Loan a is repaid monthly while the loan b is repaid


1. Two loans have an 8% APR. Loan A is repaid monthly while the Loan B is repaid quarterly. Calculate the Effective Interest Rate of the two loans.

2. You have a $ 6,000 loan to be repaid in 5 years (annual payments) at a 7% interest rate. Create an amortization schedule for a fully amortized loan with constant-payment installments.

3. If the inflation rate is 3% and the real interest rate is 4%. Calculate the PV of annual payments of $5,000 for three years, using the exact actual discount rate.

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Financial Management: Loan a is repaid monthly while the loan b is repaid
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