Question

Suppose you borrowed $13,230 at a rate of 15.0% and must repay it in 4 equal...

Suppose you borrowed $13,230 at a rate of 15.0% and must repay it in 4 equal installments at the end of each of the next 4 years.  How large would your payments be?

Group of answer choices

$4,083.69

$4,173.68

$3,905.87

$3,994.41

$3,818.07

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Annual loan payment

Loan amount (P) = $13,230

Annual interest rate (r) = 15.00% per year

Loan period (n) = 4 Years

The Annual Loan Payment = [P x {r (1+r) n}] / (1+r) n – 1

= [$13,230 x {0.15 x (1 + 0.15)4}] / [(1 + 0.15)4 – 1]

= [$13,230 x {0.15 x 1.74900625}] / [1.74900625 – 1]

= [$13,230 x 0.262350938] / 0.74900625

= $3,470.90 / 0.74900625

= $4,634.01

The annual payment is $4,634.01, but the answer is not given in the choices

Therefore, the Annual payment for the Loan is $4,634.01

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
Suppose you borrowed $14,000 at a rate of 10% and must repay it in five equal...
Suppose you borrowed $14,000 at a rate of 10% and must repay it in five equal installments at the end of each of the next five years. How much interest would you have to pay in the first year?
Suppose you borrowed $95,000 at a rate of 8.5% and must repay it in 5 equal...
Suppose you borrowed $95,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe in the first year?
Suppose you borrowed $75,000 at a rate of 8.5% and must repay it in 5 equal...
Suppose you borrowed $75,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment?
You want to borrow $22,425. You must repay the loan in 12 years in equal monthly...
You want to borrow $22,425. You must repay the loan in 12 years in equal monthly payments and a single $2,894 payment at the end of 12 years. Interest rate is 14% nominal per year.What will be the loan balance immediately after the 50th payment?
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly...
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly payments and a single $3,319 payment at the end of 6 years. Interest rate is 3% nominal per year. What will be the loan balance immediately after the 32th payment?
Suppose you have a credit card balance of $15,000 which you want to repay in equal...
Suppose you have a credit card balance of $15,000 which you want to repay in equal end-of-month payments for 5 years with a nominal annual interest rate of 18%, compounded monthly. What is the amount of the payments?
2), How large must each payment be if the loan is for $50,000, the interest rate...
2), How large must each payment be if the loan is for $50,000, the interest rate is 10%, and the loan is paid off in equal installments at the end of each of the next 10 years? The loan is for the same amount as the loan in part 1, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan in part 1?   Please calculate...
Problem 4-20 Amortization Schedule Consider a $10,000 loan to be repaid in equal installments at the...
Problem 4-20 Amortization Schedule Consider a $10,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7%. Set up an amortization schedule for the loan. Round your answers to the nearest cent. Enter "0" if required Year Payment Repayment Interest Repayment of Principal Balance 1 $   $   $   $   2 $   $   $   $   3 $   $   $   $   4 $   $   $   $   5 $   $   $  ...
2. Suppose you borrow $20,000 at an 18 percent simple interest but must repay your loan...
2. Suppose you borrow $20,000 at an 18 percent simple interest but must repay your loan in 12 equal monthly payments. a. Find the APR for this loan. b. What is the corresponding EAR? 3. Suppose you deposit $20,000 in a savings account. After 210 days, you withdraw your funds. If the bank paid you $340 in interest for the 210-day period, what is your APY? 4. Suppose that the house of your dreams costs $1,200,000. You manage to scrap...
Six years ago, you borrowed $200,000 for a ten-year period from BOB Bank at a stated...
Six years ago, you borrowed $200,000 for a ten-year period from BOB Bank at a stated interest rate of 10% p.a. with interest compounded quarterly. You have been making equal, quarterly payments on the loan during this time and now wish to repay the loan in full. The amount that you need to repay the bank today is closest to: Group of answer choices $142,494. $72,524. $104,012. $187,678.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT