Question
In: Finance
Loan rates of interest Personal Finance Problem John Flemming has been shopping for a loan to...
Loan rates of interest Personal Finance Problem John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The information available with respect to each of the three $7,000 loans is shown in the following table, Each loan requires John to make one payment at the end of each year.
Loan Principal Annual payment Term (years)
A $7,000 $2,304.91 4
B $7,000 $1,846.48 5
C $7,000 $2,618.78 3
a. Determine the interest rate associated with each of the loans.
b. Which loan should John take?
a. The interest rate, r, on loan A is
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
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Monthly loan payments: Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
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Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
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John has completed an application for a 7-years personal loan for the amount of $28833. In...
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John arrived in Australia two years ago. He has been living with
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Interest rate for an annuity Personal Finance problem: Anna Waldheim was seriously injured in an industrial...
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What has happened mortgage and car loan interest rates recently?
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compound interest with non-annual periods after examining the various personal loan rates available to you do...
compound interest with non-annual periods after examining the
various personal loan rates available to you do you find that you
can borrow funds from the finance company at a APR of 7% compounded
annually or from a bank at an APR 8% compounded monthly which
alternative is more attractive
Jim and Wendy had the following interest expenses in 2019: Personal Loan………………… $500.00 Student Loan Interest…………....
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Personal Loan………………… $500.00
Student Loan Interest………….
$3,000.00
Mortgage interest……………… $5,000.00
Investment interest…………….$7,500.00
Net
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What is their interest deduction for 2019?
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