Debt payments of $2,450 and $1,900 are due in five months and ten months, respectively. What single payment is required to settle both debts in one month? Assume a simple interest rate of 7.50% p.a. and use one month from now as the focal date.

Q: a. The OP at the end of 3 years. b. OP after the 45th payment. c. Estimate how many payments…

A: Outstanding payment is the balance amount of debt, left after a certain period. The outstanding…

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing…

A: To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT. To open…

Q: A debt of $5600 is repaid in equal monthly instalments over three years. Interest is 7.3% compounded…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 5 years from now payments: $500 of 6 years. What est rate of 6% cc

A: in this we have to find out present value of all and future value of remaining.

Q: What payment is required to pay off a loan of $ 2,550.00 at 6.9% sixteen months later?

A: Future value is the amount we get on the investment at a particular rate of return.. In this case,…

Q: A debt can be repaid with payments of $7186 today, $15143 in 2 years and $17812 in 5 years. What…

A: Present Value (PV) refers to the current value of a future sum of money or cash flow, based on a…

Q: Consider a debt that must be repaid over a nine-year period in progressively larger half-yearly…

A: Loans refer to contracts between parties where money is forwarded by one party to the other on the…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: The objective of this question is to find the effective interest rate of a loan that is being paid…

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: Two debts, the first of $600 due nine months ago and the second of $1700 borrowed one year ago for a…

A: Future value of a present value is the value of that amount after taking into account the time…

Q: Debt payments of $1,800 due today and $1,200 due in 210 days are to be combined into a single…

A: Interest = Prinicpal * Rate of interest * time The payment due today = $1,800 will be delayed by 80…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: The objective of the question is to find the effective interest rate of a loan that is being paid…

Q: A debt of $40 000 is to be repaid in installments due at the end of each month for seven years. If…

A: Payments refer to the regular fixed cash flow made against the debt amount in order to repay it over…

Q: What is the payment in month 13 on a CAM loan for $150,000 with a maturity of 15 years at 5.85%?…

A: Debt refers to the owed capital that the corporations or individuals employ, it requires the…

Q: Consider a debt that must be repaid over a nine-year period in progressively larger half-yearly…

A: Loans refer to contracts between parties where money is forwarded by one party to the other on the…

Q: A 44 month loan has monthly payments of $412. If the interest rate is 8.1%, compounded monthly, find…

A:

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: Month-end payments = $1,450Loan amount = $123,700Number of years = 8 years

Q: A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of…

A: Here, Loan Amount is $30,000 Interest Rate is 9% Monthly Payments is $450 Time period of Monthly…

Q: A debt is to be paid with 24 equal quarterly installments and an interest rate of 36% NM. If once…

A: Interest Rate  36% New Installments  $     6,80,000.00 Time Period of refinance (Months) 12…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: You have an outstanding debt of $8,000, with 9% simple interest. If you make a partial payment of…

A: An individual or another entity may take on debt in the form of a loan. A sum of money is given to…

Q: Your bank is offering you an account that will pay 25% interest (an effective two-year rate) in…

A: The equivalent discount rate is the interest rate that discounts future cash flows to their present…

Q: A loan payment of $3200 was due 3 months ago, and another payment of $1800 is due in 6 months from…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: A debt can be paid by payments of $1000 scheduled today, $500 schedule in two years, $2000 scheduled…

A: To settle the debt 4 years from now, a single payment of approximately $4291.39 would be required.…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: The concept of TVM is used to compare the value of money at different times based on the interest…

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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: Consider a loan of Sh. 50,000 with a 30 year term, interest of 6% (i+p) payable monthly. The loan…

A: A loan is a type of financial agreement whereby a lender gives a borrower a certain amount of money,…

Q: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 6.80%. What…

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Q: Scheduled loan payments of $1285 due in 6 months and $337 due in 24 months are rescheduled as a…

A: As per the given information: Scheduled loan payments $1265 - 6 months$337 - 24 monthsRescheduled…

Q: Scheduled payments of $1054, $789, and $508 are due in one-and-a-half years, four years, and six…

A: Here, Schedule payment (FV)  $1,054.00 Time period (NPER) 1.50 Schedule payment (FV)  $789.00…

Q: Debt payments of $2,350 and $1,050 are due in five months and ten months, respectively. What…

A: Payment in five months (m5) = $2,350Period of first payment (t1) = 5 monthsPayment in nine months…

Q: Scheduled payments of ​$338​, ​$859​, and ​$1011 are due in one year​, four years, and six years…

A: The concept of TVM states that due to the interest-earning capacity of money, the money earned today…

Q: A loan of $1420 taken out on June 7 requires three payments. The first payment is due on July 7. The…

A: Periodic payment refers to an amount that is paid every period for the repayment of a loan amount…

Q: Consider a loan of Sh. 50,000 with a 30 year term, interest of 6% (i + p) payable monthly. The loan…

A: A loan is a sort of financial transaction in which a lender lends money to a borrower, who then…

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.