Question

Match each of the definitions in #1-3 with one of the following rates:                               &nb

Match each of the definitions in #1-3 with one of the following rates:

                                                            Effective Annual Rate (EAR)

                                                            Annual Percentage Rate (APR)

Stated Interest Rate

The most important interest rate to use when comparing loans:  

The interest rate that is quoted by a lender:  

The interest rate charged per period multiplied by the number of periods per year:  

Match each of the definitions in #4-6 with one of the following loans:

Amortized Loan

Pure Discount Loan

Balloon Loan

A loan where the regular payments are insufficient to retire the entire loan amount, which then must be repaid with one lump sum:  

A loan where payments are equal in amount and include both interest and principal:

A loan where the borrower receives funds up front and repays it with a single lump sum in the future:  

NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING

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Homework Answers

Answer #1

1)

The most important interest rate to use when comparing loans:  Annual percentage Rate

The interest rate that is quoted by a lender: Stated interest rate

The interest rate charged per period multiplied by the number of periods per year: Annual percentage Rate

2)

A loan where the regular payments are insufficient to retire the entire loan amount, which then must be repaid with one lump sum: Balloon Loan

A loan where payments are equal in amount and include both interest and principal: Amortized Loan

A loan where the borrower receives funds up front and repays it with a single lump sum in the future: Pure Discount Loan

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