The rate quoted by Big Bank on a car loan is 8 percent. The annual rate of inflation is currently 1.5 percent. What is the approximate real interest rate paid by the consumer on this loan?

Q: al rate of interest on a bank account is 2.5% and the general rate of inflation is 4%. b) Using the…

A: Given information :

Q: The effective annual profit rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: Given the effective annual profit rate of 9.38%, we can calculate the monthly profit rate using the…

Q: For the average saver, the real rate of interest on his or her savings is %. (Round your response to…

A: As per company policy it is only possible to solve one question at a time. so solving the first one.…

Q: A bank has made a 3-year $10 million dollar loan that pays annual interest of 8%. The principal is…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…

A: The effective annual rate measures the rate of interest or return when the compounding is done on a…

Q: A lending institution charges interest at the rate of 3.5% per quarter, a. What is the nominal…

A: Interest rate per quarter = 3.5%   a. What is the nominal interest rate?       Nominal interest rate…

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: last year, i took out a loan with an interest rate of 4.24% when inflation was only 1.9%. now…

A: The real interest rate is the inflation adjusted interest rate which is reflecting the increase in…

Q: The nominal interest rate on a loan is 12.5% and inflation is 3%. What is the real interest rate?

A: Information Provided: Nominal Rate = 12.5% Inflation = 3%

Q: 10 percent down payment. Calculate how much Aryan needs to pay for the monthly installment.

A: To determine the monthly installment, we first need to determine the loan amount using the formula…

Q: What do we know about a loan, which is said to have annuity payments? a. This loan has annual…

A: The loan can be referred to as the debt amount that the borrower takes till certain maturity period…

Q: interest rate of i = 0.03. What is the minimum interest rate that the lender will charge to borrow…

A: To determine the minimum interest rate that the lender will charge to borrow money in this economy,…

Q: a. The financial institution's monthly loan interest rate, b. The annual real profit rate of the…

A: Since there are many subparts, as per our guidelines, we will answer the first three. Please repost…

Q: If you borrow £100 from a payday lender in the United Kingdom, you are expected to pay back £120 in…

A: Variables in the question:Loan amounr=£100Amount paid back=£120n=15 daysAssume 365 days in a year

Q: a bank offered its clients a credit card which had a rate of 18.55% compounded daily. if it added…

A: The nominal rate is the stated interest rate or advertised rate on a financial product or loan…

Q: Which of the following statements regarding the interest rates is correct? I As a result of…

A: The correct option is c) I and II only.

Q: Suppose you have borrowed $50 from a foreign lending institution. The loan requires a payment of 6…

A: Loan Amount  $                                   50.00 Time Period (Days) 6 Periodic Payment  $…

Q: A Canadian bank quotes you a rate of 3.28% on a mortgage. You plan on making bi- weekly payments (26…

A: Interest rate - 3.28% Period - 26 bi-weekly payments per year

Q: What is the maturity value on a 6-year loan for S7, 585 if the annual simple interest rate is 6.1%?…

A: Principal = $7,585Interest rate = 6.1%Time= 6 yearsMaturity value=?

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: Consider a five-year floating rate loan with principal of $10 million and quarterly payments based…

A: Given information: 5 year floating rate loan of $10 million

Q: Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but you must…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: 7. If the Nominal or Headline Annual Rate of a credit card that charges interest daily is 25%, what…

A: The annual equivalent rate refers to the interest rate of a loan or a financial product that derives…

Q: Suppose a borrower and a lender enter into an agreement for a car loan, which lasts for one year.…

A: The rate at which prices rise over time, resulting in a decrease in money's purchasing power is…

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: A bank promises to pay an interest rate of 13.9 percent compounded quarterly. What is the effective…

A: Using excel effective rate formula

Q: If you purchase $27,000 in U.S. Treasury Bills with a discount rate of 4.2% for a period of 26…

A: Data given: P=Principal amount=$27000 r=Discount rate=4.2%=0.042 t=Time=26 weeks=26/52=0.5 Formula:…

Q: Consider a $5,000, 6%, 180-day interest-bearing note and a non-interest- bearing note for the same…

A: The notes are used by borrowers for raising funds that are categorized as interest bearing and…

Q: abrina just took out a car loan with a stated rate of 9.12 %. at that time the inflation rate was…

A: Nominal rate = 9.12%Inflation rate=3.46%

Q: 5) According to a recent WalletHub report, the average credit card balance is $10,848 per American…

A: Credit card:A credit card is a financial tool that enables individuals to make purchases on credit,…

Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…

A: In a payday loan , for $200 , we need to pay $230 which means we need to calculate rate applied in 2…

Q: If an interest rate of 8.9% compounded semi-annually is charged on a car loan, what effective rate…

A: Interest is an additional amount which is paid by the borrower to the lender on the borrowed amount…

Q: Calculating Real Rates of Return IfTreasury bills are currently paying 4.7 percent and the inflation…

A: Real rate of return refers to the return after the adjustment of the inflation rate.

Q: 167 day simple interest loan for $10,456 has a maturity value of $10,961. What is the simple…

A: Simple interest rate is interest on the loan amount and there is no interest on interest amount.

Q: A bank has estimated its expected (predicted) loan loss rate on its consumer loans at 3.25%. If the…

A: The loan loss rate is the average amount of loans that the banks deem they will not be able to…

Q: Suppose that your bank has a minimum loan charge of $48 when you borrow at 6% ordinary interest for…

A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…

Q: Suppose your bank manager quoted you a 14% annual percentage interest rate on a loan that you need…

A: When the banker lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: One bank offers to loan you money at an interest rate of 12% compounded quarterly, and another bank…

A: Effective annual rate offered on each of the loan is calculated. Effective annual rate of 12%…