What rate would legally have to be quoted

Assignment Help Financial Management

Reference no: EM131459426

A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months.

What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

APR ? %

What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131459426

Questions Cloud

Determine the approach that would carry the smaller risk : Determine the approach that would carry the smaller risk and the approach that would carry the bigger risk. Provide a rationale for your response.

Why is it important for these two religious traditions : What are some key difficulties/challenges that remain when these 2 traditions find ways to come together? How might we face those challenges?

What is expected rate of return on your portfolio : Using the information in question 1, according to CAPM, what is the expected rate of return on your portfolio?

Identify a total of three ethical issues : Please identify a total of three ethical issues that face Walmart and Apple and develop 2 approaches for addressing each of these three issues.

What rate would legally have to be quoted : A local finance company quotes an interest rate of 19.9 percent on one-year loans. What rate would legally have to be quoted?

Why is internal marketing important to a firm : Why is internal marketing important to a firm? Internal marketing enables all members of the organization to understand, accept, and fulfill their respective.

Identify the three levels of the marketing relationship : Identify the three levels of the marketing relationship. The three levels of the relationship marketing continuum are focus on price.

Which alternative is likely to have more risk : Do you think that either the acquisition of foreign firm or licensing will result in greater growth for an MNC? Which alternative is likely to have more risk?

How is customer satisfaction measured : How is customer satisfaction measured? Marketers monitor customer satisfaction through various marketing research methods.

User Account

All Pages