Question

A local finance company quotes a 16.2 percent interest rate on one-year loans. So, if you...

A local finance company quotes a 16.2 percent interest rate on one-year loans. So, if you borrow $33,000, the interest for the year will be $5,346. Because you must repay a total of $38,346 in one year, the finance company requires you to pay $38,346/12, or $3,195.50 per month over the next 12 months.

What rate would legally have to b quoted?

APR_____%

What is the effective annual rate?

Effective Annual Rate____%

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
A local finance company quotes a 13 percent interest rate on one-year loans. So, if you...
A local finance company quotes a 13 percent interest rate on one-year loans. So, if you borrow $40,000, the interest for the year will be $5,200. Because you must repay a total of $45,200 in one year, the finance company requires you to pay $45,200/12, or $3,766.67, per month over the next 12 months.     a. What rate would legally have to be quoted?    b. What is the effective annual rate?
A local finance company quotes an interest rate of 18.3 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18.3 percent on one-year loans. So, if you borrow $40,000, the interest for the year will be $7,320. Because you must repay a total of $47,320 in one year, the finance company requires you to pay $47,320/12, or $3,943.33 per month over the next 12 months. What rate would legally have to be quoted? (APR) What is the effective annual rate? (EAR)
A local finance company quotes an interest rate of 16 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 16 percent on one-year loans. So, if you borrow $24,000, the interest for the year will be $3,840. Because you must repay a total of $27,840 in one year, the finance company requires you to pay $27,840 / 12, or $2,320.00, per month over the next 12 months. What interest rate would legally have to be quoted? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2...
A local finance company quotes an interest rate of 16 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 16 percent on one-year loans. So, if you borrow $24,000, the interest for the year will be $3,840. Because you must repay a total of $27,840 in one year, the finance company requires you to pay $27,840 / 12, or $2,320.00, per month over the next 12 months. What interest rate would legally have to be quoted? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2...
A local finance company quotes a 14 percent interest rate on one-year loans. So, if you...
A local finance company quotes a 14 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the year will be $2,800. Because you must repay a total of $22,800 in one year, the finance company requires you to pay $22,800/12, or $1,900.00, per month over the next 12 months.     a. What rate would legally have to be quoted?    b. What is the effective annual rate? Marisol is looking at a one-year loan of...
A local finance company quotes an interest rate of 18.1 percent on one-year loans. So, if...
A local finance company quotes an interest rate of 18.1 percent on one-year loans. So, if you borrow $39,000, the interest for the year will be $7,059. Because you must repay a total of $46,059 in one year, the finance company requires you to pay $46,059/12, or $3,838.25 per month over the next 12 months. What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
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.
You are looking at a one year loan of $ 5,000. The interest rate is quoted...
You are looking at a one year loan of $ 5,000. The interest rate is quoted as 9 percent plus 5 points. A point on a loan is simply 1 percent ( one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 5 points to the lender up front and repay the loan later with 9 percent interest. what rate would...
You are looking at a one-year loan of $11,000. The interest rate is quoted as 9.2...
You are looking at a one-year loan of $11,000. The interest rate is quoted as 9.2 percent plus four points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay four points to the lender up front and repay the loan later with 9.2 percent interest. What rate would you actually be paying...
you're looking at a one year loan for $10,000 the interest rate is quoted at 8%...
you're looking at a one year loan for $10,000 the interest rate is quoted at 8% plus 5 Points a point on the loan is simply 1% of the loan amount quotes similar to this one are very common with homework Zeus the interest rate quotation in this example requires the border to pay five points to the lender upfront and repay the loan later with 10% interest what is the actual rate you are paying on this loan
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT