A local lending institution advertises the 51-50 Club. A person may borrow $2000 and repay $51 for
Question:
A local lending institution advertises the "51-50 Club." A person may borrow $2000 and repay $51 for the next 50 months, beginning 30 days after receiving the money. Compute the nominal annual interest rate for this loan. What is the effective interest rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
P 2000 n 50 months i A 5100 A P AP i n 5100 2000 AP i 50 AP i 50 51...View the full answer
Answered By
AJIN kuriakose
I have completed B.Tech in Electrical Engineering & Masters in Power & Control From one of the best universities in India. I got the 99.05 percentile in the Gate Electrical Engineering Exam. I can Help students solving assignments in Electrical subjects like Power Electronics, Control system, Analog, Network Theory & Engineering Mathematics. Clear your fundamentals and develop problem-solving skills and analytical skills to crack the exam.
Get guidance and the opportunity to learn from experienced...
I can provide tuition for Electrical engineering subjects (Power Electronics, Digital electronics, Network Theory, Control System & Engineering Mathematics). The toughest subject of Electrical engineering can be made simple in online classes...
I can also solve it.
1 .I can help you with your assignments or exams or quiz or tutoring.
2. Very strict to the deadlines.
Message me for any help in assignments, live sessions. I am here to help students for all assignments, tests and exams and I will make sure you always get _95% In your subject.
Contact me in solution inn for any help in your semester, projects and for many more things . Also feel free to contact me through solution inn and for any advise related to tutoring and how it works here.thank you.
5.00+
5+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
What quarterly compounded nominal rate and effective rate of interest are being charged on a $5000 loan if quarterly payments of $302.07 will repay the loan in 5 years
-
What nominal annual rate of interest compounded semi-annually is equivalent to an effective rate of 6.37%?
-
Compute the nominal annual rate of interest compounded quarterly at which $350 paid at the end of every three months for six years accumulates to $12 239.76.
-
Assume that you are looking at three perpetuities. Perpetuity 1 (P) has annual cash flows of $850 in Years 1 through infinity (1 - oo) and a present value at Year 0 of $10,119.047619. Perpetuity 2...
-
For a bathtub with a rectangular base, Toricelli's Law implies that the height h of water in the tub t seconds after it begins draining is given by Where l and w are the tub's length and width, d is...
-
How does a joint venture work? What are the advantages of this arrangement? What are the disadvantages?
-
Consider the following cash flow profile: With a compounded annual interest rate of 6 percent, what single sum of money at the end of the sixth year will be equivalent to the cash flow series? EOY...
-
It is your first day on the job as a trainee for an entry position in the accounting department of Alimex Inc., a merchandising company. The company controller provides you with the following...
-
AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Fixed Variable Component...
-
Prepare an estate tax return (Form 706) for Adam Zugg of 45 Cornfield Place, Midwest City, IL 60000. Adam died October 31, 2017. He was survived by his wife, Callie, and their son, Zebulon. At the...
-
A local bank will lend a customer $1000 on a 2-year car loan as follows: Money to pay for car$1000 Two years' interest at 7%: 2 x 0.07 x 1000140 24 monthly payments = 1140/24 = $47.50$1140 The first...
-
A loan company has been advertising on television a plan that allows people to borrow $1000 and make a payment of $10.87 per month. This payment is for interest only and includes no payment on the...
-
Write an equation of the following hyperbolas. (-4, 0) (4, 0) + 2 Focus (5, 0) Focus (-5, 0)
-
Distinguish between power, politics, and confect in organizations.
-
Comment on issues related to an evaluation of organizational development.
-
Define the following terms: (a) conflict frame; (b) cognitive confict; (c) institutionalized confict; (d) structured confict; (e) dysfunctional confict; (f) opportunity power; (g) alienative...
-
Identify the costs likely to be associated with stress at work.
-
Consider the nature of bullying/incivility and its impact on the victim in contemporary organizations.
-
The following differential equation is going to be solved using a finiteelement equation: \[\frac{\mathrm{d}^{2} u}{\mathrm{~d} x^{2}}=0, \quad 1 \leq x \leq 2 \quad u(1)=0, \frac{\mathrm{d}...
-
Why is inventory management important for merchandising and manufacturing firms and what are the main tradeoffs for firms in managing their inventory?
-
Determine the minimum average duration of assets a bank needs if it wants to tolerate a duration gap not lower than -1.5 years, assuming that the average duration of liabilities is 3 years, that...
-
Comparison of five mutually exclusive alternatives is shown. One must be accepted. According to the B/C ratio, which alternative should be selected (costs increase from A to E). B/C Comparison Ratio...
-
A consulting engineer is currently evaluating four different projects for the Department of Housing and Urban Development. The future worth of costs, benefits, disbenefits, and cost savings is shown....
-
From the data shown below for six mutually exclusive projects, determine which project, if any, should beselected. Project ID Annual cost, 8000 25,000 15,000 32,000 17,000 20,000 Annual benefits, ?...
-
In 2006, e-Design was invited unexpectedly to participate in a design competition to provide new logos and new identity for Denmark's National Sports Team, a prestige client.What should the e-Design...
-
A golfer strikes the ball from the left and the parabola is shown. The height of the parabola is 7 metres and the maximum distance horizontal distance is approximately 40 metres. The distance the...
-
When a company is bouget out and migrates data to a new company's location, what cultural aspects of the change would the new company expect or experience when working with new database...
Study smarter with the SolutionInn App