Question: To borrow 700 you are offered an add on interest loan
To borrow $700, you are offered an add-on interest loan at 9 percent with 12 monthly payments. First, compute the 12 equal payments and then compute the EAR of the loan:
Answer to relevant QuestionsA car company is offering a choice of deals. You can receive $500 cash back on the purchase, or a 3 percent APR, 4-year loan. The price of the car is $15,000 and you could obtain a 4-year loan from your credit union, at 6 ...Ross has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $3,000 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years ...What is the present value, when interest rates are 8.5 percent, of a $75 payment made every year forever? What’s the interest rate of a 7-year, annual $4,000 annuity with present value of $20,000? A local furniture store is advertising a deal in which you buy a $5,000 living room set with three years before you need to make any payments (no interest cost is incurred). How much money would you have to deposit now in a ...
Post your question