Find the finance charges on a 8.4 percent, 18-month, single-payment loan when interest is computed using the simple interest method. Assume that the loan amount requested is $1,000. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places.  % Find the finance charges on the same loan when interest is computed using the discount method. Round your answer to the nearest cent. $ Determine the APR in this case. Round your answer to two decimal places.  %

Q: Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on…

A: Purchase Price =$711 Down Payment = $711 * 10% = $71.10

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

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A: When funds are financed from outside, they carry a finance charge which is the cost of using those…

Q: Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the…

A: Down payment =Purchase (Cash) Price * Downpayment % = 3200*20% = $ 640

Q: Use the loan amortization table: Purchase price of a used car $5,533, Down payment  $1,153, number…

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A: The finance charge is the charge which is paid by the borrower on the amount he borrowed is called…

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A: We will use the future value calculator with given variables to find out the required information…

Q: The following installment loan is being paid off early. Calculate the rebate fraction, the finance…

A: The finance charged is the total cost that has charged for borrowed the specified amount for…

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A: A method of the loan in which the amount of installment is evaluated by combining the principal and…

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A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: Calculate the amount financed, the finance charge, and the total deferred payment price for the…

A: Concept: The total deferred amount is defined as the amount of compensation based under the plan…

Q: Using the ordinary interest method, find the amount of interest on a loan of $5,000 at 10% interest,…

A: To calculate the interest amount we will use the below formula   Ordinary interest = P*r*d/360 Where…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Data given: Principal = $7290 Rate=7% Time=17 days     Formula to be used: Interest = Principal *…

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A: The loan is an agreement between the two parties, In which one party is a loan provider and the…

Q: Calculate the missing information for the loan. Round percents to the nearest tenth and days to the…

A: In the exact method this calculation of simple interest is done based on the year as 365 days and…

Q: Given the annual interest rate and a line of an amortization schedule for that loan, complete the…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: alculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

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A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…

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A: APR stands for Annual Percentage Rate. It is a measure of the cost of credit, expressed as a yearly…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The finance charge is that charge which is paid by the borrower on the amount borrowed.

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A: Amount Financed = pv = $18,500 Number of payment = nper =  72 Monthly payment = pmt = $424.08

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A: It is important for borrowers to carefully review the terms and conditions of any credit or loan…

Q: Maturity Value (in $) Rate Time Interest rincipal Interest (%) (days) Method $3,500 168 Exact $220…

A: Solution: Maturity value = principal + interest  = 3500 + 220  = $3,720

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A: In this we have to use capital asset pricing model to get expected return.

Q: Find the APR​ (true annual interest​ rate), to the nearest half​ percent, for the following loan.…

A: APR stands for Annual Percentage Rate, which is the interest rate charged on loans or credit cards,…

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A: The annual percentage rate (APR) refers to the annual interest rate generated by borrowers or…

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.