What was Patrick’s monthly payment?

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: John purchased a house for $325,000. He made a downpayment of 15% of the value of the house and…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Jesse borrowed from a bank at 5.92% compounded semi-annually; he settled the loan by repaying $3,055…

A: Interest rate is 5.92% compounded semi-annually Amount repaid is $3,055 every 6 month Time period is…

Q: Daniel paid $825 simple interest on a $1400 loan for five years . What was the interest rate?

A: Given: Simple Interest =$825Principal amount =$1400Time =5 years

Q: Adam purchases a house and gets a 20-year mortgage for $185,000 at 5.5% APR. In addition to the…

A: The objective of the question is to calculate the total monthly payment that Adam has to make to the…

Q: Joshua received a loan of $8,000 at 6.02% compounded semi-annually from a credit union to use as…

A: Working capital represents the liquidity of a company as it shows the difference between the current…

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: Patrick J. just purchased a Zündapp Janus (a model and brand of car) for $4,000. He agreed to pay…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Jacob needed money for some unexpected expenses, so he borrowed $3,813.23 from a friend and agreed…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Henry takes out a $650 discounted loan with a simple interest rate of 12% for a period of 7 months.…

A: A discounted loan is a loan where the borrower has to pay the face value at maturity and receives…

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: Mason borrows $41,217.00 to buy a car. He will make monthly payments for 6 years. The car loan has…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Dominique has a mortgage of $445,000 through his bank for property purchased. The loan is repaid by…

A: Any sum borrowed to meet any specific personal or business needs is regarded as a mortgage/loan. The…

Q: Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was…

A: Mortgage loans are paid by equal periodic and fixed payments and these carry the payment of interest…

Q: Sean buys a refrigerator for $899. The dealer gave him a 2-year add-on interest loan at 7.8%…

A: A method of the loan in which the amount of installment is evaluated by combining the principal and…

Q: Joan received a loan of $47,435 for 2.75 years at a simple interest rate of 9.5%. How much will Joan…

A: The future value of a simple interest amount is the principal amount with the total interest…

Q: Marc has purchased a new car for $15,000. He paid $2,500 as down payment and he paid the balance by…

A: Here,Purchase Price of Car is $15,000Down Payment is $2,000Therefore, Loan Amount (PV) is:Interest…

Q: John bought an expensive $2,740 stereo.  He took out an amortized loan for the full amount at 3.12%…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

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: Jodi takes out a loan to buy a car for $29,000. If her monthly payment is $500 and the annual…

A: Using finance we need to find the NPER FIND NPERRATE = 8%/12PMT = 500PV =-29000FV =0 We will get…

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: CJ borrowed from a bank at 3.34% compounded semi-ann $1,049 at the end of every six months for 7…

A: The periodic payments are paid to pay the loan and these periodic payments carry the payment for…

Q: Mr. Smith has borrowed $20,000 from the bank to start his small book-keeping business. He has…

A: Using excel RATE function

Q: Corey received a $36,750 loan from a bank that was charging interest at 3.50% compounded…

A: We need to use loan amortization formula below to calculate semi-annual payment.  where P=Loan…

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: 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: Josiah took out a 25-year loan for $215,000 at 9.6% interest, compounded monthly. If his monthly…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: Anna is buying a house selling for $285,000. To obtain the​ mortgage, Anna is required to make a…

A: Loans are paid by easy simple monthly payment which makes it easier to pay the loan and these equal…

Q: Tarell purchased a car for $54,700; he paid 5% of the cost as a down pay the balance amount at 3.4%…

A: Loans are paid by the equal monthly installments and these carry the payment for principal amount…

Q: takes out a $6,000$6,000 personal loan to make home repairs. His interest rate is 12%12% on a…

A: Interest is amount paid to the borrower above the amount of loan being taken and that depends on…

Q: What is the interest on interest if interest is compounded

A: Calculate the compound interest amount as follows:- Total amount after 3 years =P x (1+R/100)n…

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: Luis paid off a loan by making a payment of $4,050, which included simple interest of 3% p.a. If he…

A: Payment amount after 6 months (FV)= $ 4050 Annual interest rate (R) = 3% Period  (T) = 6 Months =…

Q: To vacation with his family, Mr. Velasco obtains a loan of $60,000 to be paid in 7 monthly…

A: Let's create an amortization table for Mr. Velasco's loan. Here are the details:Loan amount:…

Q: While buying a new car, Mitchell made a down payment of $1,000 and agreed to make month-end payments…

A: Compound = Monthly = 12Down Payment = dp = $1000Payment = p = $240Time = t = (4 * 12) + 9 = 48 + 9 =…

Q: James received a 15 year loan of $230,000 to purchase a house. The interest rate on the loan was…

A: Working Note #1 Loan amount ($) 230000 N (years) 15 Period 180 Rate(Compounded annually)…

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: Ephrem bought a home in Des Moines, lowa, for $335,000. He put down 15% and obtained a mortgage for…

A: The time value of money is related to the change in the worth of the money with time. It says that…

Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…

A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

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.