Question

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 %

Answer #1

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**SOLVED WITH BA II PLUS
CALCULATOR**

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 being charged? Round your
answer to the nearest whole number.
%

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 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 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

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.

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...

Suppose that you borrow ?$17,000 for five years at 8?% toward
the purchase of a car. Find the monthly payments and the total
interest for the amortized loan.
The monthly payment is ?$ . ?
(Do not round until the final answer. Then round to the nearest
cent as? needed.)
The total interest for the loan is ?$ . ?
(Use the answer from part a to find this answer. Round to the
nearest cent as? needed.)

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.)

You borrow $100,000 today. You will repay the loan with 20 equal
annual payments starting in year 3 If the interest rate on the loan
is 5% APR, compounded annually, how big is each payment?

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