What is the annual percentage rate on a loan with a stated rate of 2.25 percent per quarter?
I think is 9% right?
I think is 9% right?
sheldonlinker
Favorite Answer
If simple interest, you are correct. If compound interest:
100((1+2.25/100)⁴-1)
100((1+0.0225)⁴-1)
100(1.0225⁴-1)
100(1.0225⁴-1)
~100(1.09308331878906-1)
~100·0.09308331878906
~9.308331878906
~9.308%
The ·100 and /100 change numbers to and from %
The +1 and -1 change numbers to and from multipliers
?
a. you go with 250,000, so which you're able to desire to borrow 250,000 / ninety%, or 277,778 at 10%. In 6 months, pastime due would be 5%, or 13,889 on usuable funds of 250,000, or 5.6%, an annual fee of 11.a million%. b. Borrow 266,667. it continues to be an powerful annual fee of 11.a million%. (10% of 266,667 to apply 240,000) c. Borrow 244,444. pastime for 12 mos of 24,444 / 220,000 = 11.a million%
?
=(1.0225)^4 = 1.0930833 which is 9.308% APR