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you have just borrowed $100,000 to buy a condo. you will repay the loan in equal monthly payments of $804.62 over the next 30 years. what monthly interest rate are you paying on the loan? note: do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places. what is the apr? note: do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places. what is the effective annual rate on that loan? note: do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places. what rate is the lender more likely to quote on the loan?

Respuesta :

tutorconsortium344

A) The month rate is

[tex]\frac{804.62}{(1+R)^{t} } =100000, which yields R = 0.75\%[/tex]

The annual percentage rate = 0.75%[tex]\times[/tex]12 = 9%

B) The effective annual rate =

[tex]=(1+0.75 \%)^{12}-1=9.38 \%[/tex]

C)The lender is more likely to report the loan's annual percentage rate, which is 9%.

Interest rate

The interest rate is the amount charged by the lender to the borrower in addition to the principal amount. In terms of the receiver, a person who deposits money in any bank or financial institution gains extra money due to the time value of money, which is referred to as interest received by the depositor.

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