What is the effective annual rate on the loan

Assignment Help Financial Management
Reference no: EM131068912

You’ve borrowed $3,122.85 and agreed to pay back the loan with monthly payments of $170. Assume the interest rate is 15% stated as an APR.

a. How long will it take you to pay back the loan? (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? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate %

Reference no: EM131068912

Questions Cloud

What is the expected return on equally weighted portfolio : What is the expected return on an equally weighted portfolio of these three stocks?
Different theories explaining trade flows between nations : There are many reasons why nations trade with each other and many different theories explaining trade flows between nations. Many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that par..
What benefit derive from implementing good accounting system : What benefits he (his company) will derive from implementing a good accounting system, and A general overview of the "mechanics" of the accounting process.
How many staff would be required to set up the dining area : Your restaurant has accepted a booking of 50 people for a wedding reception. The reception guests are due to begin arriving at 7.00 pm. How many staff would be required to set up the dining area
What is the effective annual rate on the loan : You’ve borrowed $3,122.85 and agreed to pay back the loan with monthly payments of $170. Assume the interest rate is 15% stated as an APR. How long will it take you to pay back the loan? What is the effective annual rate on the loan?
Create and possess a people redeeming them : The Wall of Isolation - This wall described as one pushing others away intentionally to protect oneself from being hurt in some way (physically, emotionally, economically, etc.). Examining my life I see bits of this in my own experience, however, ..
Percentage change in spot rates : Collect quarterly inflation data for U.S. and UK for the last five years (2011 - 2015). Collect quarterly spot exchange rates of British Pound ($/£). Calculate the inflation differentials between U.S. and UK, and the percentage change in spot rates. ..
Assume that the returns from asset are normally distributed : Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.2 percent and the standard deviation of those returns in this period was 43.92 percent. What is the approximate pro..
Influence of the daubert standard on the written report : Using your textbook and the Argosy University online library resources, discuss how you would write (in about 350 words) and present a risk assessment to the parole board, considering the following: The influence of the Daubert Standard on the writ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the percentage change in price of bond

Both bond A and bond B have 7.8 percent coupons and are priced at par value. Bond A has 9 years to maturity, while bond B has 16 years to maturity. a. If interest rates suddenly rise by 2.2 percent, what is the percentage change in price of bond A an..

  Initial cash flow of the project for this building

Grant Farms purchased a building for $689,000 eight years ago. Six years ago, repairs were made to the building which cost $135,000. The annual taxes on the property are $11,000. The building is totally paid for and solely owned by the firm. If the c..

  Change in the importance of residential loans

What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending - Explain the difference between bank credit risk and bank capital risk?

  From the perspective of information asymmetry

From the perspective of information asymmetry, what are the implications to investors when the management of a company announces a new equity issue?

  Net interest income and relative asset prices

The portfolio managers of a firm determined that over the next year interest-sensitive assets are in the amount of $1.5 billion while interest-sensitive liabilities are in the amount of $1.8 billion. Calculate GAP and Duration GAP (DGAP) for this sit..

  Determine operational expenditures

Compute the unit sales price at which Blake must sell its product in the current year in order to earn a budgeted target profit of £200,000.

  Debt-total asset ratios-greater return on equity

Erik, Inc. and James, Inc. have debt-total asset ratios of 60 percent and 40 percent and returns on total assets of 20 percent and 30 percent, respectively.  Erik has a greater return on equity?explain your reason.

  Discount rate should you use to evaluate warehouse project

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project?

  What is the current bond price-pv method

Sqeekers Co. issued 14-year bonds a year ago at a coupon rate of 7.4 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.7 percent, what is the current bond price? I need to also figure out how t..

  What is the portfolio beta

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 50 percent in Stock T. The betas for these four stocks are 1.46, 1.44, 1.28, and 1.66, respectively. What is the portfolio beta?

  What are the key market segmentation variables

Identify any consumer product or service that you'd like, and explain who the target market is (or should be) for it. What are the key market segmentation variables (age, gender, educational level, geographic location, etc.) in defining the target ma..

  Growth rate is expected to equal the industry average

Pettway Corporation’s next annual dividend is expected to be $4. The growth rate in dividends over the following three years is forecasted at 15%. After that, Pettway’s growth rate is expected to equal the industry average of 5%. If the required retu..

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