Sara made 10 payments of $108.50 to the credit union. The original loan amount was $1000. After she had made all the payments, how much interest did she pay?

Q: I borrowed $3650 from a bank for 8 months. The bank discounted the loan at 7.5%. How much interest…

A: We need to use simple interest formula below to calculate interest or discount on loan.Simple…

Q: Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge…

A: Principal Amount = p = $1400Interest = i = $70Service Charges = sc = $12Number of Payment = n = 12

Q: John borrows $700 from a bank. He promises to pay $749 in 1 year's time. How much interest is john…

A: Time value of money is one of important concept of finance. It means a dollar amount invested today…

Q: Michael Perez deposited a total of $3000 with two savings institutions. Bank A pays interest at the…

A: Total amount deposited = $3,000Bank ALet Amount deposited in Bank A be P.Annual interest rate = 6%…

Q: find her loan payoff amount.

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

Q: ds to borrow $5000 to pay for NHL season tickets for her family. She can borrow from the credit…

A: The annual percentage rate (APR) is the total cost of a loan to a borrower, including fees which is…

Q: Jane requested a loan from a bank amounting to P186,980 to continue her small business. But she only…

A: A loan is an arrangement in which borrower receives money from the lender which is to be repaid…

Q: X and Y own a home recently appraised for $317,400. The balance on their existing mortgage is…

A: Appraised value = $317,400Existing mortgage value = $214,074Bank Rate =  70%

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: Maya borrowed $700 from a lender that charged simple interest at an annual rate of  6%. When Maya…

A: A loan is a borrowing that an individual or entity takes into account. A lender is the other side in…

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: Present Value = 18,420 Future Value = 20,000

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: Rahma borrowed OMR 600 at the rate of 12% from Bank Dhofar for 6 years. Find the interest she will…

A: Given taht, Loan amount = OMR600 Rate of interest = 12% Number of year for which loan has taken =…

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: A year ago your Aunt Sheri deposited $ 1 comma 000 in a bank account. One year later, there was $ 1…

A: To find the Annual Percentage Rate (APR) compounded monthly, we can use the formula for compound…

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: Laura borrowed a total of $25,000 from two different banks to start a business. One bank charged the…

A: Given in the question:Total Loan Amount = $25,000Interest rate of one bank = 3%Interest rate of…

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

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: Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months…

A:

Q: Assume simple interest and find the rate of interest paid by the bank.

A: The amount deposited in the bank is $6,400. The amount received is $6,453.33 The interest paid by…

Q: the amount financed the finance charge The deferred payment price.

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

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: I need help working out this problem. Please explain in detail.   Polly Flin borrowed $5,000 for 60…

A: The question is based on the concept of simple interest calculation and adjustment in principle by…

Q: Dila just deposited $10,600 into an account that pays 7.4% p.a.. but with daily compounding (i.e.,…

A: The concept of time value of money will be used here.As money earns interest its worth changes with…

Q: Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past…

A: Interest charges are the amount of cost and charges paid for the amount borrowed either for personal…

Q: s a gross monthly income of $3,900. She has 15 remaining payments of $189 on a used car. The taxes…

A: TDS is the total debt ratio that is the ratio of the monthly housing payment plus other debt divided…

Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…

A: Given: Maturity Value "M" = P405630 Proceeds = 83.84%*P405630 = P340080.192 Number of years = 12…

Q: On August 19, Siobhan O’Sullivan started an ordinary annuity. She arranged to have $150 deducted…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: Tabitha had to pay her friend $900, 4 months ago and she has to pay $630 in 4 months. If her friend…

A: The present value is the current date value of the annuity that can be determined by discounting the…

Q: Larry borrowed $1,000 through a loan shark, two years later he ended up paying $1,500 to settle his…

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

Q: Ms. Daphnee Rosagas needs 5,500 on August 19, 1991 for her children's school expenses. She plans to…

A: Future Value Required = 5500 Loan Date = August 19,1991 Repayment Date = December 6, 1991 N = Time…

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: Use the unpaid balance method to calculate the finance charge on Joanna's credit account if last…

A: Computation:

Q: Jessica has an account with $4,900. She earns 5%, compounded monthly. She doesn't  added nothing to…

A: Given information, A = final amount = 4900 + 2700 = $7600 P = principal amount = $4900 r = annual…

Q: Marisol finances a sports car for $27,700 by taking out an installment loan for 36 months. The…

A: Amount financed = $27,700 Number of instalments = 36 Monthly payment = $998.61 Payment made = 21…

Q: Arianna borrowed $6700. Over the course of 4 years, Arianna ended up paying $1340 in interest. What…

A: Simple interest is that interest which is charged only on the principal. It is not the same as…

Q: 5. On June 1, Bertha Hammond deposited $545 in a savings account at Metro Sav- ings and Loan…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

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.