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If the interest rate is 1.2% per month, what is the APR?
2) Which is better if you’re taking a car loan, 3% APR, or 2.5% APR with daily compounding?
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- You are looking to buy a car and you have been offered a loan with an APR of 6.4%, compounded monthly. a. What is the true monthly rate of interest? b. What is the EAR?Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 5% now and increases to 9% in the next year. What is the present value of the payments?1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)
- You are looking to buy a car and you have been offered a loan with an APR of 7.2%, compounded monthly. What is the true monthly rate of interest?Suppose that you decide to borrow 16000 for a new car. You can select one of the following loans each requiring regular monthly payments. Installment loan A three-year loan at 6.3% Installment loan B five -year loan at 6.4% What would be the monthly payments for each loan and total interest for them also? How much will the buyer save in interest?I need help with answering question B: A car loan offered by Bank One requires quarterly payments and has an APR of 4.8 percent, whereas a the same loan amount may be obtained from Bank Two at an APR of 5 percent with monthly payments. Which loan would you choose and why?
- Using the average interest rate for a federal loan of 2.75% AND the average interest rate for a private loan of 5.8%, calculate how long it'll take you to pay off both federal and private loan using the total cost from part 2. What would your monthly loan payments be (have realistic monthly loan payments as you would have other expenses)?(Use Formula Approach or Calculator Approach) Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan?suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans, each requiring regular monthly payments. Installment loan A: 3-year loan at 5.9% Installment loan B: 5-year loan at 6.4% a.- find the monthly payments and the total interest for loan A b.-find the monthly payments and the total interest for loan B c.- compare the two loans. which is more economical?
- Suppose you are given two loan options. The first one allows you to borrow money at 8.6% per year, compounded semi-annually. The other option allows you to borrow at 8.4% per year but compounded monthly. Calculate & explain which option is better from the borrower’s point of view. What is your conclusion from the answers ?Your bank offers you a car loan with an interest rate of 6%. You expect inflation to be 2%. What is the real interest rate on this loan?2. If you receive $249 each quarter for 4 quarters and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)