A loan of $3,300 for a new, high-end laptop computer is to be repaid in 14...

 

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A loan of $3,300 for a new, high-end laptop computer is to be repaid in 14 end-of-month payments (starting one month from now). The monthly payments are determined as follows. Loan principal Interest for 14 months at 1.4% per month Loan application fee $3,300 646.80 171.02 Total 54,117.82 Monthly payment = $4,117.82/14 = $294.13 What nominal and effective interest rates per year are actually being paid? Hint: Draw a cash-flow diagram from the perspective of the lender. Choose the correct cash-flow diagram from the perspective of lender below. O A. O B. $3,300 $294.13. $294.13. 0 1 2 14 15 2 3 14 15 $3,300 OC. OD. $3,300 $294 13. $294.13.. 1 2 3 13 14 1 2 3 13 14 S3,300 The nominal interest rate is % per year. (Round to one decimal place.) The effective interest rate is % per year. (Round to one decimal place.) 3. A loan of $3,300 for a new, high-end laptop computer is to be repaid in 14 end-of-month payments (starting one month from now). The monthly payments are determined as follows. Loan principal Interest for 14 months at 1.4% per month Loan application fee $3,300 646.80 171.02 Total 54,117.82 Monthly payment = $4,117.82/14 = $294.13 What nominal and effective interest rates per year are actually being paid? Hint: Draw a cash-flow diagram from the perspective of the lender. Choose the correct cash-flow diagram from the perspective of lender below. O A. O B. $3,300 $294.13. $294.13. 0 1 2 14 15 2 3 14 15 $3,300 OC. OD. $3,300 $294 13. $294.13.. 1 2 3 13 14 1 2 3 13 14 S3,300 The nominal interest rate is % per year. (Round to one decimal place.) The effective interest rate is % per year. (Round to one decimal place.) 3.

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