Question

If you borrow $9,983 and are required to pay back the loan in five equal annual...

If you borrow $9,983 and are required to pay back the loan in five equal annual instalments of $2,500, what is the interest rate associated with the loan? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole number.)

Interest rate             %

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR

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
You borrow $70,000 and arrange to pay off the loan in five equal annual installments. Payments...
You borrow $70,000 and arrange to pay off the loan in five equal annual installments. Payments will be made at the end of each year. The loan interest rate is 7.50 percent. What percentage of your second year's payment will go toward interest? A. 19.5 percent B. 17.2 percent C. 80.5 percent D. 28.7 percent E. 25.1 percent
You borrow $270,000; the annual loan payments are $41,121.05 for 30 years. What interest rate are...
You borrow $270,000; the annual loan payments are $41,121.05 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. %
If you borrow $1,800 and agree to repay the loan in four equal annual payments at...
If you borrow $1,800 and agree to repay the loan in four equal annual payments at an interest rate of 10%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a. If you borrow $1,700 and agree to repay the loan in six equal annual payments...
a. If you borrow $1,700 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Kingsley Toyota borrowed $170,000 from a local bank. The loan requires Kingsley to pay 14 equal...
Kingsley Toyota borrowed $170,000 from a local bank. The loan requires Kingsley to pay 14 equal annual installments beginning one year from today. Assume an interest rate of 6%. What is the amount of each annual installment payment? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Table or calculator function: Loan Amount: n...
Five years ago you incurred a 10-year term loan that required annual payments of $1,150 per...
Five years ago you incurred a 10-year term loan that required annual payments of $1,150 per year. You have made four payments in previous years and the fifth payment is due today. The note holder proposes that you buy back this note today for $4,395. Would it pay you to borrow the money at the bank at 13% interest rate and buy back this note (hint: calculate the market value of the loan and compare with the price for which...
You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual...
You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual end-of-year payments. Your annual effective interest rate is 5%. Complete the loan amortization table shown below for payment number 5 and payment number 6. Payment number    Payment Amount    Principal    Interest Loan Balance After Payment 5 6
Sherman Jacobs plans to borrow $10,000 and to repay it in 36 monthly installments. This loan...
Sherman Jacobs plans to borrow $10,000 and to repay it in 36 monthly installments. This loan is being made at an annual add-on interest rate of 14 percent. Calculate the finance charge on this loan, assuming that the only component of the finance charge is interest. Round the answer to the nearest cent. Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent. Using a financial calculator, determine the...
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.
Consider a 4-year amortizing loan. You borrow $2,900 initially and repay it in four equal annual...
Consider a 4-year amortizing loan. You borrow $2,900 initially and repay it in four equal annual year-end payments. a. If the interest rate is 9%, what is the annual payment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Prepare an amortization schedule. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)