Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan Number of Monthly Payments Rate of Interest 12 24 36 48 60 72 84

image text in transcribed
image text in transcribed
Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan Number of Monthly Payments Rate of Interest 12 24 36 48 60 72 84 5 585.61 $43.87 $29.97 $23.03 $18.87 $16.10 $14.13 586.07 $44.32 6 $30.42 $23.49 $19.33 $16.57 $14.61 $86.53 7 $44.77 $30.88 $23.95 $19.80 $17.05 $15.09 586.99 345.23 $24.41 $31.34 8 $20.28 $15.59 $17.53 $24.88 $20.76 $18.03 $16.09 9 $87.45 $45.68 $31.80 $25.36 $32.27 $21.25 $18.53 $16.60 $46.14 10 587.92 $21.74 $17.12 $19.03 $25.85 $88.38 11 $46.61 $17.65 $19.55 $32.74 $33.21 $33.69 $26.33 $47.07 $88.85 12 $22.24 $22.75 $20.07 $18.19 $26.83 $89.32 547.54 $20.61 $23.27 $34.18 $27.33 $48.01 $89.79 $18.74 $19.27 14 $27.83 $34.67 390.26 $48.49 $23.79 $24.32 $21.14 $21.69 15 $19.86 $28.34 $48.96 $90.73 16 $22.25 $20.44 $35.16 $35.65 $36.15 $28.85 $49.44 $91.20 $24.85 $25.39 17 $22.8: $21.02 $49.92 $29.37 591.68 18 $21.61 $23.38 $25.94 $36.66 $92.16 $50.41 $29.90 $30.43 19 $22.22 $23.95 $26.49 $37.16 $50.90 592.63 Answer the following questions using the preceding repayment information table as necessary Cho Cho's loan uses simple interest to compute finance charges. Cho's monthly payment rounded to the nearest cent is $ Eric Eric's loan uses the add-on method to compute finance charges Eric's total finance charge rounded to the nearest cont iss Complete the following tables using all interim figures rounded to the nearest cent in your calculations. Enter all figures as positive numbers rounded to the nearest cent. (Note: The tables are slightly different to reflect the different methods used for finance charges.) Eric - Add-On Principal Finance charge $ Cho - simple Total payments Principal Finance charge S $ $ Total payments $ $ Who paid more for the same loan? O Eric, whose loan used the add-on method to compute finance charges Cho, whose loan used the simple interest method to compute finance charges Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan Number of Monthly Payments Rate of Interest 12 24 36 48 60 72 84 5 585.61 $43.87 $29.97 $23.03 $18.87 $16.10 $14.13 586.07 $44.32 6 $30.42 $23.49 $19.33 $16.57 $14.61 $86.53 7 $44.77 $30.88 $23.95 $19.80 $17.05 $15.09 586.99 345.23 $24.41 $31.34 8 $20.28 $15.59 $17.53 $24.88 $20.76 $18.03 $16.09 9 $87.45 $45.68 $31.80 $25.36 $32.27 $21.25 $18.53 $16.60 $46.14 10 587.92 $21.74 $17.12 $19.03 $25.85 $88.38 11 $46.61 $17.65 $19.55 $32.74 $33.21 $33.69 $26.33 $47.07 $88.85 12 $22.24 $22.75 $20.07 $18.19 $26.83 $89.32 547.54 $20.61 $23.27 $34.18 $27.33 $48.01 $89.79 $18.74 $19.27 14 $27.83 $34.67 390.26 $48.49 $23.79 $24.32 $21.14 $21.69 15 $19.86 $28.34 $48.96 $90.73 16 $22.25 $20.44 $35.16 $35.65 $36.15 $28.85 $49.44 $91.20 $24.85 $25.39 17 $22.8: $21.02 $49.92 $29.37 591.68 18 $21.61 $23.38 $25.94 $36.66 $92.16 $50.41 $29.90 $30.43 19 $22.22 $23.95 $26.49 $37.16 $50.90 592.63 Answer the following questions using the preceding repayment information table as necessary Cho Cho's loan uses simple interest to compute finance charges. Cho's monthly payment rounded to the nearest cent is $ Eric Eric's loan uses the add-on method to compute finance charges Eric's total finance charge rounded to the nearest cont iss Complete the following tables using all interim figures rounded to the nearest cent in your calculations. Enter all figures as positive numbers rounded to the nearest cent. (Note: The tables are slightly different to reflect the different methods used for finance charges.) Eric - Add-On Principal Finance charge $ Cho - simple Total payments Principal Finance charge S $ $ Total payments $ $ Who paid more for the same loan? O Eric, whose loan used the add-on method to compute finance charges Cho, whose loan used the simple interest method to compute finance charges

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

Understanding Futures Markets

Authors: Robert Kolb, James Overdahl

6th Edition

1405134038, 9781405134033

More Books

Students also viewed these Finance questions

Question

What does the elimination process accomplish?

Answered: 1 week ago