the maturity value of the simple interest loan. (Round your answer to two decimal places.)…

A: As per the simple interest loan, The formula to be used is: A=P(1+rt)

Q: Calculate the maturity value of the simple interest loan. (Round your answer to two decimal places.)…

A: A loan is a form of financing money. The party who takes a loan is called the loan taker and the…

Q: If the effective interest rate is 15%, what nominal rate of interest is charged for a c compounded…

A: Compounding continuously is imaginary situation which actually does not exist in real life…

Q: The most expensive method of calculating the dollar cost of the interest on this installment loan…

A: Informantion provided: Borrowing amount = $1000 Interest rate = 10%   Definitions: Simple interest…

Q: Suppose that the interest rate is 4%. What is the value of the discount factor, v? υ Enter a value…

A: An interest rate is given. We have to find the value of the discount factor and the discount rate.…

Q: You plan to take out a 9 month loan of $12mm in 6 months. The following schedule reports interest…

A: Forward Interest rate for 9 month loan in 6 months = [[(1+r15)/(1+r6)] - 1]*(12/n) r15 =  5 *15/12…

Q: 4. Calculate the effective annual rate of a loan that charges 1.2% per month. Select one: A. 15.4%…

A: The objective of the question is to calculate the effective annual rate (EAR) of a loan that charges…

Q: Use MV = P(1 + RT)  to find the maturity value (in $) of the loan. (Round your answer to two decimal…

A: There are two types of interest rate simple interest and compounding interest. Simple interest no…

Q: Calculate the simple interest rate when P= $3600 , I = $160 and t = 4 months . Round to the nearest…

A: Given information: Principal amount is $3,600 Interest amount is $160 Time period is 4 months

Q: You have recently seen a credit card advertisement that states that the annual percentage rate is…

A: The effective annual rate can be calculated as per the formula of EAR

Q: Find the annual simple interest rate (in percent) on a 3 -month loan of \( \$ 5,000 \) if the…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: Find the maturity value on a loan of $2,500 at 11.5% interest, for 72 months. Use the formula MV = P…

A: 1. MV = P + I where , MV = maturity value of loan P = amount of loan I = Interest amount on loan…

Q: How many weeks would it take to increase the debt of a simple discount loan by 176% if the annual…

A: Current value (PV) = 100 (Assumed) Future value (FV) = 100*(1+1.76) = 100*2.76 = 276 Interest rate…

Q: If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months.…

A: Loan amount = P 12450 Par value = P 12840 Discount amount = Par value-Loan amount…

Q: rest rate is 1.2% per month, what is the APR?   2) Which is better if you’re taking a car

A: APR is annual percentage rate that is interest rate without compouding of interest and APR is much…

Q: Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below. Purchase…

A: The question is based on the concept of Financial Management.

Q: Calculate the simple interest due on a 3-month loan of P 1400.00 if the interest rate is 7.5%

A: Simple Interest : The simple interest is calculated by using the following formula & information…

Q: Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.)…

A: Future value = Present value ( 1 +Rate of interest ) Number of years

Q: Calculate the simple interest rate when P=$3600 , I=_160 and t=4 months. Round to the nearest…

A: Compounding is the interest charged on interest. When any investment is made for certain years, the…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: In a simple interest rate , the interest is not compounded.In Simple interest,Future value (A) =…

Q: Calculate the maturity value of the simple interest loan. (Round your answer to two decimal places.)…

A: Formula to be used: Maturity value= Principal amount + Interest amount Given data, P=14000 r=8.4%…

Q: Find the maturity value on a loan of $2,500 at 13.5% interest, for 72 months. Use the formula MV = P…

A: Maturity Value: It implies to the value of an investment / loan that is received or paid by the…

Q: Find the future value of this loan. $15,458 at 6.7% for 6 months

A: Future value (FV) is the value of an asset at a specific point in the future, assuming a certain…

Q: Suppose you have two loans: one SR 2500 that is due 3 months from now with 5% annual simple interest…

A: Given information: There are two loans : Loan 1 : SR 2500 Loan 2 : SR 1500 Time period :  Loan 1 : 3…

Q: What is the yield to maturity (YTM) on a simple loan for $1,500 that requires a repayment of $4,500…

A: Final Value (FV) = $4,500Present Value (PV) = $1,500Number of years (n) = 5

Q: Compute the simple interest INT for the specified length of time and the future value FV at the end…

A: Time value of money is one of the important concept being used in finance. It says that a dollar…

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.