Question: To borrow $ 3 , 3 0 0 , you are offered an add - on interest loan at 9 . 7 percent with 1

To borrow $

3, 300,

you are offered an add

-

on interest loan at

9.7

percent with

12

monthly payments.

Compute the

12

equal payments. Use the amount you borrowed and the monthly payments you computed to calculate the APR of the

loan. Then, use that APR to compute the EAR of the loan.

Note: Do not round intermediate calculations and round your final answer to

2

decimal places. To borrow $

3, 300,

you are offered an add

-

on interest loan at

9.7

percent with

12

monthly payments.

Compute the

12

equal payments. Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan.

Note: Do not round intermediate calculations and round your final answer to

2

decimal places.

To borrow $3,300, you are offered an add-on interest loan at

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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!

question 2 QUESTION 2 On June 8, you get a boat loan. Your first payment is due July 8. You write out your check on July 8, drop it in a mailbox that same day, it get postmarked on July 9. and the...

answer the questions in the files. mc and some questions 1. Present Value of Multiple Annuities (LG4) A small business owner visits his bank to ask for a loan. The owner states that he can repay a...

To borrow $1,000, you are offered an add-on interest loan at 5 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year....

27. 5-52 Investing for Retirement (LG4, LG9) Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $4,600 of monthly income...

28.Problem 5-38 Annuity Interest Rate (LG8) To borrow $1,000, you are offered an add-on interest loan at 5 percent. Three loan payments are to be made, one at four months, another at eight months,...

To borow S3,700, you are offered an add-on interest loan at 9.3 percent with 12 monthly payments Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal payment Compute the EAR...

12. To borrow $3,600, you are offered an add-on interest loan at 9.4 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal Payment __________...

Given a 5 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,100, $1,300, $1,300, and $1,600. (Do not round intermediate calculations and round your final...

4 833 Problem 2-12 Free Cash Flow (LG2-5) Tater and Pepper Corp, reported free cash flows for 2018 of $51.1 million and investment in operating capital of $34.5 milion. Teter and Pepper incurred...

(1) Financial Ratios Referencing this week?s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios,...

The account balances for Tim Manufacturing for 2022 are as follows: Sales Revenue $950,000 Selling and administrative expenses 150,000 Income tax expense 90,000 Purchases of raw material 180,000 Raw...

Codger Corp. (CC or the Company) is a U.S. public company that files quarterly andannual reports with the Securities and Exchange Commission (SEC). CC is a leading retail chain operating more than...

E 6 . 1 0 ( LO 3 , 4 ) , AN Business Writing Transitioning from employee to manager has been exciting for Jalen! He enjoys having the responsibility and authority to make decisions, and it is...

AbnerCorporation's bonds mature in22 years and pay11 percent interest annually. If you purchase the bonds for$1,200, what is your yield tomaturity? Your yield to maturity on the Abner bonds...

Recognize that some applicants have a tendency to interview the interviewer and know how to address this mode of behavior

Appreciate the importance of training and development as continuing activities

Understand how an interviewer should respond or react when receiving legally forbidden information that is voluntarily given