Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83

Life-leech payday lenders offers 7-day loans at 302% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 20% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $2064.61 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer: 6105.83

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
You've borrowed $6,903.71 and agreed to pay back the loan with monthly payments of $270. Assume the interest rate is 15% stated as an APR. a. How long will it take you to pay back the loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Number of months b. What is the effective annual rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
You plan to borrow $37,200 at a 7.2% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? O a. $2,678.40 O b. $2,370.79 O c. $2,404.40 O d. $6,950.78 Oe. $6,483.94
Life-leech payday lenders offers 7-day loans at 348% APR compounded daily. Furthermore, if you wish to roll-over your debt, without repayment, you may do so paying an additional 14% effective weekly rate (EWR). This amount would be on top of the agreed loan rate. If you were to borrow $6321.11 and held it for 18 months, without ever paying the principal, what would be your balance owing? You may assume 365 days and 52 weeks in a year. Please give your answer in dollars, eg 10000 for an outstanding loan balance of $10,000 Answer:
You apply for a loan of $79,000 with the following terms: a seven-year loan with semi-annual payments of $7,700 (at the end of period payments). Based on this information, what is the APR of the loan Bank Y offers you? 8.74% 8.42% 8.57% 9.02% 8.89%
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You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the loan with 7 equal end-of- year payments. How much interest would you be paying in Year 2? O a. $2,077.39 b. $2,049.26 c. $6,141.81 d. $2,317.00 e. $5,740.01
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You are to repay a loan of $3600.00 with 17 quarterly repayments of $240.00, with the first repayment being one quarter after you took out the loan. Interest is charged at j4 = 7.8390% p.a. One quarter after the last payment of $240.00 you make a partial payment to finish paying off the loan. The size of the partial payment is: Question 1 options: 1) $158.38 2) $220.29 3) $224.61 4) $224.47
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