1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the remaining money. Chris is approved for a loan for 5 years at 3.9 % p.a. interest compounded monthly. Answer the following questions, showing the process used for each calculation. A. Calculate Chris' monthly repayments B. Calculate the total interest charged on the loan C. Calculate the outstanding balance after 3 years

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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A: Monthly payment on the loan includes the payment towards principal and interest. From the table…

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A: When we buy a large ticket item like a home we usually take loan for that. The loan is repaid…

Q: Rosetta has a mortgage of $328,000 through her bank for property purchased. The loan is repaid by…

A: Amortization refers to the systematic and periodic repayment of interest and principal over a given…

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: What was Patrick’s monthly payment?

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A: Monthly payment is the payment made by every month that includes the principal and interest amount.

Q: Dan buys a property for $280,000. He is offered a 25-year loan by the bank, at an interest rate of…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against…

A: A mortgage is a covered loan taken to purchase a property with the property itself acting as…

Q: Sandy Kupchack just graduated from State University with a bachelor's degree in history. During her…

A: In the given question, the amount is to be paid quarterly. Therefore, the effective rate to be used…

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Q: Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end…

A: Mortgage Amount = $296,000Interest rate = 6.36%Period = 16 Years

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

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A: Using excel PMT and PV function

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A: Given information: Student loan = $7,680 Monthly Payment = 73.80 Time = 10 Annual interest = 2.9%

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A: Given values: Equal annual payments = $ 4727.53 Settling loan amount = $ 20000

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A: Borrowed amount = $10,000Interest rate for first 2 years = 4%Interest rate for next 5 years = 3%To…

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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.