HomeworkLib
Question

A loan has an APR of 8.5 percent and an EAR of 8.5 percent. Given this,...

A loan has an APR of 8.5 percent and an EAR of 8.5 percent. Given this, the loan must:

A.

have a one-year term.

B.

have a zero percent interest rate.

C.

charge interest annually.

D.

must be an interest-only loan.

E.

require the accrued interest be paid in full with each monthly payment.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
A loan has an APR of 8.5 percent and an EAR of 8.5 percent. Given this,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 15 A loan has an APR of 85 percent and an EAR of 85 percent...

    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...

  • 25. You have an outstanding loan with an EAR of 10.5 percent. What is the APR...

    25. You have an outstanding loan with an EAR of 10.5 percent. What is the APR if interest is compounded monthly? 26. Curtis Builders is borrowing $150,000 today for 5 years. The loan is an interest-only loan with an APR of 9.5 percent. Payments are to be made annually. What is the amount of the first annual payment? 27. What is the future value of a lump sum of $100,000 invested for 6 years at an annual return of 4.0%...

  • To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12...

    To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) 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. (Do not round intermediate calculations and round your answer to 2 decimal places,) % EAR To borrow $1,450, you...

  • A loan that compounds interest monthly has an APR of 22 percent. What is the EAR?...

    A loan that compounds interest monthly has an APR of 22 percent. What is the EAR? a)24.36 percent b) 23.89 percent c) 22.00 percent d) 23.12 percent

  • Consider the following loan. Complete parts (a)-(c) below An individual borrowed $73,000 at an APR of 7 % , which w...

    Consider the following loan. Complete parts (a)-(c) below An individual borrowed $73,000 at an APR of 7 % , which will be paid off with monthly payments of $595 for 18 years. a. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount. The amount borrowed is $ the annual interest rate is the number of payments per year is the loan term is years, and the payment amount...

  • JK’s is borrowing $132,000 for three years at an APR of 7.6 percent. The loan calls...

    JK’s is borrowing $132,000 for three years at an APR of 7.6 percent. The loan calls for the principal balance to be reduced by equal amounts over the life of the loan. Interest is to be paid in full each year. The payments are to be made annually at the end of each year. How much will be paid in interest over the life of this loan?

  • To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12 monthly payments

    To borrow $1,450, you are offered an add on interest loan at 8.5 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) 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. (Do not round intermediate calculations and round your answer to 2 decimal places.) 

  • You need a $200,00 Loan. Option is a​ 15-year loan at an APR of 8.5​% What...

    You need a $200,00 Loan. Option is a​ 15-year loan at an APR of 8.5​% What is the monthly payment? What is the amount of total payments made?

  • Left bank has a standing rate of 8.5% APR for all bank loans requires monthly payments...

    Left bank has a standing rate of 8.5% APR for all bank loans requires monthly payments what is the monthly payment if a loan is A) 135,000 for five years B)255,000 for 10 years C) 1250000 for 24 years? what is the effective annual rate for each of these loans Save Homework: Chapter 15 Homework Score: 0 of 1 pt 2 of 10 compte HW Score: 0%, 0 of 10 pts P15-3 (similar to) Question Help Straight bank loan. Lot...

  • A loan is offered with monthly payments and a 12.50 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not...

    A loan is offered with monthly payments and a 12.50 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT