+1-415-670-9189
info@expertsmind.com
What rate would legally have to quoted-effective annual rate
Course:- Financial Management
Reference No.:- EM13891873




Assignment Help
Assignment Help >> Financial Management

A local finance company quotes an interest rate of 18.7 percent on one-year loans. So, if you borrow $42,000, the interest for the year will be $7,854. Because you must repay a total of $49,854 in one year, the finance company requires you to pay $49,854/12, or $4,154.50 per month over the next 12 months.

What rate would legally have to be quoted? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

What is the effective annual rate? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
If a private good is publicly provided at a zero price, it A. Becomes a public good because everyone can consume as much as desired and no one is excluded. B. Will be over con
Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.2%. What is the duration if the yield to
Managerial positions execute strategies and best practices on the job in an effort to ensure the annual auditor's report is unqualified. identify the elements in an auditor's
Explore and discuss how dividend payments are accounted for; what signal(s) does the payment of dividends send to the investment community; and how the payment of dividends ad
Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hit, the firm expects to be able to sell 58,000 units a year at a price of $7
Danny Developer seeks secondary financing, a $750,000 mortgage, term 25 years, interest rate is 13.5% and payments include principal and interest with level monthly payments. 
What are temporary differences? What gives rise to temporary differences? Some accountants believe that deferred taxes should be recognized only for some temporary differences
Great Seneca Inc. sells $100 million worth of 28-year to maturity 12.46% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $979 for each $1,000 bond.