A car dealer offers payments of S522.59 per month for 48 months on a S25, 000 car purchase (Assume a S4, 000 cash down payment) . What is the loan'sapproximate annual percentage rate of interest? 12 % 9% 6% 11%
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A car dealer offers payments of S522.59 per month for 48 months on a S25, 000 car purchase (Assume a S4, 000 cash down payment) . What is the loan's
approximate annual percentage rate of interest? 12 % 9% 6% 11%
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- Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
- What is the effective annual interest rate on the loan? Car purchased for $29,000 with a 5 year loan with an annual interest rate of 9% with monthly payments of $601.99. A. .0075% B. .75% C. 9.381% D. 11.5% E. None of the aboveA car loan is taken for $20,000 to be paid back in 6 years, with monthly payments of $304. What nominal annual interest rate is being charged in this loan? 13.13% 3.07% 3.00% 1.09%A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one month.If a person accepts the offer, what is the nominal interest rate per year? O a. 60% O b. 6% O c. 50% O d. 5%
- A lender engages in a 15-day $1,000,000 reverse repo at a rate of 2.50%. The haircut is 2%. The current market value of the loan is $980,000. What rate of return did the lender earn on annualized basis? Use 360-day for annualization. A $1,000.42 B $810.63 C $466.86 D $880.37A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee of $1,000 and will also discount the loan by some amount. Suppose the lender discounts the loan by the amount calculated in the last question. What is the annual percentage rate (APR) on this loan? a. 5.45% b. 6.00% c. 6.11% d.6.20% e. 6.65% Assume the borrower repays the loan after 8 years. What is the effective borrowing cost (EBC) on this loan? a. 6.10 b. 6.17 c. 6.33 d. 6.50 e. 6.841. Consider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using the average balance method). b. How much would you pay in total for interest?
- A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using ordinary simple interest.Treating the fee as interest paid, what is the equivalent annual interest rate?How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the discount rate is 9%. How much is the proceeds after deducting the interest?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%
