Suppose that you decide to buy a car for ​$23,635​, including taxes and license fees. You saved $5000 for a down payment and can get a three​-year car loan at 5.37​%. Use PMT=Prn1−1+rn−nt to find the monthly payment and the total interest for the loan.  Round to the nearest cent as​ needed.

Q: The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of…

A: The price of a bond is equal to the sum of the present value of the coupon payments and the face…

Q: (3) 11.015229%

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Q: how did you get .88496 in year 1? I input 1/1(1+13)^1 into excel and got a different answer.

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Q: Blackstone Energy is planning to issue two types of 25-year, non-callable bonds to raise a total of…

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Q: Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a share. You have received…

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Q: You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal…

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Q: Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are…

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A:

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Q: Suppose we observe the following rates: 1R₁ = 0.80%, 1R₂ = 1.25%, and E(271) = 0.941%. If the…

A: Variables in the question: 1R1=0.80% =0.0081R2=1.25% =0.0125E(2r1)=0.941% =0.00941

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.