If you borrow $7400 at $700 interest for one year, what is your effective interest rate...

If you borrow $7400 at $700 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.)

Effective Rate of Interest

a. Annual payment %

b. Semiannual payments %

c.Quarterly payments %

d. Monthly payments %

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Compound Interest 22.) You borrow 1,000,000 for one year from a friend at an interest rate...

Compound Interest 22.) You borrow 1,000,000 for one year from a friend at an interest rate of 1% per month instead of taking a loan from a bank at a rate of 13% per year. Compare how much money you will save or lose on the transaction. 24.) John expects to receive Php 20,000 in 10 years. How much is the money worth now considering interest at 6% compounded quarterly? 25.) A man who won P 500,000 in a lottery...

You borrow $4500 for one year from a friend at an interest rate of 2% per...

You borrow $4500 for one year from a friend at an interest rate of 2% per month instead of taking a loan from a bank at a rate of 17% per year (compounded monthly). Compare how much money you will save or lose on the transaction.

Alex and Beatrice each borrow $10,000 at an annual effective interest rate of 8%.

Alex and Beatrice each borrow $10,000 at an annual effective interest rate of 8%. Alex makes a payment of $1,000 at the end of each year, and Beatrice makes a payment of $500 at the end of each half year. Both borrowers will pay a final, smaller payment at the end of the loan (a "drop payment"). Determine the total amount of interest paid by the two borrowers.

You are quoted an interest rate of 14% per year, compounded quarterly. What is the effective...

You are quoted an interest rate of 14% per year, compounded quarterly. What is the effective yearly interest rate?You are quoted an interest rate of 14% per year, compounded quarterly. What is the effective yearly interest rate?

You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate...

You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate is 4.46%, what is your monthly payment?

You plan to borrow $35,000 at an 8% semiannual interest rate. It is a 3 year...

You plan to borrow $35,000 at an 8% semiannual interest rate. It is a 3 year loan that requires 6 payments to fully amortize. a) Calculate the amount of semiannual payment you would be making every period? b) Set-up an amortization schedule.

You borrow a ten-year loan of $1,500,000. The annual interest rate is 13% that to be...

You borrow a ten-year loan of $1,500,000. The annual interest rate is 13% that to be repaid every 2 weeks. Assume 52 weeks a year. List the numerical answers and EXCEL formulas of payment, interest, principal paid and end balance of 115th periodic payment in the table provided. Payment Interest Principal End Balance (Period 115) (Numerical Answer) (Numerical Answer) (Numerical Answer) (Numerical Answer) (EXCEL Formula) (EXCEL Formula) (EXCEL Formula) (EXCEL Formula)

Suppose the 1-year effective annual interest rate is 4.6% and the 2-year effective rate is 3.2%....

Suppose the 1-year effective annual interest rate is 4.6% and the 2-year effective rate is 3.2%. Compute the fixed rate in a 2-year amortizing interest rate swap based on $440,000 of notional principal in the first year and $240,000 in the second year. Please show steps a. 4.11% b. 3.91% c. 4.69% d. 3.22% e. 3.63%

Jumbo Enterprises plans to borrow R1 000 000 for one year. The stated interest rate is...

Jumbo Enterprises plans to borrow R1 000 000 for one year. The stated interest rate is 15% per annum. Required: Use the information provided above to calculate the effective interest rate if: 4.3.1 The interest is discounted 4.3.2 There is a 25% compensating balance requirement

You borrow a GPM of $50,000 with annual payments and 3- year term. The interest rate...

You borrow a GPM of $50,000 with annual payments and 3- year term. The interest rate is 10% and the payment factors from years 1 to 3 are as follows: 50%, 50% and 100% Questions: 1.What are the annual payments for years 1 to 3? 2.What is remaining balance at the end of year 1? 3.What are interest payment and principal payment for years 1 to 3?

Subjects