Question
In: Finance
The Business Development Bank is willing to loan Alysha the$31,000 she needs to start her...
The Business Development Bank is willing to loan Alysha the $31,000 she needs to start her new business. The loan will require monthly payments of $767.10 over 5 years.
1. What is the effective monthly rate on this loan?(Round answer to 1 decimal place, e.g. 15.2%. Do not round your intermediate calculations.)
2. With monthly compounding, what is the nominal (annual) interest rate on this loan? (Round answer to 1 decimal place, e.g. 15.2%.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
The Business Development Bank is willing to loan Alysha the $31,000 she needs to start her...
The Business Development Bank is willing to loan Alysha the
$31,000 she needs to start her new business. The loan will require
monthly payments of $767.10 over 5 years.
1, What is the effective monthly rate on this loan?
(Round answer to 1 decimal place, e.g. 15.2%. Do not
round your intermediate calculations.)
2, With monthly compounding, what is the nominal (annual)
interest rate on this loan? (Round answer to 1 decimal
place, e.g. 15.2%.)
The Business Development Bank is willing to loan Alysha the $38,000 she needs to start her...
The Business Development Bank is willing to loan Alysha the
$38,000 she needs to start her new business. The loan will require
monthly payments of $868.51 over 5 years.
A. What is the effective monthly rate on this loan?
(Round answer to 1 decimal place, e.g. 15.2%. Do not
round your intermediate calculations.)
B. With monthly compounding, what is the nominal (annual)
interest rate on this loan? (Round answer to 1 decimal
place, e.g. 15.2%.)
Mario has an idea for a new business, but needs start-up money. The bank is not...
Mario has an idea for a new business, but needs start-up money.
The bank is not willing to loan him the money because of past
business dealings that resulted in Mario being declared bankrupt.
Mario tells the bank that this grandmother is willing to mortgage
her house in order to get Mario the money that he needs. Mario
brings his grandmother, who speaks only Italian, into the bank to
sign the mortgage papers. In the presence of the loans officer,...
In order to start this coffee business, the Manager took a 300K loan from the bank....
In order to start this coffee business, the Manager took a 300K
loan from the bank. He/she will have to pay 10K monthly for three
years.
a-Calculate the effective interest rate (per year).
b-If the coffee business makes a Revenue=19K/month and has an
operational cost of 12K/Month, Calculate the PW if the study period
is 5 years and the MARR is equal to 1.5% per month. Solve by Hand
Please
In order to start a coffee business, the Manager took a 300K loan from the bank....
In order to start a coffee business, the Manager took a 300K
loan from the bank. He/she will have to pay 10K monthly for three
years.
a-Calculate the effective interest rate (per year).
b-If the coffee business makes a Revenue=19K/month and has an
operational cost of 12K/Month, Calculate the PW if the study period
is 5 years and the MARR is equal to 1.5% per month.
Solve by spreadsheet.
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The
owner states that she can repay a loan at $900 per month for the
next two years and then $1,800 per month for three years after
that. If the bank is charging customers 8.5 percent APR, how much
would it be willing to lend the business owner? (Round your answer
to two decimal places.)
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The
owner states that she can repay a loan at $900 per month for the
next two years and then $1,800 per month for three years after
that. If the bank is charging customers 8.5 percent APR, how much
would it be willing to lend the business owner? (Round your answer
to two decimal places.)
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The
owner states that she can repay a loan at $900 per month for the
next two years and then $1,800 per month for three years after
that. If the bank is charging customers 8.5 percent APR, how much
would it be willing to lend the business owner? (Round your answer
to two decimal places.)
A small business owner visits her bank to ask for a loan. Theowner states that...
A small business owner visits her bank to ask for a loan. The
owner states that she can repay a loan at $900 per month for the
next two years and then $1,800 per month for three years after
that. If the bank is charging customers 8.5 percent APR, how much
would it be willing to lend the business owner? (Round your answer
to two decimal places.)
A small business owner visits her bank to ask for a loan. Theowner states that...
A small business owner visits her bank to ask for a loan. The
owner states that she can repay a loan at $900 per month for the
next two years and then $1,800 per month for three years after
that. If the bank is charging customers 8.5 percent APR, how much
would it be willing to lend the business owner? (Round your answer
to two decimal places.)
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