Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months with an APR of 5.5%. Assuming he made monthly payments, determine the total interest Blake paid over the life of the loan. Round your answer to the nearest cent, if necessary.

Q: On the day you entered college, you borrowed $30,000 from your local bank. The terms of the loan…

A: The computation of total interest is done as shown:

Q: Sam took a $5000 loan to build a deck in the backyard. The loan requires payments at the end of each…

A: Converting rate of interest from 9% compounded monthly to quarterly   Effective rate of interest =…

Q: Miguel purchased a hot tub costing $5,070 by taking out an installment loan. He made a down payment…

A: Given: Hot tub cost = $5,070 Down payment = $1,300 Finance = 24 months Payments each month = $179.77

Q: ce. She financed the remaining balance for 9 months at an annual interest rate of 5.5% compounded…

A: Answer : Annual interest rate = 5.5% Effective annual interest rate = ((1+5.5%/12)^12-1) Effective…

Q: While buying a new car, Monica made a down payment of $900 and agreed to make month-end payments of…

A: Down payment (D) = $900 Month end payment (m) = $240 Monthly period of repayment (p) = 56 (i.e. 4…

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: evin bought a washer and dryer for $1050 but only had a down payment of $150.00. He financed the…

A: In add on method we simply add interest for given period and add to that with principal amount.

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: Juan purchased a new automobile for $20,000. Juan made a cash down payment of $5,000 and agreed to…

A: The amount of the required monthly payment can be calculated using the financial calculator with…

Q: Jason received a 30 year loan of $290,000 to purchase a house. The interest rate on the loan was…

A: The amount of loan is $290,000 The interest rate is 2.80% Compounded semi-annually The time period…

Q: Jim made a down payment of 2500 dollars toward the purchase of a car. To pay the balance of the…

A: Given information: Down payment is $2,500 Nominal interest rate is 4% compounded monthly Payment of…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance

A:

Q: Dax borrows $500,000 and the loan is governed by compound interest at an annual effective interest…

A: Here, Borrowed Amount $                           500,000.00Annual Effective Interest…

Q: Chiara purchased a new natural gas barbecue for $2,300 and made a down payment that was 30% of the…

A: Purchase price = $2300 Down payment = 30% of Purchase price = 0.30×$2300 = $690 Loan amount =…

Q: Mr. Smith has borrowed $20,000 from the bank to start his small book-keeping business. He has…

A: Using excel RATE function

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Amount of loan = Purchase cost - Down payment = $5,030 - $1300 = $3730

Q: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

A:

Q: Nick received a loan of $5000 from a bank to purchase a bike. He obtained the loan at an interest…

A: Amortization Schedule: The amortization schedule represents a table consisting of periodic loan…

Q: Christina bought a new car for $32,000. She paid a 20%down payment and financed the remaining…

A: Amortization is the process of calculating the equal and regular repayments of a financed amount.…

Q: Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as…

A: Loan:A loan is an amount of money given by one party typically a financial institution to another…

Q: Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded…

A: i) Monthly Payment: Solved using Financial Calculator  PV = - 85,000 I/Y = 3.7/12 = 0.3083333333 N =…

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: Panpan purchased a car. She paid 250,000 as down payment, and 5,500 payable at the beginning of each…

A: Equivalent cash price refers to the equivalent present cost of the car at the time of purchase. It…

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: The formula for the calculation of APR is as follows: APR=Fees+InterestPrincipalTime period×12

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Loans are paid back in fixed periodic payments.   The amount of the periodic payments depends on the…

Q: Chiara purchased a new natural qas barbecue for $2,200 and made a down payment that was 30% of the…

A: Annual interest rate = 5.5%   Effective annual interest rate = ((1+5.5%/12)^12-1)   Effective annual…

Q: Tarell purchased a car for $54,700; he paid 5% of the cost as a down pay the balance amount at 3.4%…

A: Loans are paid by the equal monthly installments and these carry the payment for principal amount…

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: Given: Particulars Amount Cost of hot tub $5,030 Down payment $1,300 Payments $173.77…

Q: While buying a new car, Alexis made a down payment of $1,200 and agreed to make month - end payments…

A:

Q: While buying a new car, Austin made a down payment of $1,000.00 and agreed to make month-end…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Leona Jefferson purchased a home and obtained a 20-year loan of $436,750 at an annual interest rate…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property which itself…

Q: Darla purchased a new car during a special sales promotion by the manufacturer.

A: Interest paid to manufacturer Principal amount (P)=$18,000 Rate of interest (r)=7% per annum Period…

Q: To vacation with his family, Mr. Velasco obtains a loan of $60,000 to be paid in 7 monthly…

A: Let's create an amortization table for Mr. Velasco's loan. Here are the details:Loan amount:…

Q: Elin purchased a used car for $10,500. She wrote a check for $2,500 as a down payment for the car…

A: The long-term loan that was obtained from the lender is being repaid in monthly mortgage…

Q: Michelle bought a new car for $⁢34,000. She paid a 20% down payment and financed the remaining…

A: A loan refers to a contract between two parties where an amount is forwarded by one party to the…

Q: While buying a new car, Mitchell made a down payment of $1,000 and agreed to make month-end payments…

A: Compound = Monthly = 12Down Payment = dp = $1000Payment = p = $240Time = t = (4 * 12) + 9 = 48 + 9 =…

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.