Question

Sherman Jacobs plans to borrow $10,000 and to repay it in 36 monthly installments. This loan...

  1. 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.
  1. 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.
  2. Use your finding in part (a) to calculate the monthly payment on the loan. Round the answer to the nearest cent.
  3. Using a financial calculator, determine the APR on this loan. Round the answer to 2 decimal places.   (1)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using the simple interest method, find the monthly payments on a $3,500 installment loan if the...
Using the simple interest method, find the monthly payments on a $3,500 installment loan if the funds are borrowed for 36 months at an annual interest rate of 9%. Use financial calculator to answer the question. Round the answer to the nearest cent. $______ per month Assume that interest is the only finance charge. Use financial calculator to answer the questions. How much interest would be paid on a $7,000 installment loan to be repaid in 48 monthly installments of...
EXHIBIT 5.9 A Table of Monthly Mortgage Payments (Monthly Payments Necessary to Repay a $10,000 Loan)...
EXHIBIT 5.9 A Table of Monthly Mortgage Payments (Monthly Payments Necessary to Repay a $10,000 Loan) The monthly loan payments on a mortgage vary not only by the amount of the loan, but also by the rate of interest and loan maturity. LOAN MATURITY Rate of Interest 10 Years 15 Years 20 Years 25 Years 30 Years 5.0% $106.07 $79.08 $66.00 $58.46 $53.68 5.5 108.53 81.71 68.79 61.41 56.79 6.0 111.02 84.39 71.64 64.43 59.96 6.5 113.55 87.11 74.56 67.52...
A man has borrowed $10,000 which he will repay in 60 equal monthly installments. After his...
A man has borrowed $10,000 which he will repay in 60 equal monthly installments. After his twenty-fifth payment he desires to pay the remainder of the loan at the time of the 26th payment in a single payment. At an interest rate of 2% per month what is the amount of the payment?
Calculate the amount financed, the finance charge, and the monthly payments for the following add-on interest...
Calculate the amount financed, the finance charge, and the monthly payments for the following add-on interest loan. Do not round intermediate calculations. Round your answers to the nearest cent. Purchase (Cash) Price Down Payment Amount Financed Add-on Interest Number of Payments Finance Charge Monthly Payment $51,500 30% $ 6.2% 60 $ $ Answer for amount financed, Finance charge and monthly payment. Thumbs Up for a correct answer!!!
You borrow $24,000 . The loan is to be repaid in 60 equal monthly installments at...
You borrow $24,000 . The loan is to be repaid in 60 equal monthly installments at an annual interest rate of 6.0 percent. What percentage of your first month's payment is interest?
Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on...
Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on interest loan. (Round your answers to the nearest cent.) Purchase (Cash) Price Down Payment Amount Financed Add-on Interest Number of Payments Finance Charge Monthly Payment $2,000 15% $ 14.5% 30 $ $
) Tom plans to borrow $10,000 from the bank using a four-year loan, payable monthly at...
) Tom plans to borrow $10,000 from the bank using a four-year loan, payable monthly at 4% APR. What will be the Tom’s monthly payments? (5 pts) After making the loan’s monthly installment payments for12 months, what will be the outstanding balance?
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an...
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an add-on interest installment loan Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single–payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on...
You want to borrow $22,425. You must repay the loan in 12 years in equal monthly...
You want to borrow $22,425. You must repay the loan in 12 years in equal monthly payments and a single $2,894 payment at the end of 12 years. Interest rate is 14% nominal per year.What will be the loan balance immediately after the 50th payment?
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly...
You want to borrow $44,536. You must repay the loan in 6 years in equal monthly payments and a single $3,319 payment at the end of 6 years. Interest rate is 3% nominal per year. What will be the loan balance immediately after the 32th payment?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT