80.2K

Verified Solution

Link Copied!

81. Your uncle will sell you his bicycle shop for $110,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?

Group of answer choices $1,277.51 $1,659.10 $1,460.01 $1,775.24 $1,509.78

77. Pace Co. borrowed $7,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Pace have to pay in a 30-day month?

74. Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $220.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan?

Group of answer choices

9.09%

7.00%

7.73%

6.91%

10.10%

Group of answer choices

$35.52

$41.87

$42.29

$44.83

$43.98

72. Riverside Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.6%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside?

Group of answer choices

0.87%

0.77%

0.90%

0.94%

1.01%

71. Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 23.75%, with interest paid monthly, what is the card's EFF%?

Group of answer choices

26.51%

29.96%

31.55%

25.72%

21.21%

Answer & Explanation Solved by verified expert

See Answer