60.1K

Verified Solution

Link Copied!

please provide formulas with answer

1. The simple interest on a 45-day loan of $5,200 is $55.25. What is the simple interest APR?

2. You borrowed $10,000 from your bank at 5.6% simple interest APR. You took out the loan on March 1 and plan on repaying it on August 1. What is the interest and maturity value of the loan?

3. Franz is planning to borrow $182,000 from Columbia River Bank to build a road into his property. The road building (and loan) will commence on March 17^th and the road will be completed on April 27^th. At that time the property will be sold and the loan repaid to the bank (April 27^th). Terms for the loan are simple interest at 2 (percentage) points over prime plus a 1.5% loan fee (the loan fee is added to the $ amount being borrowed). The Bank's prime rate is 8.75% APR. What is the maturity value?

4. Bill is borrowing $150 from a pawnshop by giving the pawnshop a guitar worth $500. The pawnshop says she can repay the $150 plus 10% interest ($150 x 10 % = $15) in 30 days to redeem the guitar; if he does not repay the loan in 30 days, the pawn shop will sell his guitar. Help bill calculate the APR. (use 365 days)

5. Lee is purchasing ski clothing from a supplier for $2,450. The seller offers a 4% discount if the invoice is paid within 10 days; if not paid within 10 days, the full amount must be paid within 30 days of the invoice date (4/10,n/30). Find the Annual Effective Rate. (use 365 days)

Answer & Explanation Solved by verified expert

See Answer