Question

- 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 APR on this loan. Round the answer to 2 decimal places. (1)

Answer #1

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...

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!!!

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 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?

) 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?

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 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?

Brian borrows $15,000 from Mary and agrees to repay with 12
installments payable half-yearly. The effective interest rate is
6.09% per annum. When the 6th payment is due, Brian repays the
outstanding loan balance by a lump sum.
a.) Calculate the lump sum payment of Brian
b.) Calculate the loss of interest income of Mary
Please show all work by hand, without using a finance calculator
or Excel. Thank you.

Your friend wants to borrow money from you. He proposes to repay
his debt in 4 monthly installments of $100, starting this month
(i.e., the first payment will occur at the end of month 1). If the
monthly interest rate on your savings account is 1.5%, how much
would you lend your friend at most? Round your result to the
nearest cent, and do not use a $ sign (i.e., if the result is
$1012.4671, enter it as 1012.47)...

Your friend wants to borrow money from you. He proposes to repay
his debt in 5 monthly installments of $200, starting from month 4
(i.e., the first payment will occur at the end of month 4). If the
monthly interest rate on your savings account is 1%, how much would
you lend your friend at most? Round your result to the nearest
cent, and do not use a $ sign (i.e., if the result is $1012.4671,
enter it as 1012.47).

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 2 minutes ago

asked 5 minutes ago

asked 5 minutes ago

asked 6 minutes ago

asked 8 minutes ago

asked 9 minutes ago

asked 9 minutes ago

asked 9 minutes ago

asked 10 minutes ago

asked 10 minutes ago