Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at the end of 18 months. Annual simple interest rate = %.

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: A person pays interest on a loan daily at a nominal annual interest rate of 16%. What is most nearly…

A: Effective annual interest rate (EAR) formula: EAR=1+RMM-1 where, R= nominal interest rate m =…

Q: A loan of $1000 is paid off in 12 monthly payments of $120 each. What is the effective annual…

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

Q: Find the interest rates in the situation as: The effective annual interest rate is 11.02% and…

A: The nominal interest rate is the rate of interest before considering the inflation. It is also known…

Q: Find the refund fraction on a 30-month loan with interest of $2,802 if the loan is paid in full with…

A: Refund fraction is the amount of interest refund a lender makes to the borrower because of early…

Q: Find the i (the rate per period) and n (the number of periods) for the following loan at the given…

A:

Q: Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $73,000 at an APR…

A: The PMT function can be used to determine the monthly payments required to pay off a loan within the…

Q: Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest…

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

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…

Q: You take one-year installment loan of $1000 at an interest rate of 12% per year (1% per month) to be…

A: Loan amount (L) = $1000 r = 1%  n = 12

Q: What is the APR on this loan

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing.…

Q: Assuming that the interest is the only finance charge, how much interest would be paid on a 5,000…

A: Interest is the amount paid on a loan by the borrower to the lender above the principal amount to…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: What is the maturity value of a $60,000 loan, for 100 days, at 12.2% interest, using the exact…

A: Exact Interest method is a method which uses the exact no of days in a year rather than the ordianry…

Q: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% (b) What is…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: find i (the rate per period) and n (the number of periods) for each loan at the given annual rate.…

A: Calculation of Number of periods and monthly interest rate: Answer: Number of periods is 48 monthly…

Q: An amount of P dollars is borrowed for the given length of time at an annual simple interest rate of…

A: Amount due at the end of period can be calculated as sum of borrowing and simple interest

Q: Develop the table below by comparing the monthly paymentsfor a $200,000 mortgage loan with an 8.00%…

A: monthly payment formula: pmt=p×r121-1+r12-12×n r=rate of interest n = number of years

Q: Calculate the present value (principal) of a loan made 4 years ago at 12% compounded quarterly if…

A: Repayment amount (FV) =  $ 9600 Annual interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3%…

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: Calculate the effective annual rate on each of the following loans: 1. $5,000 loan for 2 years,…

A: Effective interest rate refers to the real return that an individual or company earns on a saving…

Q: What is the effective annual rate (EAR or EFF%)?  What is the EFF% for a nominal rate of 5%,…

A: Because you have posted multiple questions, we will answer only the first question and if you want…

Q: If $900 is borrowed and the interest after 6 months is $63, what is the annual interest rate for a…

A: The term simple interest refers to the borrowing arrangement in which the interest is only charged…

Q: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Principal =$6840 Time = 4 months Simple Interest = 3.50%

Q: What's the interest in a $500 loan at an annual simple interest of 9% at the end of 6 months?

A: Interest = Amount * rate * time

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

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: Use the​ add-on method for determining interest on a loan of $2410​, with an annual rate of 9​% and…

A: Given data, Principal amount (P) = $2410 Rate of interest (r) = 9% Time (t) = 4 years

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: Find the payment necessary to amortize a 8​% loan of ​$1100 compounded​ quarterly, with 19 quarterly…

A: The payment size can be computed with the help of present value of annuity function.

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

A: Future Value = 2577 Loan = 2500 Time Period = 3/12 = 0.25

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: Find the annual simple interest rate of a loan, where $200 is borrowed and where $218 is repaid at…

A: Interest rate =( Interest / amount ) *(1/time)

Q: What is the annual percentage rate on a loan with a stated rate of 2 percent per quarter? A. 2.00…

A: In the given question we require to calculate the annual percentage rate on a loan if the stated…

Q: You are quote for a loan as 14.5% per year, compounded monthly. What is the effective yearly…

A: Compounding interest means calculating interest not only on the principal but also on the interest…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

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

Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Consider a home mortgage of $225,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly…

A: Home Mortgage refers to amortized loan taken from financial institution for buying home and keeping…

Q: Find the present value (principal) to pay on a loan if $ 8,923 of future value (amount) is paid at…

A: Future value = Present value * (1 + rate*time)

Q: Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following loan at the given…

A: Solution:- Rate per period ie, “i” refers to the annual rate divided by the number of compounding in…

Q: A loan of $1500 is repaid with a check for $1575.  If the annual simple interest rate was 15%, what…

A: The number of months can be calculated with the help of simple interest equation.

Q: What is the effective annual interest rate in each situation? Show and explain all supporting…

A: Effective annual interest rate is the actual Interest which is paid or received by taking into…

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: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Given information: Principal (P): $6,840 Time (T) : 4 months Rate of interest (R) : 3.5%

Q: 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays…

A: Accumulation rate is the increase in size of asset, position or overall buying activity of…

Q: If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a…

A: Principal Amount = $800 Time Period = 6 Months Interest = $44

Q: A person pays interest on a loan semi - annually at a nominal annual interest rate of 16%. What is…

A: effective annual interest rate (EAR) formula: EAR=1+RMM-1 where, R= nominal interest rate M =…

Q: A loan is being repaid by 20 level annual payments of R, where R is three times the amount of…

A: Given: Number of level annual payments: 20 Level payments: R R is three times interest accruing in…

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.