Question

Chuong Ngo borrows $4000 from a bank that advertises a 6% simple interest rate and repays...

Chuong Ngo borrows $4000 from a bank that advertises a 6% simple interest rate and repays the loan in five equal monthly payments. Estimate the APR. Round to the nearest tenth of a percent. Use the Approximate Annual Percentage Rate Formula.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Chuong Ngo borrows $2700 from a bank that advertises a 6% simple interest rate and repays...
Chuong Ngo borrows $2700 from a bank that advertises a 6% simple interest rate and repays the loan in three equal monthly payments. Estimate the APR. Round to the nearest tenth of a percent. Use the Approximate Annual Percentage Rate Formula.
3) A friend borrows $4000 from you, agreeing to pay 4.55% simple interest. The loan plus...
3) A friend borrows $4000 from you, agreeing to pay 4.55% simple interest. The loan plus interest is to be paid back after 30 months. When the loan is repaid how much will be the interest portion of the repayment? What will the total repayment be, including interest and the principal? 4) You invested $10,000 In a CD that offers 4 1/4% rate compounded monthly. How much will you have in a CD after 6 years and 3 months? What...
If your uncle borrows $51,000 from the bank at 9 percent interest over the seven-year life...
If your uncle borrows $51,000 from the bank at 9 percent interest over the seven-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments $10,133.52 b. How much of his...
A druggist borrows $3500 from a bank to stock her drugstore. The interest rate is 6%...
A druggist borrows $3500 from a bank to stock her drugstore. The interest rate is 6% compounded semiannually with payments due every 6 months. She wants to repay the loan in 30 months. How much are the semiannual payments? (Round your final answer to two decimal places.
Your brother has just taken out a loan for $75,000. The stated (simple) interest rate on...
Your brother has just taken out a loan for $75,000. The stated (simple) interest rate on this loan is 10 percent, and the bank requires him to maintain a compensating balance equal to 15 percent of the initial face amount of the loan. He currently has $20,000 in his checking account, and he plans to maintain this balance. The loan is an add-on installment loan which he will repay in 12 equal monthly installments, beginning at the end of the...
A local organization borrows $1,000, and the loan is to be repaid in 6 equal payments...
A local organization borrows $1,000, and the loan is to be repaid in 6 equal payments at each of the next 6 years with monthly compounding. The lender is charging a 12 percent annual interest rate on the loan. Calculate the monthly payment and construct the amortization table for the first three months only.
1. If a bank advertises a savings account that pays a 6% nominal interest rate compounded...
1. If a bank advertises a savings account that pays a 6% nominal interest rate compounded continuously, what is the effective annual percentage rate? 2. Bank A offers a nominal annual interest rate of 5% compounded daily, while Bank B offers continuous compounding at a 4.6% nominal annual rate. If you deposit $3,000 with each bank, what will be the difference in the two bank account balances after two years? (Show ALL work and formulas used!)
Please show work A person borrows $11,000 from the bank at a yearly interest rate of...
Please show work A person borrows $11,000 from the bank at a yearly interest rate of 10% which is compounded monthly. The loan will be paid off in 2 years 1. What are the monthly payments? 2. If he decides to pay off the entire loan balance at the end of 17th month, what would be the total amount at that time?
An individual borrows $100,000 for 30 years at a simple annual rate of interest of 3...
An individual borrows $100,000 for 30 years at a simple annual rate of interest of 3 percent. Payments are in the form of a monthly regular or ordinary annuity. 1. What is the payment on principal at the end of the first month? 2. What is the dollar amount of each monthly regular or ordinary annuity payment? a. $422.66 b. $421.60 c. $420.55 d. $171.60
The Crane Bank requires borrowers to keep an 6 percent compensating balance. Gorman Jewels borrows $470,000...
The Crane Bank requires borrowers to keep an 6 percent compensating balance. Gorman Jewels borrows $470,000 at a 8 percent stated APR. What is the effective interest rate on the loan?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT