Loan rates of interest Personal Finance Problem John Flemming has been shopping for a loan to finance thepurchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with thelowest interest rate. The information available with respect to each of the three $9,000 loans is shown in thefollowing table,Each loan requires John to make one payment at the end of each year.a. Determine the interest rate associated with each of the loans.b. Which loan should John take?Data table(Click on the icon hereinto a spreadsheet.)in order to copy the contents of the data table belowLoanPrincipalAnnual paymentTerm (years)A$9,000$3,492.43B$9,000$2,901.35C$9,000$2,136.755345PrintDoneOempts

The problem requires the determination of the interest rates of the loan. The interest rate is the…

Answered: Loan rates of interest Personal Finance…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1MYW

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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?
Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a $17,000 loan given that the lender requires her to make annual end-of-year installment payments of $2,745. a. If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully? b. How long will it take if the interest rate is 9%? c. How long will it take if she has to pay 15% annual interest? d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully.
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Suppose that you decide to borrow $13,000 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 4.8% P. Use PMT = to complete parts (a) through (c) below. - nt 1- a. Find the monthly payments and the total interest for Loan A. The monthly payment for Loan A is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan A is $. (Round to the nearest cent as needed.) b. Find the monthly payments and the total interest for Loan B. The monthly payment for Loan B is $. (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for Loan B is $. (Round to the nearest cent as needed.) MacBook Air

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