Assume the following information for a car note: Original loan amount = $23,500 Annual interest rate = 7.25% Term of loan = 24 months What is the principal balance on the loan after six months?

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan pay-off: It means paying the remaining loan balance in just one payment.

Q: What are the interest cost and the total amount due on a six-month loan of $2,100 at 13.5 percent…

A: Simple annual interest cost is the net amount of interest that is being charged on the principal…

Q: If the finance charge on a loan made by Marjorie Young is $1,950 and the loan is to be paid in 24…

A: A loan amount represents the amount borrowed at a fixed interest rate to be repaid over a fixed…

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: A car loan for $19,500 has an interest rate of 4.25% and is amortized over 60 months.  What is the…

A: Monthly payment of loans is popularly also known as EMI ( Equated Monthly Installments) which is a…

Q: A car is purchased with a 48-month, 9% nominal loan with an initial balance of $15,000. What is the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume…

A: Loan repayment refers to reducing the liability of borrower by making payments to lender as agreed…

Q: For the car loan described, give the following information. A car dealer will sell you a used car…

A: Note: As per Bartleby guidelines,If a question with multiple sub-parts are posted,  first 3…

Q: The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given…

A: Interest rate = 10.5% Initial balance = $150  Number of days = 1-3 is 3 days Number of days = 4-20…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume…

A: The principal amount is the amount of loan that you owe, whereas the interest amount is what the…

Q: What is the total interest paid on a loan of $5,000 at APR = 10% for one year.

A: Loan amount = $5000 Interest rate = 10% Period = 1 year

Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.

A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year

Q: FIND THE SIMPLE INTEREST ON A 30,000 LOAN AT 17% INTEREST FOR FOUR MONTHS.

A: Interest = principal x rate of interest x no. of months/12

Q: A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using…

A: Interest Amount = Principal * Rate * Time

Q: A car loan of $28,641.62 is to be repaid with end-of-month payments of $582.15. If interest is 4%…

A: The number of months can be calculated with the help of NPER function of Excel.

Q: . You have a line of credit loan with Scotiabank. The initial loan balance was $6000.00. Payments of…

A: Line of credit can be determined as the predetermined credit limit. Any amount within the credit…

Q: For the following loan, make a table showing the amount of each monthly payment that goes toward…

A: The value of new principal considers both the interest amount and the principal amount repaid and…

Q: Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A payday loan company charges a $85 fee for a $500 payday loan that will be repaid in 14 days.…

A: Payday loan is a type of short term borrowing. This loan is based on the income of the borrower and…

Q: Find the amount of interest (in $) on a loan of $4,000, at 5% interest, for 70 days using the exact…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: A payday loan is made for six weeks, where the amount of the interest owed per $100 borrowed is $20.…

A: Payday loan: This is a short-term borrowing method where a high interest is charged to the borrower…

Q: For the car loan described, give the following information. A car dealer will sell you a used car…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…

A: In the question it is given that the cost of the loan is $1.00 per day per $100 borrowed until the…

Q: A loan shark made a loan of 5,000 to be repaid with 5,500 dollars at the end of the two months. What…

A: Simple interest = Principal * Interest rate percentage * period   Given: Loan value = 5000 Amount to…

Q: Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per…

A: Simple interest is the simple and easy interest that is charged on a loan. It is calculated by…

Q: Suppose you take out an auto loan for $25,500 over a period of six years at an APR of 7.5%.…

A: The annual percentage rate refers to the yearly rate of interest paid for a loan or received from an…

Q: The maturity value of a three-month loan of 2,500 dollars is 2,577 dollars. Find the simple annual…

A: Simple interest dose not take compounding into consideration.

Q: PLEASE DO THE FOLLOWING ON AN EXCEL SPREADSHEET: Consider a loan of $1,000,000 with the nominal…

A: Given information : Loan amount $1,000,000 Annual interest rate 10% Time period (years) 15…

Q: What is the total interest paid on a loan of $5,000 at APR = 6% for one year.

A: Loan amount = $5000 Interest rate = 6% Period = 1 Year

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses   Date No of days Balance…

Q: Calculate the daily and annual rate on interest charged on a payday loan of $400 if the interest c…

A: Payday loans are small period loans on which interest is charged as lump sump amount on the original…

Q: Find the interest on a used car loan of $5000 at a rate of 16% for a period of 8 months.

A: Interest rate = 16% Loan amount = $ 5000 Period = 8 months Interest on loan = Loan amount * Interest…

Q: For an auto loan of $25,600 @ 3.5 APR due in five (5) years, a) what is the total interest paid, and…

A: Loan = 25,600 APR = 3.5% N = 60 months (5 years) Interest Rate = APR/12 = 3.5%/12 per month

Q: Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 an…

A: Annual interest rate = 4.29% Monthly interest rate = 4.29%/12 = 0.3575% Loan = $500,000 Time = 30*12…

Q: Calculate and print out the balance due, principal payment, and interest payment for each period of…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: Find the interest paid on a loan of $2,600 for three years at a simple interest rate of 10% per…

A: Formula: Interest amount = Principal amount x Time period x Rate of interest.

Q: What are the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent…

A: Payment on maturity of loan = Amount of loan + Interest cost Interest cost (Simple annual interest)…

Q: The balance on a credit card, that charges a 12% APR interest rate, over a 1 month period is given…

A: A credit card refers to a facility provided by banks to its customers that customers can make the…

Q: The total amount paid on a GSIS loan is ₱41,500. If the loan was paid within 30 months at 6 ¼ %…

A: Given Information: Total amount of Loan Paid(A) = ₱41,500 Time Period = 30 months Simple Interest(r)…

Q: A car loan of ​$37,412.98 is to be repaid with​ end-of-month payments of ​$725.06. If interest is…

A: Loan amount (PV) = $37,412.98 Monthly payment (P) = $725.06 Interest rate = 5% Monthly interest rate…

Q: Calculate and print out the balance due, principal payment, and interest payment for each period of…

A: Installment is the amount of periodic payments a borrower has to pay to its lender in por5der to…

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.