« previous next »

Author Question: If you borrow 50,000 at an annual interest rate of 12 for six years, what is the annual payment ... (Read 202 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
on: Jul 10, 2018
If you borrow 50,000 at an annual interest rate of 12 for six years, what is the annual payment (prior to maturity) on a discount loan?
 
  A) 0.00
  B) 6,000.00
  C) 8,333.33
  D) 12,161.29

Question 2

If you borrow 100,000 at an annual rate of 8.00 for a 10-year period and repay the total amount of principal and interest due of 215,892.50 at the end of 10 years, what type of loan did you have?
 
  A) Amortized loan
  B) Interest-only loan
  C) Discount loan
  D) Compound loan


elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) Discount loans pay in full at maturity.

Answer to Question 2

Answer: C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
“Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi “Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ... Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ...
The rate of global emissions is rising rapidly, especially in India and China The rate of global emissions is rising rapidly, especially in India and China
Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ... Nancy borrowed $8000 from her grandfather to buy a car when she started college. The interest ...
Video: What are Taste Receptors? How Does it Work? Animation

For a complete list of videos, visit our video library