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What rate would legally have to be quoted

Calculating EAR - A local finance company quotes a 15 percent interest rate on one-year loans. So, if you borrow $26,000, the interest for the year will be $3,900. Because you must repay a total of $29,900 in one year, the finance company requires you to pay $29,900/12, or $2,491.67, per month over the next 12 months. Is this a 15 percent loan? What rate would legally have to be quoted? What is the effective annual rate?

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Q : What rate would legally have to be quoted

The finance company requires you to pay $29,900/12, or $2,491.67, per month over the next 12 months. Is this a 15 percent loan? What rate would legally have to be quoted? What is the effective annual rate?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate would legally have to be quoted

Reference No:- TGS0679536

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How much do you need to have in your bank account

Q : Find the project payback period if the initial cost is given

Q : The business of injection molding of plastics

Q : Buffalo snow shoe company-expected net present value

Q : What rate would legally have to be quoted

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Q : What should tom conclude from these computations

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate would legally have to be quoted

Reference No:- TGS0679536

Recent Questions Asked Finance Basics

Q : How much do you need to have in your bank account

Q : Find the project payback period if the initial cost is given

Q : The business of injection molding of plastics

Q : Buffalo snow shoe company-expected net present value

Q : What rate would legally have to be quoted

Q : What is the amount of interest paid in february

Q : What should tom conclude from these computations

Q : Bond yield to maturity-intercontinental baseball manufacture

Q : What is forecast of free cash flows for given year

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