{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch.5 Practice - the loan 3 Ricky Rip-off’s Pawn Shop...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 3100 Chapter 5 Practice Dr. Lucy Ackert 1. You own an asset that had a total nominal return last year of 13 percent. If the inflation rate was 4.1 percent, what was your real return? 2. Prepare an amortization table for a three-year loan of $75,000. The interest rate is 9% per year and the terms of the loan call for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the loan? 3. Ricky Rip-off’s Pawn Shop charges a rate of 20% per month. What is the APR? What is the EAR? 4. What is the EAR for a 9% loan when interest is compounded quarterly? 5. What is the APR of a loan that has an EAR of 16% when interest is compounded daily?...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern