Friendly's Quick Loans, Incorporated, offers you $7.50 today but you must repay $9.85 whenyou get your paycheck in one week (or else). What is the effective annual return Friendly'searns on this lending business? Note: Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16. If you were brave enough toask, what APR would Friendly's say you were paying? Note: Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

We need to use effective annual return (EAR) formula below.EAR =( 1 +Periodic interest rate)number…

Answered: Friendly's Quick Loans, Incorporated,…

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

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Similar questions

For the car loan described, give the following information. A car dealer will sell you the $30,750 car of your dreams for $6,000 down and payments of $665.06 per month for 60 months. (a) amount to be paid $ 39903.60 (b) amount of interest $ 9153.60 (c) interest rate (Round your answer to two decimal places.) 20.67 % (d) APR (rounded to the nearest tenth of a percent) %
A non-traditional lending source offers Megan a loan for $5,400. They require the loan to be repaid in 3 end-of-year payments of $2,100 each at the end of years 1, 2, and 3. What interest rate is this non-traditional lending source charging Megan? Click here to access the TVM Factor Table calculator. % Round entry to 1 decimal place. The tolerance is ±0.5.
You want to buy a new sports coupe for $75,100, and the finance office at the dealership has quoted you a loan with an APR of 7.5 percent for 72 months to buy the car. Requirement 1: What will your monthly payments be? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Monthly payment Requirement 2: What is the effective annual rate on this loan? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Effective annual rate 7.78
A radio commercial for a loan company states: "You only pay 29g a day for each $500 borrowed." If you borrow $1,586 for 166 days, what amount will you repay, and what annual interest rate is the company actually charging? (Assume a 360-day year) a. Amount you repay $(Round to two decimal places.)
Part c) Not using excel!
For the car loan described, give the following information. A car dealer will sell you the $30,750 car of your dreams for $6,000 down and payments of $665.06 per month for 60 months. (a) amount to be paid $ 512.5 (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) 1.72 X % (d) APR (rounded to the nearest tenth of a percent) 20.7 X %
Need hood explanation, don’t use excel please. Tsinoor takes out a loan of $6800. He will repay the loan over 5-years with semi-annual payments of $816 (first payment due in 6-months). Using linear interpolation, what rate of interest, j2 is being charged on the loan?
The Second National Bank of Fullerton advertises an APR of 15%, but it indicates in the “small print” that compounding occurs on a monthly basis for personal loans with no collateral required. This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Determine the APY you would pay using an equation. The APY paid would be % per year.
Ricky Ripov’s Pawn Shop charges an interest rate of 18.25 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. a. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
For the car loan described, give the following information. A car dealer will sell you the $30,350 car of your dreams for $6,000 down and payments of $669.06 per month for 60 months. (a) amount to be paid $ (b) amount of interest $ (c) interest rate (Round your answer to two decimal places.) % (d) APR (rounded to the nearest tenth of a percent)
PLEASE Use the correct function on EXCEL
(1)If compounding monthly, how would I find percent and intrest of a problem? (2) How do I compute if I paid $5 weekly for cofee and $175 monthly for food? What percentage of coffe did I pay over food? (3) suppose you start saving today for a $45,000 down payment that you plan to make on a house in 6 years. Assume you make no deposits in the account after initial deposit. For the account below, how much would you have to deposit now to reach $45000 in 6 years : an account with daily compounding and apr of 7%

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