Question

QUESTION 15 A loan has an APR of 85 percent and an EAR of 85 percent Given this the loan must have a one-year term have a zero percent interest rate charge Interest annually be partially amortized with each loan payment require the accrued Interest be paid in full with each monthly payment det of 532.500, and total of 8.700 h ory is $13.00, what is the current rutie QUESTION 17 Aberton's has total assets of 5537 000, nefesses of $112.000, og 201 52 084 O 1.18 194 a ses for day What is there QUESTION 18 American Life Insurance offers a perpety that paysannual payments of $12.000 This c 450 percent 3.87 percent 410 percent 421 percent 439 percent

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet. For detailed answer refer to the supporting sheet.

A B C D E F G H I J Answer Part 16) The correct answer is Charge interest annually Explanation APR stands for annual percentage rate. It is annual rate of interest charge on any loan and Effective annual rate of interest is after considering the compounding effect of interest due to monthly, quarterly or semiannual compounding. Since the both rate are same it means their is annual compounding and interest is charged annually Part 17) The correct answer is 1.94 Current ratio = (total assets - fixed assets)/(total debt - long term debt) e = (537800-412400)/(388700-323900) S = 1.94 5 Part 18) 5 The correct answer is - 4.80 Percent 3 Interest Rate = annual payment/contract amount = 12000/250000 = 4.8 Percent