What is the actual rate you are paying on loan

Assignment Help Financial Management

Reference no: EM131297952

You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus 5 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are very common with home mortgages. The interest rate quotation in this example requires the borrower to pay 5 points to the lender up front and repay the loan later with 10 percent interest. What is the actual rate you are paying on this loan? Answer must be in excel.

Reference no: EM131297952

Questions Cloud

Write abstract about hbv genotyping : Need to write abstract about 500 words about, HBV GENOTYPING and pcr - Introduction about HBV genotyping, need to expand it write it with changes and add more info from journals. And correct some grammar mistakes.

Sketch a market demand curve and the firm''s cost curves : If Hawaii Cable is subject to a price cap regulation that enables it to break even, show in your graph the price, quantity, economic profit, consumer surplus, and deadweight loss.

What mode of transportation should be considered : What mode of transportation should be considered by an orchid grower in Hawaii who sends orchids to retail stores in other states? Why?

What barriers to entry exist in the cable television market : The FCC will also limit the market share of a cable company to 30 percent.

What is the actual rate you are paying on loan : You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus 5 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are very common with home mortgages. T..

What is the relationship between production and distribution : What is the relationship between production and distribution in reaching the ultimate consumer?- In the United States, the distribution network is well organized.

What does the outcome say about your county : What does the outcome say about your county? Did your county turnout support or not support your political culture hypothesis? Why or why not? Where you surprised by the support or rejection of a measures? Why?

Reforming the us system of collective bargaining : Reforming the U.S. system of collective bargaining Collective bargaining procedures and relationships between labor and management must reflect less conflict, more cooperation as the Nation's economy struggles to meet international competition and..

Draw a graph to illustrate effects of fcc''s new regulation : FCC planning rules to open cable market The Federal Communications Commission (FCC) will make it easier for independent programmers and rival video services to lease access to cable channels. The FCC will also limit the market share of a cable com..

User Account

All Pages