Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For a 4 - year loan of $ 6 0 , 0 0 0 with an interest rate of 1 0 . 8 0 %

For a 4-year loan of $60,000 with an interest rate of 10.80% compounded monthly,
What is your monthly payment?
What is the effective annual interest rate?
What is the effective monthly interest rate?
If I dont make any payment for two years (assuming no penalties) and pay off the entire loan at the end of the second year, what amount do I need to pay?
What is the economic equivalent value of $60,000 at this interest rate in 11 months
Please only put the numerical value into the answer box. For 1,4,5 round up your answer to the nearest integer. For 2 and 3, please only put the numerical value of the percentage in 2 decimal points.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions