After graduating with a masters degree, Gwen combined all of her student loans into a single loan of $21,000 with an interest rate of 5.2% compounded quarterly. If she is planning to pay off the loan in 11 years what will her quarterly payment be?

Q: the monthly payments? $ 852.09 heir loan balance right after they have made the

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Q: Luis is expected to settle a loan by paying $5,500. What amount should she pay if she decides to…

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Q: Calculate the total interest earned on the investment.

A: Information Provided: Quarterly Deposit = $344 1-year rate = 2.05% compounded quarterly Period of…

Q: Martha Diaz needs an investment loan. She gets a simple interest amortized loan for $12,000 at 8.5 %…

A: Interest is the cost of borrowing the money.

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Q: Alex estimates that he will have $47,500 in student loans by the time he graduates. The interest…

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Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: PV(loan amount) = 150,000I/Y (interest rate) = 7%PMT (periodic payment) = 25,000

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Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

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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.