You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Amount Financed Number of Payments Monthly Payment Payments Made Rebate Fraction Finance Charge Rebate Loan Payoff $4,600 36 $165.33 32   $   $   :)

A borrower has two alternatives for a loan: (1) issue a $570,000, 90-day, 7% note or (2) issue a $570,000, 90-day note that the creditor discounts at 7%. 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. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. (1) $570,000, 90-day, 7% interest-bearing note: $ (2) $570,000, 90-day note discounted at 7%: $ c. Alternative is more favorable to the borrower because the borrower

Enter your dollar answers rounded to the nearest two cents and precede numbers that are less than zero (0) with a minus sign (–).) Buy On Time or Pay Cash Cost of Borrowing       1. Terms of the loan       a. Amount of the loan $10,000.00     b. Length of the loan (in years) 5     c. Monthly payment $188.70   2. Total loan payments made       ($  per month  months)   $   3. Less: Principal amount of the loan   $   4. Total interest paid over life of loan   $   5. Tax considerations:       – Is this a home equity loan? no     – Do you itemize deductions on your federal tax return? yes   6. What federal tax bracket are you in? 35%   7. Taxes saved due to interest deductions       ($  x %)   $   8. Total after-tax interest cost on the loan   $   Cost of Paying Cash       9. Annual interest earned on savings       (6% x )   $   10. Annual after-tax interest earnings       ($  x %)   $   11. Total after-tax interest earnings…

Suppose you secure a home improvement loan in the amount of $5,000 from a local bank. The loan officer gives you the following loan terms:• Contract amount = $5,000• Contract period = 24 months• Annual percentage rate = 12%• Monthly installment = $235 .37Shown is the cash flow diagram for this loan. Construct the loan payment schedule by showing the remaining balance, interest payment, and principal payment at the end of each period over the life of the loan.