For an $8 fee, a loan shark says that you can immediately borrow up to $400 for one month (For every $400 borrowed, $8 is charged). If the offer is accepted, what are: a. The nominal interest rate per year? b. The effective rate per year?
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For an $8 fee, a loan shark says that you can immediately borrow up to $400
for one month (For every $400 borrowed, $8 is charged). If the offer is accepted, what
are:
a. The nominal interest rate per year?
b. The effective rate per year?
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- What is the total amount of interest from a 5,000 loan after three years with a simple interest rate of 6?How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?1. You borrow $20,000 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after 6 months? How much is the interest?
- What happens to happens to the annual payment on a loan as the term of the loan increases? O It stays the same It decreases It increasesWhat is the U.S 6 month interest rate?Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
- Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7%interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)It is likely that airplane tickets will increase 8% in each of the next 5 years. The cost of a plane ticket at the end of the first year will be 10622. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 5 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places.If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was the interest rate you charged? Please show how you got to the answer
- A grandfather gave his grandchild $100 for his 10th birthday. The child’s parents talked him into putting this gift into a bank account so that when he had grandchildren of his own he could give them similar gifts. The child lets this account grow for 50 years, and it has $100,000. What wasthe interest rate of the account?Define the term Interest?14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.
