4. A personal loan of $1,000 is made for a period of 18 months at an interest rate of 1.50% per month on the unpaid balance.

5. What nominal interest, compounded quarterly, is required to provide a 6% annual effective interest rate? A 12 % annual effective interest rate?

6. How long will it take for $1 to double in value (disregarding any change in the buying power of the dollar) if:

a) The interest rate is 10% compounded annually?

b) The interest rate is 10% compounded semiannually?

c) The interest rate is 10% ordinary simple interest?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

4. A personal loan of $1,000 is made for a period of 18 months at an...

4. A personal loan of $1,000 is made for a period of 18 months at an interest rate of 1.50% per month on the unpaid balance. If the entire amount owed is repaid in a lump sum at the end of that time, determine: a) The effective annual interest rate b) The total amount of interest paid 5. What nominal interest, compounded quarterly, is required to provide a 6% annual effective interest rate? A 12 % annual effective interest rate?...

1. Calculate the amortization period of a $500,000 loan, with an annual interest rate of 18%...

1. Calculate the amortization period of a $500,000 loan, with an annual interest rate of 18% requiring monthly payments of $7,716.56.

Suppose that the initial loan is $16,000 and the interest rate is 0.5% per month. Interest...

Suppose that the initial loan is $16,000 and the interest rate is 0.5% per month. Interest due is paid at end of each month. $8,000 of the original unpaid balance is to be repaid at the end of months two and three only. How much total interest would have been paid by the end of month three?

A loan of RM5,000 for 20 months at 10% per annum simple interest rate was settled...

A loan of RM5,000 for 20 months at 10% per annum simple interest rate was settled by making 20 monthly payments. Find the outstanding principal just after the eighth payment by using the Rule of 78.

4. A $600,000 CPM fully amortizing loan is made, at a 4% interest rate compounded monthly,...

4. A $600,000 CPM fully amortizing loan is made, at a 4% interest rate compounded monthly, for a 30 year term. Loan comes with a charge of 5 points. What is the effective annual rate on the loan? *do work in EXCEL please*

A bank lends you $20,000 at an interest rate of 0.5% per month for 24 months....

A bank lends you $20,000 at an interest rate of 0.5% per month for 24 months. You repay the loan in equal payments of $P each month. Give the formulae for the following quantities (i) the loan balance Am+1 after m + 1 months in terms of the loan balance Am after m months and the data. (ii) the monthly payment $P. (iii) What is the maximum interest expense that you will pay in any month? (iv) Do you expect...

Angelo takes out a 48-month loan for $40,000 at an interest rate of 12% per year...

Angelo takes out a 48-month loan for $40,000 at an interest rate of 12% per year to purchase a car. The loan payments are made monthly. The amount of the loan that is still remaining after 1 year is closest to？

A visa balance is 1000. Interest rate: 2% / month, 100 paid per month. How many...

A visa balance is 1000. Interest rate: 2% / month, 100 paid per month. How many months to pay off?

Susana takes out a $1,000 loan. The loan carries a 10% annual interest rate and it...

Susana takes out a $1,000 loan. The loan carries a 10% annual interest rate and it will be amortized with fixed annual payments over a five-year period. Construct the amortization schedule for this loan? What is the fraction of the fixed payment represent the repayment of principal in year 2? Assume Annual Compounding Show Formula Find Annual Payment Create Amortization Table Show fraction of the fixed payment represents the repayment of principal in year 2

An interest rate of 21% per year, compounded every 4 months, is equivalent to what effective...

An interest rate of 21% per year, compounded every 4 months, is equivalent to what effective rate per year? Show spreadsheet solutions

Subjects