Calculate the actual annual percentage rate of interest

Assignment Help Financial Management
Reference no: EM131307318

1. For a loan of $1,300 at an annual interest of 11% for 18 months, using the level method, calculate (a) the monthly payment, (b) the monthly interest portion (MIP), and (c) the monthly principal portion (MPP).

2. Calculate the actual annual percentage rate of interest for the loan in Exercise 1 using both formulas APR1 a and APR2 a.

Reference no: EM131307318

Questions Cloud

Find the simple rate of interest on transactions : Find the simple rate of interest on the following transactions using the dollar weighted method $312.50 initial deposit on March 15.
What will the proceeds be for a loan : Find the proceeds from a loan of $2,300 for 2 years at a discount rate of 4.9%.- What will the proceeds be for a loan of $900 discounted by $75?
How energy and materials flow in your local ecosystem : How energy and materials flow in your local ecosystem and how this is related to your selected issue. Some actions those in your community can take to diminish the issue.
Find the payment at the start of each month : How much will he be able to collect for his retirement given that his retirement fund bears 11% interest compounded semiannually?
Calculate the actual annual percentage rate of interest : Calculate the actual annual percentage rate of interest for the loan in Exercise 1 using both formulas APR1 a and APR2 a.
What is the original source of the energy : What is the original source of the energy? How is energy transferred within living systems? You may answer in written text and/or by drawing and labeling a diagram of a generalized system.
What will be breakdown between interest and principal : What will be her monthly payment and the breakdown between interest and principal for (1) the 1st payment, (2) the 10th payment, and (3) for the 23rd payment?
What will the balance due be under the rule of 78 method : Glenn had an auto loan of $4,500 at 7% annual interest for 3 years. He decides to pay off the remaining balance after he has made 29 payments. What will the balance due be under the rule of 78 method?
Compute the unit product cost for one unit of each model : Compute the unit product cost for one unit of each model and Compute the activity rate for each of the activity cost pools - Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products.

Reviews

Write a Review

Financial Management Questions & Answers

  How do you find this using financial calculator

Merton Enterprises has bonds on the market making annual payments, with 18 years to maturity, and selling for $955. At this price, the bonds yield 9.2 percent. Required: What must the coupon rate be on Merton’s bonds? How do you find this using a fin..

  Discusses the role of greed for gain

St. Thomas Aquinas discusses the role of “greed for gain, which knows no limit and tends to infinity.” Michael Norton discusses the role of money in society and how it can make people happier. As a society, how can we minimize the “greed for gain” wh..

  Numerator in computing return on investment-flexible budget

A static budget report is appropriate for. The flexible budget report includes all of the following sections except. Controllable fixed costs are deducted from the contribution margin to arrive at.  The numerator in computing return on investment is

  Put-call parity arbitrage

Suppose European put and calls exist on the same stock, each with X = $75 and the same expiration date. The current stock price is $68. The current price of the put is $3.50 higher than that of the call, and a risk-free investment over the life of th..

  What are some indications that investors are risk averse

What are some indications that investors are risk averse? How would you as a portfolio manager support these investors? What kind of recommendations would you make? What would you recommend as a portfolio manager to reduce the risk for a risk adverse..

  Interest compounded monthly

Linda borrows $18,500 from the bank at 12% APR interest compounded monthly to be repaid in 36 equal monthly instalments. What is her monthly payment? What is the interest paid in the first month? What is the principal paid in the first month?

  The call-option value of a callable bond

The call-option value of a callable bond is likely to be high when a) interest rates are high and expected to remain high b) interest rates are volatile c) markets are inefficient d) interest rates are low and expected to remain low.

  How consumers make decisions whether or not to buy product

pply the categorization model to a product category other than beverages.- How do consumers make decisions whether or not to buy the product, and how do they arrive at their final brand decision?

  How a credit crisis can lead to a full-blown economic crisis

Explain how a credit crisis can lead to a full-blown economic crisis. Explain the similarities between the 1929 Great Crash and the 2008 Credit Crisis. What are the lessons learned from the 2008 Credit Crisis? Please elaborate.

  About the investments plan

You have your choice of 3 investments. Investment A is a 15-year annuity that features end of month $1500 payments and has an interest rate of 5.5% compounded monthly. Investment B is a 5 percent continuously compounded lump sum investment also for 1..

  What is the expected dividend per share

DPS Calculation Warr Corporation just paid a dividend of $1.50 a share (that is, D0 = $1.50). The dividend is expected to grow 7% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the ne..

  Calculate the net advantage to leasing

Rashid Singh, the president of Surf-Side Beer Distributors of Salina, Kansas, has decided that his firm must acquire a new machine that costs $800,000. The firm’s corporate borrowing rate is 12%, The machine can be leased for $110,000 per year for it..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd