Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $43.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)

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: Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of…

A: Annual Percentage Rate (APR)= (2 * N * FC) / [ (P * (N+1)]

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Q: calculate the APR on the loan. round to two decimal places

A: Purchase price2300Down payment600Loan amount1700No.of payments48Payment Amount42.5Monthly…

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A: in this we to calculate present value FACTOR and than find out period required.

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A: Amount of loan = Purchase cost - Down payment = $5,030 - $1300 = $3730

Q: Lamont borrows $315,000 to help finance the purchase of a townhouse and will be charged interest at…

A: The periodic interest rate can be found by using the following formula:

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

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A: The formula for the calculation of APR is as follows: APR=Fees+InterestPrincipalTime period×12

Q: Christine applied for a cash loan at PCG money lending company amounting to 100,000 pesos at 10.68%…

A: Cash loan (C) = 100000 pesos r = 10.68% n = 12 payments

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A: Step 1: Step 2: Step 3: Step 4:

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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.