Marisol finances a sports car for $27,700 by taking out an installment loan for 36 months. The payments were $998.61 per month and the total finance charge was $8,249.96. After 21 months, Marisol decided to pay off the loan. After calculating the finance charge rebate, find her loan payoff amount.

Q: Sara borrowed a total of $10,000 as loans from her aunt Talia and after six years paid a total of…

A: Loan amount = $10,000 Payment in 6 years = $10,000 Payment in 8 years = $2,000     We will sue IRR…

Q: find her loan payoff amount.

A: Amount financed = $27,500 Number of instalments = 36Monthly payment = $998.61Payment made = 21Total…

Q: Jenna borrows $20,000 to remodel her kitchen. She makes monthly payments of $400 for six years. What…

A: Cost of Loan will be total payment made minus amount of loan taken

Q: Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: omplete amo

A: fixed Monthly payment = P*R* ((1+r)^n)/((1+r)^n-1) P= Loan amount R= 5.90%/12= 0.4916% N= 12*0.5= 6…

Q: Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic…

A: Debt Payments to income ratio (Without College Loan) = Debt/Net Income Debt Payments to income ratio…

Q: Andrea borrows $5200 to pay for college and will not be making a payment for 16 months. If $3500 is…

A: Interest is an additional amount which is paid by the borrower to the lender on borrowed amount for…

Q: What was Patrick’s monthly payment?

A: Re-payment of loan is a combination of principal loan amount and interest amount.  Loan is paid as…

Q: To fund unexpected car repairs, Dave took out a personal loan of $696. His repayment amount (…

A: The effective annual interest rate can be defined as the interest rate that is computed after…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Beverly borrowed $12,600.00 at a low interest rate of 2.2% compounded monthly for 3 years to pay off…

A: This is a question based on time value of money equations. We will apply them to solve the question.

Q: Sara made 10 payments of $108.50 to the credit union. The original loan amount was $1000. After she…

A: Payments made = $108.50 for 10 times Original Loan = $1000 Interest Amount = Total Payment made -…

Q: Dagmar has a 4-year car loan at an annual interest rate of 7.5%. She has made 26 payments of…

A: Total number of payment over the entire duration of loan = Number of years×Number of months in a…

Q: Stacy took out a loan for $15,000. Her note was for 300 days at 5% ordinary interest. On day 100 she…

A: The formula for calculating simple interest Simple Interest(I) = P*r*t Where, I = Interest Amount P…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: To help pay for college, Christine borrowed money from an online lending company. She took out a…

A: Amortized Loan (PV)  $57,000.00 Interest Rate (Rate) 5.65% Time Period (Years) 10

Q: Carie purchased a car for $49,000; she paid $4900 as a down payment and financed the balance amount…

A: Present Value= the financed amount after the down payment= 49000-4900= 44100Payment per period can…

Q: o help open up a jewelry store, Kaitlin borrowed money from her credit union. She took out a…

A: Time value of money is used to calculate the monthly instalments, rate of interest, total amount to…

Q: Joan borrowed $18,000.00 to buy a car. She repaid $4700.00 three months later and $8300.00 nine…

A: If enough funds are not available with a person for a transaction, then the person can avail credit.…

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: Anna does not use her credit card for anything else and she pays off the $100 cash advance plus in…

A: Particulars Values Total Cash in advance  $100.00  Interest rate(APR) 18.000% Monthly Payment…

Q: A woman uses a loan program for small businesses to obtain a loan to help expand her vending machine…

A: Loan amount = $20,000Interest rate = 1.3%

Q: To pay for a  $22,300  truck, Jina made a down payment of  $4900  and took out a loan for the rest.…

A: As per the information provided : Jina to pay $22,300 for a truck. She made a down payment of $4,900…

Q: Erica has just purchased a new personality from I Spy a New You, LLC for $1250. She put exactly 25%…

A: Using excel PMT function

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: Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000…

A: Introduction Interest may be defined as those types of monetary payments which are made for…

Q: Mariah took a loan in the the rate of 5.54%, compounded annually. Mariah will make bi-weekly…

A: Loans are paid by equal periodic payments that carry the payment for interest and payment for loan…

Q: Jennifer Richards went to her credit union to borrow $5,500 at a rate of 8.11 % p.a. The date of the…

A: Data given: P=Loan amount = $ 5,500 r=Rate= 8.11% p.a. Date of the loan = September 7 Date of…

Q: Scott finances a Jet Ski for $4,600 by taking out an installment loan for 48 months. The payments…

A: Rebate refers to the amount that is given back to the customer after the complete payment when the…

Q: Ashley took out a student loan for $12,544. The loan had annual interest of 6.9%. She graduated five…

A: A subsidized loan is a loan where the government provides the interest on the loan for the entire…

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

A: Solution 1: Ryan's Car PurchaseGiven:Down Payment: $1,200Monthly Payment: $320 for 3 years and 6…

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: Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed…

A: Using excel PMT function

Q: A couple wishes to borrow money using the equity in their home for collateral. A loan company will…

A: Mortgage loans are paid by equal monthly payments that carry the payment for interest and payment…

Q: Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan…

A: Loan is an agreement between lender and borrower where lender agrees to provide funds to borrower.…

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.