Finance Question

[Reidak]

Am I right?

Question:

$20,000 loan on April 30th. No payments required until November 30th, and Buddy plans to make his payment on the first of every month. The loan will accrue interest starting April 30th, at an APR of 6.75%

--- Calculate EAR

(compounded daily)=[(1+0.0675/365)^365]-1
= 6.982358%

a) What is the loan amount on Nov 30th including daily accrued interest?

b) Calculate periodic fixed loan payments for the following structures:
(i) Make payments every week for the next 4 years
(ii) Make payments every two weeks for the next 5 years

c) if buddy pays $220/month, how long will it take to pay off the entire loan?

[SaulPaul]

for the n00bs like me whats EAR? obv google id not helping with this one

[Reidak]

Effective Annual Rate