Loan A: $135,538 at a 5.0 percent discount rate Loan B: $125.538 at a 4.0 percent discount rate Loan C: $145,538 at a 4.5 percent discount rate
Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
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A: in this we have to calculate financial charges and we have to use given table.
Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
A: Down payment =Purchase (Cash) Price * Downpayment % = 3200*20% = $ 640
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A: Solution Rate (in %) for the loan = Interest / principal amount * 360/ days of loan
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A:
Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
A: Solution:- a)Calculation of amount financed as follows:- =Purchase price - Down payment =$2,600 - $0…
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Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
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Q: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance…
A: Purchase Price = $2,600 Down payment = $0 Monthly Payment = $189.69 Number of payments = 18
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Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
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Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…
A: 1) Amount Financed = Purchase Price - Down Payment Down Payment = $3,400*20% = $680 Amount…
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A: Interest = amount borrowed x rate of interest = $380000 x 6% = $22800
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- A borrower has two alternatives for a loan: (1) issue a $360,000, 75-day, 6% note or (2) issue a $360,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar. $ ________________________ Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $360,000, 75-day, 6% interest-bearing note: $___________________________ (2) $360,000, 75-day note discounted at 6%: $ _________________________A finance company uses the discount method of calculating interestThe loan principal is $4,500, the interest rate is 4.5%, and repayment is expected in one and half yearsYou will receive Type your answer here from the lender .(a) Determine the effective rate of interest for 4.275% compounded semiannually. Round your final answer to 3 decimal places. (b) Determine the effective rate of interest for 4.25% compounded continuously. Round your final answer to 3 decimal places. (c) If offered a loan at 4.275% compounded semiannually and a loan at 4.25% compounded continuously, which loan would you take? You must use your responses from parts (a) and (b) to explain your reasoning.
- Find the payment necessary to amortize a 5.5% loan of $7700 compounded semiannually, with 6 semiannual payments. Find (a) the payment necessary to amortize the loan and (b) the total payments and the total amount of interest paid based on the calculated semiannual payments. Then create an amortization table to find (C) the total payments and total amount of interest paid based upon the amortization table. a. The semiannual payment needed to amortize this loan is $ (Round to the nearest cent as needed.) b. The total amount of the payments is $ (Round to the nearest cent as needed.) The total amount of interest paid is $ (Round to the nearest cent as needed.) c. The total payment for this loan from the amortization table is $ %24 The total interest from the amortization table is $You apply for a loan of $79,000 with the following terms: a seven-year loan with semi-annual payments of $7,700 (at the end of period payments). Based on this information, what is the APR of the loan Bank Y offers you? 8.74% 8.42% 8.57% 9.02% 8.89%Find the finance charges on a 5 percent, 18-month, $1,000, single-payment loan when interest is computed using the simple interest method. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places. % Find the finance charges on the same loan when interest is computed using the discount method. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places. %
- A borrower has two alternatives for a loan: (1) issue a $390,000, 120-day, 8% note or (2) issue a $390,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Compute the amount of the interest expense for each option.fill in the blank 1 of 1$ for each alternative. b. Determine the proceeds received by the borrower in each situation. Line Item Description Amount (1) $390,000, 120-day, 8% interest-bearing note $fill in the blank 2 (2) $390,000, 120-day note discounted at 8% $fill in the blank 3Calculating the APR on simple interest and discount loans. Find the finance charges on a 6.5 percent, 18-month, single-payment loan when interest is computed using the simple interest method. Find the finance charges on the same loan when interest is computed using the discount method. Determine the APR in each case. Assume a loan ammount of $1000A loan is to be amortized by n level annual payments of X where n > 5. You are given (1) The amount of interest in the first payment is 604.00 (2) The amount of interest in the third payment is 593.75 (3) The amount of interest in the fifth payment is 582.45 Calculate X.
- Investigate the effect of the interest rate on simple interest amortized auto loans by finding the monthly payment and the total interest for a four-year loan of $11,000 at the following. (Round all answers to the nearest cent.)(a) 7.5%Payment $ Total interest $ (b) 7.75%Payment $ Total interest $ (c) 8.0%Payment $ Total interest $ (d) 9.0%Payment $ Total interest $Investigate the effect of the interest rate on home loans by finding the monthly payment and the total interest for a twenty-year simple interest amortized loan of $150,000 at the following rates. (Round your answers to the nearest cent.) (a) 6% payment $ total interest $ (b) 7% payment $ total interest $ (c) 8% payment $ total interest $ (d) 9% payment $ total interest $ (e) 10% payment $ total interest $ (f) 11% payment $ total interest $A borrower has two alternatives for a loan: (1) issue a $300,000, 120-day, 8% note or (2) issue a $300,000, 120-day note that the creditor discounts at 8%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option.$ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $300,000, 120-day, 8% interest-bearing note $ (2) $300,000, 120-day note discounted at 8% $ c. Alternative is more favorable to the borrower because the borrower .