Question

You are in a desperate need of cash and turn to your uncle who has offered...

You are in a desperate need of cash and turn to your uncle who has offered to lend you some money. You decide to borrow $1,230 and agree to pay back $1,610 in two years. Collapse question part (a) What annual interest rate is your uncle charging you? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 8.72%.) Rate of interest charged by uncle %

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Calculator
Inputs:
PV      (1,230.000)
PMT                      -  
FV         1,610.00
N                       2
Output:
I/Y = YTM 14.41%

Answer is:

14.41%

please rate.

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
Your​ firm's bank has offered you two options for​ short-term financing in the amount of $500,000....
Your​ firm's bank has offered you two options for​ short-term financing in the amount of $500,000. The first option is a committed line of credit with a commitment fee of 0.4​% ​(EAR) and an interest rate of 8​% (APR, compounded​ quarterly). The second option is a loan with a 3​% compensating balance and an interest rate of 7.6​% (APR, compounded​ quarterly). If you need $485,000 in financing at the beginning of the year and plan to pay it back at...
Quantitative Problem: You need $15,000 to purchase a used car. Your wealthy uncle is willing to...
Quantitative Problem: You need $15,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 5% annual return. a) What will be your annual loan payments? Round your answer to the nearest cent. Do not round intermediate calculations. b) How much of your first payment will...
Quantitative Problem: You need $11,000 to purchase a used car. Your wealthy uncle is willing to...
Quantitative Problem: You need $11,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 5% annual return. What will be your annual loan payments? Round your answer to the nearest cent. Do not round intermediate calculations. $ How much of your first payment will be...
PLEASE ANSWER ALL, I am unable to post individually. Do NOT answer, If you are not...
PLEASE ANSWER ALL, I am unable to post individually. Do NOT answer, If you are not going to complete all, and or request to post the remaining separately. Thank you ! 4.Your birthday is next week and instead of other presents, your parents promised to give you $2,700 in cash. Since you have a part-time job and, thus, don’t need the cash immediately, you decide to invest the money in a bank CD that pays 7.80 percent, compounded quarterly, for...
You decide to lend your sister, who has never defaulted on a loan (ie. ρd=0), $1000...
You decide to lend your sister, who has never defaulted on a loan (ie. ρd=0), $1000 for one year. At the end of the year she agrees to pay you $1040. a)What is the nominal interest rate you and your sister agreed upon? b)Suppose you expected the inflation rate, πe, to be 3%. What was the realrate of interest that you expectto receive? c)However, at the end of the year,you realized that the inflation rate was actually 5%. What is...
EFFECTIVE RATE OF INTEREST Find the interest rates earned on each of the following. Round each...
EFFECTIVE RATE OF INTEREST Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $750 and promise to pay back $780 at the end of 1 year. % You lend $750 and the borrower promises to pay you $780 at the end of 1 year. % You borrow $60,000 and promise to pay back $116,924 at the end of 7 years. % You borrow $8,000 and promise to make payments of...
Effective rate of interest Find the interest rates earned on each of the following. Round each...
Effective rate of interest Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $700 and promise to pay back $735 at the end of 1 year. % You lend $700 and the borrower promises to pay you $735 at the end of 1 year. % You borrow $78,000 and promise to pay back $196,418 at the end of 12 years. % You borrow $9,000 and promise to make payments of...
Effective rate of interest Find the interest rates earned on each of the following. Round each...
Effective rate of interest Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $720 and promise to pay back $756 at the end of 1 year. % You lend $720 and the borrower promises to pay you $756 at the end of 1 year. % You borrow $60,000 and promise to pay back $183,949 at the end of 13 years. % You borrow $15,000 and promise to make payments of...
You have decided to buy a used car. The dealer has offered you two options: (FV...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Pay $550 per month for 30 months and an additional $12,000 at the end of 30 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $17,593, due when you purchase the car. 1-a. Determine how much cash...
You borrow $55,000; the annual loan payments are $5,834.36 for 30 years. What interest rate are...
You borrow $55,000; the annual loan payments are $5,834.36 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT