Question: The 19,000$ loan will be drawn down in one installment and repaid in five equal installments 1 to 5 years after the drawdown. The repayment

The 19,000$ loan will be drawn down in one installment and repaid in five equal installments 1 to 5 years after the drawdown. The repayment amount is 5401.98. Calculate the real annual percentage rate.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Apologies for the confusion in my previous response The calculation provided was incorrect Lets ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The Dominguez Hills Manufacturing Company is performing an annual evaluation of one of its suppliers, the Carson Company. Bo, purchasing manager of the Dominguez Hills Manufacturing Company, has...

Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...

Treetop Associated Group (TAG) is seeking financing for acquisition and development of 147 homesites. The land will cost $1.5 million, and TAG estimates direct development costs to be an additional...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

21:49 A . 06. Assignment one July 2019 - Read-only 47% Sign in to edit and save changes to this file. UNIVERSITY OF NAIROBI, SCHOOL OF BUSINESS DEPARTMENT OF FINANCE AND ACCOUNTING MSC PROGRAMME...

1. Calculate Periodic Interest Rate (i) and Compounding periods (n) Nominal interest (j) Compounding Frequency (m) Periodic Interest Rate (i) Term Compounding periods (n) 6% Annually 5 years 7.2%...

1. Prepare (using a spreadsheet package) an entire duration amortization schedule as follows: Initial amount: Shs 8,000,000]: rate of interest: 14% per annum; period: 12 years payable monthly in...

1. Discuss how executive compensation can be used to reduce agency problems between shareholders and management of a company. 2. Prepare (using a spreadsheet package) an entire duration amortization...

can somebody help me fill out the schedule 1 and 2 1040 with this problem Matthew B. (age 42) and Courtney S. (age 41) Mumford are married and live at 11426 W. Antelope Drive, Sioux Falls, SD 57107....

Matthew B. (age 42) and Courtney S. (age 41) Mumford are married and live at 11426 W. Antelope Drive, Sioux Falls, SD 57107. Matthew is the manager for The Pour House, a popular bar and grill in...

Aldridge Enterprises has a long-standing policy of acquiring company equipment by leasing. Early in 2011, the company entered into a lease for a new milling machine. The lease stipulates that annual...

In C++, create a class to act as a generic array (i.e. the user will be able to choose the data type to be stored by passing the appropriate template argument. Integer template arguments will also be...

Consider the follow series:Lao ( - 1 ) " n ! ( x - 1 0 ) " and answer the following questions.a ) Use the Ratio Test to determine the condition of absolute convergence. Please clearly show all your...

Jefferson, CPAs provides accounting services for a client at a flat contract rate of $ 10,000 a month. The terms of the contract include a required payment on the 15th day of each month for the prior...

The file statepop.dat, used in Example 6.5, also contains information on total number of farms, number of veterans, and other items. 1. Plot the total number of farms versus the probabilities of...

Use the file statepop.dat for this problem. a. Plot the total number of veterans versus the probabilities of selection i. Does your plot indicate that unequal-probability sampling will be helpful...

Return to the supermarket example of Section 6.1. Now lets select two supermarkets with replacement. List the 16 possible samples (A,A), (A,B), etc., and find the probability with which each sample...

Hurricane Inc. purchased a portfolio of available-for-sale securities in 2016, its first year of operations. The cost and fair value of this portfolio on December 31, 2016, was as follows: On June...

Which statement about business plans is accurate? Multiple Choice Small businesses do not need a business plan. A business plan is created once and should not be changed. Every business needs to...

What are some of the physical considerations that a developer should be concerned with when purchasing land? How should such considerations be taken into account when determining the price that...

Robust Properties is planning to go public by creating a REIT that will offer 1 million shares of stock. It is currently trying to develop a pro forma set of financial statements. Robust is faced...

A partially amortizing mortgage is made for $60,000 for a term of 10 years. The borrower and lender agree that a balance of $20,000 will remain and be repaid as a lump sum at that time. a. If the...

=+(cf. Example 5.8, Section 5.3) and that each component has a .999 probability of functioning without failure. What lower bound can you put on the reliability (i.e., the probability of functioning...

=+12. Suppose that 55% of all adults regularly consume coffee, 45% regularly consume carbonated soda, and 70% regularly consume at least one of these two types of drinks.

=+.01 probability of failing. Find an upper bound on the probability that the entire system fails.