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: You loan a friend $200 and are repaid $30 at the end of each month for the first 3 months and $120…

A: Rate of return = ( amount received at the end - amount invested) ÷ amount invested.

Q: The unpaid balance of an installment loan is equal to the present value of the remaining payments.…

A: 1) Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1) Where, P = Principal borrowed = (car price -…

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: 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 effective interest rate charged to a loan of P5,000 paid after 5 years amounting to…

A: Effective Rate of Interest is the percentage return on the amount invested into any return paying…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Tom is going to borrow $20000 at an interest rate of 5.25% p.a. calculated quarterly. Tom will make…

A: The interest rate that has been compounded over a certain period is the effective annual interest…

Q: A loan is offered with monthly payments and a 6.5 percent APR. What is the loan's effective annual…

A: In this question we need to compute the loan's effective annual rate if Annual percentage rate (APR)…

Q: In return for a loan of £500, a loan shark charges £1 per day payable when the loan is paid back.…

A:

Q: You purchase a car priced at 750,000 Php. You paid 10% as the down payment and the remaining balance…

A: P= 675,000 (after down Payment) r= 0.4% (monthly) n= 10 yrs* 12months= 120 months Calculate interest…

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: Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much interest is paid over the life…

A: Compound = Monthly = 12Present Value = pv = $200,000Time = t = 30 * 12 = 360Interest Rate = r = 3.75…

Q: What would be the total interest paid

A: Interest is charged on the amount lent by the lender to the borrower. In short, any excess payment…

Q: What is the simple interest rate on a loan of 2,000.00 that was paid 2,600.00 after 2 years and 6…

A: Interest = Amount - Principal Interest = 2,600 - 2,000 Interest = 600 Time = 2 years 6 months = 2.5…

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 monthly payment on a 30 year amortized loan with a fixed interest rate of 3.75% per year…

A: An amortized loan is a type of loan that is repaid in regular installments over a specified period…

Q: What is the simple interest due on a 5 year loan of 4,00,000 if the annual rate is 6%.

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: monthly

A: I would borrow a loan that is amortized quarterly.   The reason for this is based on the principles…

Q: Use the appropriate formula to find the amortization payment (in S) you would need to make each…

A: Monthly interest rate Loan amount PV = $8,500,Total number of payments Loan term t=5 years.

Q: Find the interest that will be deducted in advance from a loan of P25,000.00 due in 2 years if the…

A: Given Information : Amount of loan = ₱25,000 Annual interest rate = 6% Number of years = 2

Q: What is the price of a perpetuity that pays $17.50 semi-annually and the required rate of return is…

A: In this question we need to compute the price of perpetuity that pays $17.50 semi-annually.

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: If you bought a 4-week T-bill for Tk.887 and receive Tk.1,200 4 weeks later, what is the effective…

A: The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compounding over…

Q: Define the annual percentage rate (APR). Suppose you borrow $3,621.15 and take out a loan with an 8%…

A: Annual Percentage Rate (APR)The Annual Percentage Rate (APR) is the yearly cost of borrowing money…

Q: what is the total amount of the monthly payments for a 5-year loan is $10,692. The APR is 7%. How…

A: Using the present value of annuity formula we can calculate the original amount borrowed…

Q: Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual…

A: Interest Rate: It helps in the computation of the present value or future value of…

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: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: GIVEN, A= $200 n=20 r=2%

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…

Q: How much will a registered retirement savings deposit of $23 700.00 be worth in 8 years at 6.54%…

A: Given, Principal amount = $23,700 Time (t) = 8 years Rate of interest (r) = 6.54%

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: If I plan to avail of a loan today and I will start to pa it P9,689 at the start of

A: Given information : Periodic payment 9689 Time period (years) 6 Interest rate (Semi annually)…

Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…

A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…

Q: Find the monthly payment needed to amortize a typical$210,000 mortage loan amortized over 30 years…

A: Excel Spreadsheet: Excel Workings:

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.