You take out a loan of $1,250 under simple interest with 4.28% APR. The term of the loan is four years. How much interest do you have to repay at the end of the four years? O 214 1464 O0.0428 04

Q: You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…

A: We will use the concept of time value of money. Here each payment is made in a different time period…

Q: What would the monthly payment be? It is a zero amortizing loan

A: Given  Pv=300000*75%=225000 i=6%/12=0.5% n=30*12=360 Pv=pmt*(1-(1+i)^-n)/i

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

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: 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: A PLAM loan for 30 years at an annual interest rate of 3% and a balance of $50,000 was made. Suppose…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: 1. A man borrows P2,500 for 2 years at 8 %4%. How much and what will be the amount at the end of the…

A: When the bank deducts interest from the loan amount it is known as a discount. When the discount is…

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: Suppose you want to apply for a loan of $500,000 with repayment tenure of 5 years. The interest rate…

A: The objective of the question is to calculate the Annual Percentage Rate (APR) of the loan. The APR…

Q: What is the Effective Annual interest Rate (EAR) of the following car loan?. The loan amount is…

A: Calculation of Effective Annual Rate By using Rate function of Excel=RATE(nper,pmt,pv)wherenper is…

Q: Consider a 30-year mortgage loan of $33.116.7571, with an interest rate of 14.00%, assuming monthly…

A: A mortgage refers to a covered loan that is borrowed for purchasing a property with the property…

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…

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: You purchase a home for $436,000 by making a down payment of 15% and financing the remaining amount…

A: Particulars Amount ($) a Value of House 436000   Less:    b Down Payment @15% 65400 c…

Q: You have a mortgage for $95,000 at 6.50% for 30 years, monthly payments. The loan has a five percent…

A: An amortized loan is subjected to a prepayment penalty if repaid within a stipulated timeline. The…

Q: You plan to take a 15-year mortgage in the amount of $400,000 to buy a home.  The bank charges 4%…

A: Given, Mortgage amount is $400,000 Rate is 4% term is 15 years

Q: You apply for a loan of $151,000 with the following terms: A 7-year loan with semi-annual payments…

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

Q: What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a…

A: Present value of annuity formula. PV = A *  1-(1+r)-nr where , PV = Present value of annuity  A =…

Q: What is the new payment on a 25-year, monthly payment, adjustable-rate mortgage after five years if…

A: An adjustable rate mortgage (ARM) is a type of home loan in which the interest rate can change…

Q: Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make…

A: The Effective Annual Rate, also known as the Annual Equivalent Rate (AER) or the Annual Percentage…

Q: What is the FV of a RO 800, 6-year loan with 2% monthly compound interest?   a. All options are…

A: Using excel FV function

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: 1. PEDRITO OBTAINS A LOAN FOR $140,000.00 FOR A TERM OF ONE YEAR AND EIGHT MONTHS WITH A SIMPLE…

A: Simple interest is a method of calculating interest on a principal amount without considering the…

Q: How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your…

A: On the income statement, the expenditure for interest is categorized as a non-operating item. It is…

Q: floating rate mortgage loan is made for $100,000 for 30yrs at a start rate of 12% interest. The…

A: In this question principal at the end of year one would be the total mount paid in monthly…

Q: You take a small business (SBA) loan for $90,000. The current annual interest rate on SBA loans is…

A: Loan Amount = a = $90,000 Interest rate = 6%

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

A: Given:

Q: Investigate the effect of the term on simple interest amortized auto loans by finding the monthly…

A: Given,  The loan amount is $13,000 Interest rate is 8 7/8%

Q: 2/ a person owes 1000$ due in 1 year with interest rate 6%. two equal payments in 3 and 9 months,…

A: Creditor is a person from whom the amount has been borrowed. Debtor is required to pay the amount…

Q: You decide to originate the loan, but move at the end of 5 years. What is the remaining balance you…

A: Loan Amount  $                   3,00,000.00 Time Period 30 Years Interest Rate 7.20%

Q: You take out a mortgage for $320,000 at 3% compounded monthly. What are your monthly payments if the…

A: Mortgage (P) = $320,000 Monthly rate of interest (r) = 0.0025 (0.03 / 12) Monthly Period of mortgage…

Q: Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments.…

A: Loan amount(PV)=$120,000 Duration (n)=30*12=360 periods Rate per period(i)=0.0612=0.005 Monthly…

Q: A$66.000interest-only mortgage loan is made for 30 years at a nominal interest rate of 8 percent.…

A: Effective annual rate The rate of return received from an investment or the interest paid for the…

Q: How much will you pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A borrower takes out a 30-year mortgage loan for $150,000 with 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: Devon takes out a loan of $1,500 at 5.5% simple interest for 53 months. What is the maturity value…

A: Given:  Loan = $1,500 Interest rate = 5.5% Number of months = 53