payments of $550 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $200?

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: For how long will Markus have to make payments of $179 at the end of every year to repay a loan of…

A: Loan amount=$2130Annual payment=$179Interest rate=7%Compounding quarterly.

Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…

A: As per the information provided:  N = 48 R = 8% To determine: We have to estimate the annual…

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: Find the future value of an annuity due with an annual payment of $14,000 for three years at 4%…

A: Future value of an annuity:  The worth of a sum of money that will be paid on a specified date in…

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…

A: using financial calculator to solve the monthly payment

Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…

A: The effective annual rate measures the rate of interest or return when the compounding is done on a…

Q: payments due in 3 months and 6 months. What is the value of the two equal payments if money is worth…

A: We can determine the periodic payment using the formula below:The payments are made in 2…

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…

A: Given:

Q: What is the actuarial rate for a simple loan of $1,500 that requires a repayment of 2,000 in 5

A: In this we have to calculate effective interest rate by use of present and future value.

Q: Scenario 2: You need a $12,000 loan to buy a good used car. Your bank offers a 3-year loan with an…

A: Monthly payment refers to an amount that is paid every month until the loan period including…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: What is a monthly payment on a 25 year loan of 70200 if the annual interest rebate is 5%

A: Using Excel PMT function

Q: EZ Pay Loans will lend you $100 today with repayment of $117.50 due in 1 month. Determine the…

A: Given Information : Present Value of loan : $ 100 Future Value : $ 117.50 Time : 1 month

Q: Original Terms of Loan:  30 year loan of $127,800 at an interest rate of 6 ½ %. What is the monthly…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if…

A: A loan is a contract between two parties where an amount is forwarded on the promise of repayment…

Q: 1. The annual rent of a perpetuity is $1000, payable in semi-annual stallments. Find the present…

A: The present value is the present worth of the amount that will be paid or received at present or…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

Q: How would the payment change if Kimberly reduced the loan term to three years? Round your answer to…

A: Data given: Purchase cost (PV)=$3600 APR=16% n=3 year   Working Note#1 Monthly…

Q: What is the cash value of a property with a mortgage that requires payments of $1200 per month for…

A: To determine : Cash value of property  Monthly Payment = pmt = $1200 Term =  25 years Number of…

Q: A worker is considering a loan of $97000 over 20 years at an interest rate of 7.9% p.a. with monthly…

A: The difficulty of distributing limited resources among numerous initiatives or investments is one…

Q: You've borrowed $6,903.71 and agreed to pay back the loan with monthly payments of $270. Assume the…

A: Compound = Monthly = 12Present Value = pv = $6903.71Monthly Payment = p = $270Interest Rate = r = 15…

Q: What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a…

A: Present value of annuity formula. PV = A *  1-(1+r)-nr where , PV = Present value of annuity  A =…

Q: Find the monthly payment needed to amortize a typical $180,000 mortgage loan amortized over 30 years…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property with the…

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: What would the monthly payment be on a 20-year amortized loan of $273,600 with an interest rate of…

A: The objective of this question is to calculate the monthly payment for a 20-year amortized loan of…

Q: If i put in $500 a month which pays daily interest rate of 1% p.a., how much will I have at the end…

A: Interest is the amount of fee paid to an investor or depositor for providing funds. It is the…

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

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

A: Simple interest is the type of interest that is calculated on the original amount of the loan and…

Q: Find the monthly payment needed to amortize a typical $220,000 mortgage loan amortized over 30 years…

A: COMPOUNDED MONTHLY RATE (5.3%/12) 0.441667% YEARS  (12*30) 360 PRESENT VALUE $220,000…

Q: You borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2 years with regular…

A: Loan amount = $2400 Number if years = 2 Number of months "n" = 2*12 = 24 Interest rate = 8% Monthly…

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: How much would your monthly payment be if you wish to pay the total amount due on a loan of P144,039…

A: Given, The total value of loan amount due is P144,039. Rate of interest is 6%. Number of years 11.

Q: What is the monthly payment on a 30 year, $661,000 mortgage, with an interest rate of 3%, compunded…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Find the monthly house payments nessary to amortize the following loan. Find total payments and…

A: Loans can be secured and unsecured. The loan is the amount borrower takes from the bank or financial…

Q: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book…

A: Payment = p = $47,100Number of Payment = n = 6Interest Rate = r = 12%

Q: what will be the loan factor?

A: Loan factor can be defined as the present value factor of loan amortization. Loan factor is given by…

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.