the intereswt rate a company pays on 1 - year, 5-year loan depends on?

Q: Define each of the following loan terms, and explain how they are related to one another: the prime…

A: A loan is in the form of money given to another party who needs funds in exchange for repayment of…

Q: 10) Compute the simple interest and final amount of each loan Principal Rate Time A P 400 7% 1 year…

A: Simple interest is that amount of interest which is being charged on the principal amount for the…

Q: Debt due within one year is considered: A . current.

A: Debt due within one year is considered

Q: Would you advise a 15-year loan to a buyer who could afford the additional payment over a 30-year…

A: Loans are used for buying home or car by the common man but there are interest to be paid on that…

Q: What is the difference in interest paid between a 30-year mortgage loan and a 15-year mortgage loan…

A: Interest: It represents the monetary charge on the amount borrowed by the borrower from the lender.…

Q: Over the life of a fixed payment amortized loan, such as a conventional mortgage, the proportion of…

A: Conventional loans are the types of home loan which are not secured by the government securities. On…

Q: Compare the annual payments calculated and potential risks or benefits involved for a foreign…

A: Data given : Interest rate at 5%, 12% and 15%. Assumption : Exchange rate remains unchanged during…

Q: Consider a loan of $7100 at 4.8% compounded semiannually, with 18 semiannual payments. Find the…

A: Amortization schedule refers to the statement showing the details of the amount of borrowed amount,…

Q: (a) What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is the…

A: Rebate: It is the amount of money that is returned or credited to the customer in regard to a…

Q: SIMPLE vs COMPOUND INTEREST Isimp. = P * r *t where P - principal amount (the initial amount you…

A: 2. Calculation showing the total amount of interest paid under simple interest method: Interest=…

Q: What is the amount of compensating balance would be required for a nominal interest rate of 12% to…

A: Nominal interest rate (r) = 12% Effective interest rate (i) = 14.40% Let the compensating balance as…

Q: The lender charges the borrower 1.8% per quarter. Find the equivalent nominal rate of interest.…

A: The nominal rate of the loan is stated in annualized terms without considering the effect of…

Q: Explain why many commercial loans require interest to compound more frequently than once a year,…

A: Commercial loans require interest rates to compound more frequently once e year because it issues…

Q: hat relationship exists between the length of the loan and the monthly payment? How does the…

A: Loans are paid by the monthly payments that are fixed payments and the monthly payments carry the…

Q: A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-…

A: Loans are paid by the amount that carry the interest on the loan and paid by the single equivalent…

Q: Calculate the missing information for the installment loan that is off early. Sum-of-the-…

A:

Q: With regard to mortgages, how is the monthly payment including principal and interest categorized as…

A: An annuity refers to the annual payment of a debt which includes a portion of principal as well as…

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: .The portion of the selling price paid by the customer at the time of purchase is called ________.…

A: Customers have to pay some amount to purchase on loan.

Q: What is Debt Service?

A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…

Q: All of these have a balloon payment due at the end of the loan term EXCEPT a.​a fully amortized…

A: A balloon loan is a type of loan that which do not fully amortize during the tenure of the loan. As…

Q: A design studio purchase a camera. If they settled the loan in 2 years by making quarterly payments,…

A: Loans are to paid by the periodic payments that carry the payment for loans and payment for interest…

Q: What is the total cost of interest with the new interest rate?

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

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: A borrower is faced with choosing between two loans. Loan A is available for $82,000 at 6 percent…

A: Here,ParticularsLoan ALoan BLoan amount (PV) $ 82,000.00 $ 82,000.00Interest rate6.00%7.00%Number of…

Q: Which one of the following statements about a fixed-rate mortgage (FRM) loan is correct? a. The…

A: Fixed-rate mortgage Loan A fixed-rate mortgage loan is a loan taken for a home or real estate in…

Q: Obligations payable within one year or one operating cycle, whichever is longer, are; Select one:…

A: Current liabilities: Liabilities which have to be paid  within one year or one operating cycle,…

Q: The following loan is paid in full before the date of maturity. Find the amount of uneaned interest.…

A: There are various method which can be used to compute the interest charged on a loan. Rule 78 is one…

Q: As a loan is paid off, the   monthly payment increases debt and interest portions do not change each…

A: Interest expenses on loan is calculated on the closing balance of the loan  account on a particular…

Q: Number of Payments Payments Remaining Payments Made 18 3 Sum-of-the- Digits Payments Remaining…

A: When a buyer buys goods on credit, he has to pay the remaining installments after paying the down…

Q: Determine the maturity date of the loan (not in a leap-year). Loan Date Time of Loan (days)…

A: Loan date = Feb 8 Loan duration = 110 days As it is not a leap year, Feb has 28 days

Q: BSP Corporation borrows from Patriot Bank based on the following pricing details: (1) interest rate…

A: Reserve requirement refers to an amount that is kept aside by the bank for the purpose of meeting…

Q: Which of the following statement is true of amortization? The computation of loan amortization is…

A: We take loans to buy things that we cannot afford on our own.  The loan is then repaid through fixed…

Q: ****** An important application of -Select- interest involves amortized loans. Some common types of…

A: To Find: Annual payment First Inerest payment  Principal repayment

Q: What is the total amount you will pay if you do not pay the loan within the term and meet all the…

A: Step 1:Given: Loan amount = $5400Period of loan = 72 monthsFinal loan amount = $6965.35Interest is…

Q: Find the payment necessary to amortize the following loans using the amortization table, and round…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: Assume that XYZ Company has a loan agreement that states that it must maintain a fixed-charge…

A: 1) The fixed-charge coverage ratio is calculated by taking the sum of net income, noncash charges,…

Q: The repayment of a loan in a series of equal periodic payments is called. O a. Mortgage O b. Down…

A:

Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT…

A: Loan amount = P80,000 Annual interest rate = 0.10 or 10% Annual period = 1.5 (i.e. 18 / 12) Amount…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.