Question: What is the nominal interest rate compounded monthly if a four-year loan of $6000 is repaid by end-of-month payments of $144.23?

What is the nominal interest rate compounded monthly if a four-year loan of $6000 is repaid by end-of-month payments of $144.23?

Step by Step Solution

★★★★★

3.47 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Nominal Monthly interest rate can be calculated by using following formula Pr... View full answer

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

Document Format (1 attachment)

Word file Icon

726-B-F-F-M (1804).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

Starting three years from now, Dustin plans to withdraw $450 at the beginning of every three months for five years. If he has $7200 now in his savings, and the account earns interest at 4%...

Q:

A loan company offers money at 1.95% per month compounded monthly. (a) What is the nominal interest rate? (b) What is the effective annual interest rate? (c) How many years will it take an investment...

Q:

A loan company offers money at 1.25% per month compounded monthly. (a) What is the nominal interest rate? (b) What is the effective annual interest rate?

Q:

What is the nominal interest rate compounded monthly if a four-year loan of $6000 is repaid by end-of-month payments of $144.23?

Q:

Question 1 of 10 How much did Michelle deposit every month in her savings account if she had $12,000 after 18 month-end deposits? The money in her savings account was growing at 2.46% compounded...

Q:

Please help i need answers a) Find the monthly payment and total interest paid under the standard plan over 10 years. b) Find the monthly payment and total interest paid under the extended plan over...

Q:

3 This assignment covers material from Units 8 to 9 in the Mathematics 244 Study Guide. It is due after Unit 9 in the Study Guide is completed. Total Marks = 100 Business Mathematics 1. What is the...

Q:

(1) Explain the concept of time value of money and provide an example from your own life where that concept is important. (2) Three friends are offered the choice of $500 today or $1000 3 years from...

Q:

1. Amy invested $2,560 for 275 days at a simple interest rate of 3.50% p.a. How much more or less interest would he have earned on the investment if his money was growing at a simple interest rate of...

Q:

Question: LAB 10 1) Ian paid off his student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 7.40% compounded monthly. a. Calculate the...

Q:

Assume that the Prince, Count, and Earl partnership of A & R Problem 12-1 is a limited partnership. Prince and Count are general partners and Earl is a limited partner. How much of the remaining...

Q:

Consider the points A(3, -3, 3), B(4, -5,0), C(-3, -4,0), and D(6,2, 6). (a) Find the volume of the parallelepiped that has the vectors AB, AC, and AD as adjacent edges. NOTE: Enter the exact answer....

Q:

39. LO.5 Weather, Inc., a domestic corporation, operates in both Fredonia and the United States. This year, the business generated taxable income of $600,000 from foreign sources and $900,000 from...

Q:

Workers perceptions about safety. The Safety Climate Index (SCI) measures workers perceptions about the safety of their work environment. A study of safe work practices of industrial workers reported...

Q:

(A) Graph y = -0.8A: + 5.2 in a rectangular coordinate system. (B) Find the A- and y intercepts algebraically to one decimal place. (C) Graph y = -0.8A: + 5.2 in a graphing calculator. (D) Find the...

Q:

write the equation of the line through each indicated point with the indicated slope. Write the final answer in the form y = mx + b. m = -6; (-4. 1)

Q:

write the equation of the line through each indicated point with the indicated slope. Write the final answer in the form y = mx + b. m = 4/3; (-6,2)

Q:

Use the table for the question(s) below. Consider the following probability distribution of returns for Alpha Corporation: The expected return for Alpha Corporation is closest to: 0.00% 10% 6.67%...

Q:

M&M Proposition I with taxes states that the: Select one: a. Value of a levered firm is equal to the present value of the interest tax shield plus the value of an unlevered firm. b. Required return...

Q:

A leader who sets levels of expectation, then gives direction and guidance and determines work schedules uses what type of leadership theory? O A. Supportive O B. Directive OC. Participative O D....