The annual interest rate is %
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: Effective rate of interest is the equivalent interest rate which is determined by considering the…
Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for…
A: Given:
Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…
A: Loan is the value which is borrowed from the other sources like banks and this amount repaid later…
Q: A customer takes out a loan of $150,000 on January 1, with a maturity date of 36 months, and an…
A: Interest on loan:-It is the rate levy on the initial amount of loan and this is the additional…
Q: A bank charges 1 ½% per month on the unpaid balance for purchases made with its credit card. This is…
A: The equivalent effective annual rate can be calculated through the compounding interest formula. The…
Q: pays a 9.75% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%)…
A: The effective annual rate can be computed as follows :- EAR = (1+i / x)^x - 1 = (1 + 0.0975/12)^12…
Q: First National Bank offers two-year CDs at 9.16% compounded daily, and Citywide Savings offers…
A: First National Bank r=9.16% compounded daily n= 365 Annual yield formula is…
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: In this case, first, we have to calculate the biweekly interest rate and then we have to calculate…
Q: You want to lend $12,000 as a bank deposit in a private bank with an interest rate 3 % per month.…
A: The worth of money changes with time. Therefore, the time value of money explains the worth of money…
Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…
A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…
Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…
A: Annual Percentage Rate It the total interest paid each year which is before consideration for the…
Q: On March 1, Minnerly Motors obtains a business loan from a local bank. Theloan is a $25,000…
A: The formula to compute interest charge as follows:
Q: Credit card issuers must by law print the annual interest rate they charged borrowers. If the annual…
A: Annual interest rate = 15% Compounding = Monthly Number of compounding per year = 12
Q: a bank charges one and one-half percent per month on the unpaid balance for purchases made its…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…
A: Information given : Annual Percentage Rate (APR) = 15.75% = 0.1575 Compounding frequency = Monthly…
Q: Mr samuel approached the arnett national bank for a 15,000 loan to purchase vehicle the bank charges…
A:
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: (1). We, have to find the two week interest rate and that there are 26 two week periods in one year.…
Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…
A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…
Q: Summit Record Company is negotiating with two banks for a $127,000 loan. Fidelity Bank requires a…
A: Here, Details of Fidelity Bank: Loan Amount is $127,000 Compensating Balance is 22% Number of…
Q: Inc. offered a one-year loan to a customer client. The instrument is a discounted note with a…
A: Discount rate of note (R) = 15%
Q: The bank statement opposite shows transactions over a one-month period for a savings account that…
A: Interest on savings account is calculated on daily balance in the account.
Q: A particular credit card calculates interest using the unpaid balance method. The monthly interest…
A: Interest is calculated on unpaid balance method. Interest rate = 1.57% on the unpaid balance on the…
Q: A local financing bank granted a car loan to a man who agreed to pay a rate of interest of 25%.…
A: This question is based on deep discount loans where interest is charged upfront at the time sanction…
Q: To ensure that, along with spontaneous financing from accounts payable and accruals, adequate…
A: Here, The borrowed Amount is $600,000 Borrowing Limits is $1,000,000 Interest Rate of Line of Credit…
Q: A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank…
A: formula for annual yield: AY=1+rnn-1where,r =rate n =frequency of compounding
Q: A credit card account’s due date is June 9, and the outstanding balance on that day is $460. On that…
A: The question is based on the concept for calculation of charges in credit card . Average daily…
Q: Allied Bank pays 4% interest compounded annually on deposits, while bonkers Bank pays 3.5%…
A: The Effective Annual Rate: The effective annual rate is affected by the number of compounding…
Q: A credit card company charges a nominal 12% interest on overdue accounts, compounded daily. What is…
A: The formula for the calculation of effective rate is as follows: Effective interest rate=1+nominal…
Q: An automobile financier claims to be lending money at simple interest, but he includes the interest…
A: Following is the answer to the question
Q: A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: Springer Products wishes to borrow $90,000 from a local bank using its accounts receivable to…
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Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…
A: The loan can be taken from the organized banks and through the local lenders. The lender of the…
Q: A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all…
A: Effective rate of interest is the real return on savings or any interest paying investment when…
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: Answer- Step 1 - Calculation of r - r = (FV/PV)^(1/n) - 1 Given, FV = 230 PV = 200 n = 1 Putting…
Q: Bank A pays 2% interest compoundedannually on deposits, while Bank B pays 1.75% compounded daily.a.…
A: Formula for EFF is: EFF = (1+r/n)^n - 1 where r is the nominal rate of interest & n is the…
Q: Jack Abrams borrowed $8,000 for nine months at an interest rate of 7% (simple interest). The bank…
A: Actual interest rate is computed below:
Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400, and the cash…
A: The calculation of actual interest rate on the note is shown hereunder : Interest cost RO 400 Cash…
Q: .A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would…
A: The discount on loan is given and that discount on loan is the interest being charged on the loan…
Q: Marydale Products permits its customers to defer payment by giving personal notes instead of cash.…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of…
A: In this case, we use the average daily balance method to calculate the interest charged. It is one…
Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…
A: Rebate fraction = No of payments remaining/Total no of payments Finance charge= Rebate fraction * […
Q: Bulldogs Inc. offered a one-year loan to a customer client. The instrument is a discounted note with…
A: Discount rate = 15%
Q: Hagar Company's bank requires a compensating balance of 10% on a $100,000 loan. If the stated…
A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…
A: Effective Annual Rate: The effective annual rate (EAR) is the rate of interest or the real rate of…
Q: A loan of $2500 is taken out on May 12. It is to be paid back within a 1-year period with partial…
A: Declining balance method aims to calculate the amount of interest on the unpaid balance of loan on…
Q: A man borrows money from a bank which uses a simple discount rate of 14%. He signs a promissory note…
A: A promissory note refers to a financial instrument which contains a promise that one party will pay…
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- Credit card issuers must by law print the annual interest rate they charged borrowers. If the annual interest rate is stated to be 15%, with interest paid monthly, what is the actual annual cost that the bank charges its customers on the card?How can we calculate the total annual interest payment for a credit card debt of $ 1,000?Mama inc. offered a one-year loan to a customer client. The instrument is a discounted note with a nominal rate of 15%. Determine the effective interest rate to the borrower.
- First National bank charges 12.4 percent compounded monthly on its business loans. First United Bank charges 12.7 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.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 bank charges one and one-half percent per month on the unpaid balance for purchases made its credit card. this is equivalent to what effective annual interest rate?A borrower has two alternatives for a loan: (1) issue a $420,000, 30-day, 6% note or (2) issue a $420,000, 30-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. $ fill in the blank 2 for each alternative. Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $420,000, 30-day, 6% interest-bearing note: $ fill in the blank 3 (2) $420,000, 30-day note discounted at 6%: $ fill in the blank 4 Alternative 1 is more favorable to the borrower because the borrower receives more cash .Inc. offered a one-year loan to a customer client. The instrument is a discounted note with a nominal rate of 15%. Determine the effective interest rate to the borrower.
- first national bank charges 13.8 percent compounded monthly on its business loans. First United Bank charges 14.1 percent compounded semiannually. As a potential borrower, which bank would you to for a new loan?Fifty Incorporated normally borrows from a bank to finance their daily operations. Information about the company’s borrowings are as follows: Date of the Loan Term of the Loan Interest Rate Amount June 1, 2019 25 months 12% 1 million January 31, 2020 20 months 15% 1.5 million May 1, 2021 30 months 18% 3 million Interest is paid upon maturity of the Loan. Under accrual basis, interest expense recognized in 2021 would beYou borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $18, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Effective annual interest rate 1.49 %