Charles has just taken on the conditions of the loan, he must make payments of $1,200 per year for 15 years in order to repay the full amount of the loan. How much money did Charles borrow? $8,173.04

Q: Amy received a 25 year loan of $325,000 to purchase a house. The interest rate on the loan was 2.20%…

A: Given, The loan amount is $325,000 Term of loan is 25 years Interest rate is 2.2% compounded semi…

Q: Nate bought a home for $143,000 with a down payment of $15,000. Nate's rate of interest is 6.75% for…

A: When we buy a large ticket item like a home we usually take loan for that. The loan is repaid…

Q: Starting today, Barbie and Ken each make deposits at the end of every year for 15 years. Barbie…

A: Since the accumulated amount will be the same for both B and K then the PMT will be similar as both…

Q: Daniel paid $825 simple interest on a $1400 loan for five years . What was the interest rate?

A: Given: Simple Interest =$825Principal amount =$1400Time =5 years

Q: Tom borrowed $80,000 at a rate of 6.5% from bank for his new house. This is a 30 year monthly paid…

A: Given, Tom borrowed = $80,000 Rate= 6.5% Time period= 30 year

Q: Sally borrows $25,000 for a loan, and she repays the loan by making quarterly end-of-quarter…

A: The principal amount is $25,000.The quarter payment is $650.The maturity of the loan is 15

Q: Henry takes out a $650 discounted loan with a simple interest rate of 12% for a period of 7 months.…

A: A discounted loan is a loan where the borrower has to pay the face value at maturity and receives…

Q: Mr. and Mrs. Jones have taken out a mortgage loan of $195,000.00 from a bank at 5.5% APR for a fixed…

A: Formula to calculate monthly payments PMT=PV x i x (1+r)n(1+r)n-1 Where, PMT = Monthly payment n =…

Q: Rachael invests $8000 for 7 years and 8 months. The account earns 12% semiannually. A) What is n…

A: Future value of present sum depends on whether it is simple interest or compounded…

Q: Dan buys a property for $280,000. He is offered a 25-year loan by the bank, at an interest rate of…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was…

A: Mortgage loans are paid by equal periodic and fixed payments and these carry the payment of interest…

Q: José borrowed 8100 at 5 1/2% for  three years compounded, semi am annually. What is the future…

A: Future value is the value of an investment or cash flow at a future point in time, based on the…

Q: Mr. and Mrs. Smith have taken out a mortgage loan of $250,000.00 from a bank at 6% APR for a fixed…

A: The mortgage loans are secured loans and they are the main source of finance in the real estate and…

Q: Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both…

A: Simple interest does not involve compounding and no interest on interest is considered.

Q: Akbar bought a car on loan and pays the simple interest at 5% amounting to RO 3,000 per annum for 5…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Edward deposits P 100,000 in a savings account that pays 13% interest converted semiannually. How…

A: Nper refers to the number of periods or years which is required to clear the amount of loan at the…

Q: Christopher just borrowed $19,500.00 to buy a used minivan. The terms of the loan require him to…

A: Amount borrowed, pv $ 19,500.00Equal monthly payments, pmt $       340.10Period (years), nper6Extra…

Q: Edward borrowed an amount to his friend and promised to pay the principal amount and accumulated…

A: Let the amount borrowed be "x" Simple rate = 15.118% Amount paid at the end of 3 years = P15.855.…

Q: Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not…

A: Compound interest can be defined as the addition of interest to the principal balance. It can be…

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

Q: Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay…

A: Borrowed amount = $10,000Interest rate for first 2 years = 4%Interest rate for next 5 years = 3%To…

Q: Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both…

A: We have to consider present value and future value of both.

Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…

A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

Q: ohn has just borrowed an amount of K5,000 to pay his school fees. The loan is to be repaid in equal…

A: Loans are paid by the annual payment that carry the payment of loan and payment of interest also but…

Q: Rapi Tulpo invests Php1,000 in a Bank that doubles his money in five years. To what annual interest…

A: Investment means an asset(financial assets or fixed assets) that is purchased to generate additional…

Q: Milo borrows $5.000 from an institution that charges 8.5% interest per year. How much more will Milo…

A: Loan are amount borrowed from the financial institution and is the amount charged above the loan is…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

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: The number of years over which she can repay the loan amount can be calculated using the NPER…

Q: will owe $6,050 to repay a personal loan she took out to go on vacation. The loan was for a term of…

A: In simple interest there is no interest on the interest and there is interest on the principal…

Q: PART B.) George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) many…

A: Any sum borrowed to meet specific personal or business funding needs is recognized as a…

Q: Freddy agreed to make quarterly payments of $781.25 for 4 years on a loan of $10,000. What simple…

A: Simple interest refers to the method of calculating the interest earned where the principal amount…

Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of the loan…

A: in this we have to find effective interest rate and than find out present value FACTOR.

Q: John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year…

A: Computation:

Q: Mr. and Mrs. Smith have taken out a mortgage loan of $150,000.00 from a bank at 6% APR for a fixed…

A: The monthly payment can be calculated with the help of present value of annuity function

Q: Jane Doe earns $41,400 per year and has applied for a(n) $89,000, 25-year mortgage at 7 percent…

A: Amount available for mortgage payment= Debt Service Ratio * Monthly income -  Monthly Property taxes

Q: Benito borrowed $800 two years ago. The interest rate on the loan was 5% compounded monthly for the…

A: Borrowed Amount is $100 Borrowed two years ago Interest Rate is 5% compounded monthly for first 8…

Q: John borrowed a certain amount of money from Tebogo at a simple interest rate of 8,7% per year.…

A: Simple interest is defined as an easy procedure or method regarding the calculation or computation…

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.