Question

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____%

Answer #1

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 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 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 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 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 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 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 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 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% 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

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