Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 1 Day Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 21 Sep 2017 My Price 7.00

Crazy Judy’s Stereo City

65.        Calculating EAR with Add-On Interest   This problem illustrates a deceptive way of quoting interest rates called add-on interest. Imagine that you see an advertisement for Crazy Judy’s Stereo City that reads something like  this: “$1,000 Instant Credit! 17% Simple Interest! Three Years to Pay!   Low,  Low Monthly Payments!” You’re not exactly sure what all this means and some- body has spilled ink over the APR on the loan contract, so you ask the manager for clarification.

 

 

 

 

 

Judy explains that if you borrow $1,000 for three years at 17 percent interest, in three years you will owe:

$1,000 3 1.173 5 $1,000 3 1.60161 5 $1,601.61

Now, Judy recognizes that coming up with $1,601.61 all at once might be a strain, so she lets you make “low, low monthly payments” of $1,601.61y36 5 $44.49 per month, even though this is extra bookkeeping work for her.

Is this a 17 percent loan? Why or why not? What is the APR on this loan? What is the EAR? Why do you think this is called add-on interest?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Sep 2017 08:09 PM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)