APR of Loan
When you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, then what is the APR of loan?
Expert
Let ROI is 12%Monthly int rate is 1%pm(1+1/100)^48 = 37.9737.97*225=8543Loan amt is 8000 and amt paid is 8543Therefore int paid is 543Now i don’t know exactly but it may be like this543/8000*12/48*100=.17%
ABC Corp is issuing a 10-year bond with a coupon rate of 7 %. The interest rate for similar bonds is at present 9 %. Supposing annual payments, what is the current value of the bond? (Round to the closest dollar.) (a) $872 (b) $1,066 (c) $990 (d) $945. Q : Problem on Bond Price Kevin is Kevin is interested in buying a 5-year bond which pays a coupon of 10 % on a semi-annual basis. The present market rate for similar bonds is 8.8 %. What must be the present price of this bond? (Round to the closest dollar.) (a) $1,048 (b) $965 (c) $1,099&n
Kevin is interested in buying a 5-year bond which pays a coupon of 10 % on a semi-annual basis. The present market rate for similar bonds is 8.8 %. What must be the present price of this bond? (Round to the closest dollar.) (a) $1,048 (b) $965 (c) $1,099&n
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