Question

The local loan shark has loaned you $1,000. The interest rate you must pay is 18%,...

The local loan shark has loaned you $1,000. The interest rate you must pay is 18%, compounded monthly. The loan will be repaid by making 24-equal monthly payment. What is the amount of each monthly payment?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ellen borrowed $25,000 from a loan shark at the APR of 35%, compounded monthly. The entire...
Ellen borrowed $25,000 from a loan shark at the APR of 35%, compounded monthly. The entire amount, principal plus interest, is to be repaid at the end of five years. This loan shark is not a nice person and Ellen is a little nervous, so she starts a savings account in her local bank. The bank pays interest at the APR of 8%, compounded quarterly. Ellen will make 20 equal quarterly deposits into her account, then, right after the last...
Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,040...
Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,040 one week later (or lose a finger or two). 1. What is the effective annual rate on the loan? Enter your answer as a decimal and not a percentage. 2. What is the APR on the loan? Enter your answer as a decimal and not a percentage.
A local finance company quotes a 20% interest rate on a one year loan. If you...
A local finance company quotes a 20% interest rate on a one year loan. If you borrow $10,000, the interest for the year will be $2,000. Because you will pay a total of $12,000, the finance company requires that you pay $1,000 per month over the next 12 months with the first payment in one month. Is this a 20% loan? Find the effective annual interest rate on this loan.Find the annual interest rate compounded monthly.
A bank will loan you $8,500 for four years to buy a car. The loan must...
A bank will loan you $8,500 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The annual interest rate on the loan is 16% of the unpaid balance. What is the amount of the monthly payments?
You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24...
You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24 equal monthly installments ($A per month) at APR 12%, compounded monthly, starting from a month from obtaining the loan. If you miss a payment, your APR goes up to 24%, duration of the loan does not change but your monthly fixed payments go up. You miss your 12th payment. On the day of your 13th payment, the bank offers you a new deal. If...
you take a one year installment loan of $1000 at an interest rate of 12% per...
you take a one year installment loan of $1000 at an interest rate of 12% per year (1% per month) to be repaid in 12 equal monthly payments. a. what is the monthly payment b. what is the total amount of interest paid over tge 12 month term of the loan?
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...
Consider an amortizing loan. The amount borrowed initially is $21618, the interest rate is 5% APR,...
Consider an amortizing loan. The amount borrowed initially is $21618, the interest rate is 5% APR, and the loan is to be repaid in equal monthly payments over 17 years. As we know, while each monthly payment will be the same, the amounts of interest and principle paid will change from payment to payment. How much of the very first payment is interest?
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?
Two loans, both of an amount of 720,000 are repaid at a nominal interest rate of...
Two loans, both of an amount of 720,000 are repaid at a nominal interest rate of 19.2% convertible monthly. Loan 1 is to be repaid with 360 level monthly payments. Loan 2 is to be repaid by 360 monthly payments, each containing equal principal amounts and an interest amount based on the unpaid balance. Payments are made at the end of each month for both loans. The monthly payment for Loan 1 first exceeds the monthly payment for Loan 2...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT