You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the end of the year.  What interest rate are you being charged?   a. 5%   b. 7%   c. 8%   d. 9%   e. 6%

Q: Jumbo Bato borrowed money from Rovin Patila,payable for 3 years. If the interest rate per year is…

A: Data given: Interest rate (r) = 9% p.a. (assumed simple interest rate) n= 3 years   Loan amount (P)…

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: You have a new 10 year Student loan for $20,000.00 that charges an interest rate of 6.45% compounded…

A: Amortization: It is the systematic writing-off of premium or discount on bonds issued. If the market…

Q: wer takes out a 10-year mortgage loan for $300,000 with an interest rate of 7%. What portion of the…

A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…

Q: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…

A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…

Q: The monthly payments on a 15-year loan of $20,000 at 6.8% interest are $177.54. (a) What is the…

A: Ordinary annuity is when the PMTs are made at the end of the period.

Q: You got a loan today of $10,000 for 3 years, annual interest rate is 6%. The annual payment is…

A: Annual Payment of Loan: It is the periodic payment of a loan including interest for a pre-defined…

Q: Suppose that you have borowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: Loan Repayment Calculation of the loan repayment is some what complicated and need to know the fact…

Q: A loan of $2982 is repaid in three years. Find the amount of interest paid on the loan if it is…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment…

A: Generally loans are paid by annual payments that carry the payment for loan and payment for interest…

Q: rescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What…

A: The value of money changes with time. Therefore, the time value of money considers the worth of…

Q: Payment rate = i 729.18 dollars per year Interest paid i 12395.98

A: We first need to determine the effective annual rate using the formula below: EAR = einterest rate -…

Q: Find the Simple Interest on a $ 50,000 loan at 15 ½2 % annual interest for ¾ year.

A: The simple interest is based on the amount of loan (P), the given interest rate (r), and the number…

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: A car loan is taken for $20,000 to be paid back in 6 years, with monthly payments of $304. What…

A: We need to use RATE function in excel to calculate annual rate to be charged on loan. The formula is…

Q: Straight bank loan. Right Bank offers EAR loans of 8.74% and requires a monthly payment on all…

A: Monthly payment formula: PMT = principal ×aprm1-1+aprm-m×n where, m = frequency of compounding n =…

Q: If you deposit $20,000 per year for 18 years (each deposit is made at the beginning of each year) in…

A:

Q: .Consider a $10,000 loan to be repaid in equal installments at the end of each of the next 5 years.…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: A borrower takes out a 30-year mortgage loan for $100,000with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

Q: An installment loan for $18,000 has terms such that monthly payments of $180 are made for 10 years.…

A: Workings:- Time Period of Payments(in years) = 10 years Time Period of Payments(in months) = 10*12…

Q: A fully amortizing mortgage loan is made for $100,000 for 15 years. The interest rate is 6 percent…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: You borrow ksh 1,000,000 from a bank for 5 years at 10% compound interest .The loan is repayable in…

A: Present value (PV)= 1,000,000 Time (t)= 5 years Rate (r)= 10% = 0.1   The present value is how much…

Q: A 4 year loan of $125,000 with equal installment payments at the end of each year.The interest rate…

A: Therefore, P*[1-1/(1+r)^n]/r = 125,000  => P*[1-1/(1+7%)^4]/7% = 125,000 =>P*[1-0.7628]/7% =…

Q: A student has a total of $3,000.00 in student loans that will be paid with a 48-month installment…

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

Q: You borrowed $5,000 at 7% compounded annually. Your payments are $1,219.45 at the end of each year.…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: Jack borrows $7,000.00 at an interest rate of 15% compounded monthly to be paid off monthly payment…

A: Answer Correct option $6,467.70

Q: You take out 1 $10,000 loan for 7 years at an annual interest rate of 5% and with fixed annual loan…

A: Borrowed amount is $10,000 Annual interest rate is 5% Payment per year is $1,728.20   To Find:…

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: You take out a loan of $1,250 under simple interest with 4.28% APR. The term of the loan is four…

A: Information Provided: Loan amount = $1250 APR = 4.28% Term = 4 years

Q: Question.2 A person borrows 200,000 TL loan from a bank to be paid in 30 years with 30 equal…

A: Loan amount=200000Period=n=30 yearsInterest rate=r=3%

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: The question is based on the concept to calculate principal and interest on the loan amount in…

Q: Find the monthly payment on the loan. Assume that the term of the loan is 10 years. $6300 at 7.8%…

A: Given: Loan amount = $6,300 Interest rate = 7.8% Term = 10 yearsThe payment deferred for 6 months…

Q: Find the monthly house payments necessary to amortize the following loan. Then calculate the total…

A: 1). Monthly payment is calculated using following equation Monthly payment = A×(r/m)(1-1(1+r/m)n×m)…

Q: Consider a student loan of $25,000 at a fixed APR of 12% for 20 years. a. Calculate the monthly…

A: We need to use loan amortisation formula below to calculate monthly payment.  PMT =P*i1-1(1+i)n…

Q: A loan of $20,000 is paid off with installments of $1400 made at the end of each six months. The…

A: Given Information : Loan amount = $20,000 Semi - annual Payment  =$1,400 Interest rate = 7%

Q: A $90,000 reverse mortgage is for 10 years at 8% interest rate where payments are made monthly at…

A: In reverse mortgage, the home owner receives monthly payments as income rather than payment which…

Q: Vijay

A: The objective of the question is to calculate the actuarial rate for a home loan. The actuarial rate…

Q: If you borrow $100,000 at an annual interest rate of 10% for six years, what is the annual payment…

A: Given:

Q: Calculate the amount of interest to be paid on a $50,000 loan over the next 28 months if money earns…

A: simple interest formula: I =P×R×T100where,P = PRINCIPALR = RATE OF INTERESTT = TIME IN YEARS

Q: THANSKSSS FOR THE HELP

A: The objective of the question is to find out how much principal is owing at the end of two years 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.