You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of...

You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of 4000, with the ﬁrst payment occurring one year from today. What annual interest rate are you paying?

Solutions

Expert Solution

Just calculate the IRR of the same and you will get the Annual Interest rate. I have shown the result in 4 decimals.

Providing you the statement showing accuracy of our calculation as well for your better understanding

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five...

If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay? please i want the result step by step by hand not using excel! thanks in advance

If you borrowed 24000 at 6% annual interest. You agreed to repay the loan with five...

If you borrowed 24000 at 6% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?

Q.5 You have borrowed $24,000 and agreed to pay back the loan with monthly payments of...

Q.5 You have borrowed $24,000 and agreed to pay back the loan with monthly payments of $200. If the interest rate is 12%,how long will it take you to pay back the loan?

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal...

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal monthly payments over 15 years. What is the size of the monthly payment rounded up to nearest cent? How much of the 24th payment is interest? How much of the 137th payment goes towards principal? How much principal was paid down in the third year? Now assume that in part (a) you had rounded the payments down to the nearest dollar, what would be...

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly...

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly payments over a 15 year amortization term. (a) What is the size of the monthly payment?t Enter answer to 2 decimal places b) Now assume that in part (a) you had rounded the payments DOWN to the nearest dollar, what would be the size of the final payment? Round down to nearest dollar means for example 121.8 is rounded to $121.00 (NOT 122) c)...

You have just borrowed $300,000 to buy a condo. You will repay the loan in equal...

You have just borrowed $300,000 to buy a condo. You will repay the loan in equal monthly payments of $3,950.37 over the next 20 years. a-1. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a-2. What is the APR? (Do not round intermediate calculations. Enter your answer as a whole percent.) b. What is the effective annual rate on that loan? (Do...

You have just borrowed $160,000 to buy a condo. You will repay the loan in equal...

You have just borrowed $160,000 to buy a condo. You will repay the loan in equal monthly payments of $1,287.40 over the next 30 years. a-1. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a-2. What is the APR? (Do not round intermediate calculations. Enter your answer as a whole percent.) b. What is the effective annual rate on that loan? (Do...

You have just borrowed $100,000 to buy a condo. You will repay the loan in equal...

You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly payments of $804.62 over the next 30 years. a. What monthly interest rate are you paying on the loan?' b. What is the APR? c. What is the effective annual rate on that loan? d. What rate is the lender more likely to quote on the loan?

You have just borrowed $200,000 to buy a condo. You will repay the loan in equal...

You have just borrowed $200,000 to buy a condo. You will repay the loan in equal monthly payments of $2,106.45 over the next 25 years. a-1. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Monthly interest rate % a-2. What is the APR? (Do not round intermediate calculations. Enter your answer as a whole percent.) APR% b. What is the effective annual...

1) Lilly agreed to repay a loan of $21,000 with payments of $500 per month. Using...

1) Lilly agreed to repay a loan of $21,000 with payments of $500 per month. Using an interest rate of j12=3.6%, calculate the amount of principal repaid during the second year of the loan. 2) Ace Industries borrowed $150,000 amortized over 10 years at a rate of j12=4.8% with monthly payments (rounded up to the next cent). Calculate their final payment.

Subjects