Effective rate of interest on installment loan

Related BrainMass Solutions

• Effective Rate of Interest: Simple, Discounted, Installment, Compensating Balance

  The interest is paid upfront so effective money received = $5.0-0.7 =4.3 million Effective interest rate = 0.7/4.3=0.1628=16.28% c. An installment loan (12 payments).

• The Dade Company is borrowing $300,000 for one year and payi

  Waht is the effective rate of interest? What would be the effective rate if the company were required to make 12 monthly payments to retire the loan?

• Effective rate under different terms

  Under installment loan, the effective interest is calculated as Effective rate = (2Xannual number of payments X interest)/((total number of payments +1)X Principal) (2Xannual payments X interest) = 2X12X700,000 = 16,800,000 (total number of payments

• Midland Chemical Co: Compensating Balances, Cash Discount and Hedging

  On an installment loan, the effective rate is calculated as Effective rate = (2Xannual number of payments X interest)/((total number of payments +1)X Principal) (2Xannual payments X interest) = 2X12X41,250 = 990,000 (total number of payments+1)X principal

• interest rate, bond

  What is the effective interest rate on this loan? b. If you call the discount d (for example, d=10% using our numbers) express the effective annual rate on the loan as a function of d C.

• Calculate effective rate of interest and total interest cost

  The total interest is $9,000. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this installment loan? Please see the attached file.

• Interest, Annuity, Installment loan, Mortgage

  Installment loan. What is an example of an installment loan? What type of installment loan does not require the borrower to pay off the balance? An example of an installment loan is a mortgage or a student loan.

• Newell Manufacturing:

  Verify that the imputed interest rate on the installment loan is 10%. That is, show that the present value of the payments Newell must make is $6,340 (rounded to be the nearest dollar) when discounted at a 10% rate of interest. 2.)

• Midland Chemical Co.

  In either case the rate on the loan is floating (changes as the prime interest rate changes), and the loan would be for one year. a. Which loan carries the lower effective rate? Consider fees to be the equivalent of other interest. b.