Monthly loan payments are computed using a formula. Payment information isoften arranged in tables to make it easy for customers.Clonthiy Payment per $1,000 of LoanInterest Rate(APR)2-Year Loan3-Year Loan4-Year Loan5-Year Loan1%$42.10$28.21$21.26$17.092%$42.54$28.64$21.70$17.533%$42.98$29.08$22.13$17.974%$43.42$29.52$22.58$18.425%$43.87$29.97$23.03$18.876%$44.32$30.42$23.49$19.337%$44.77$30.88$23.95$19.80EXAMPLE 1Whu is the monthlu navment for a $4.000 2-vear loan with an APR of 4%? 6. Darnelle has a S10,000, 3-year loan with an APR of 5%. She uses the table onpage 159 to compute information on the loan.a. What is her monthly payment?b. What is the total of all her monthly payments?c. What is the finance charge?

The additional amount over the borrowed amount that a borrower pays to the lender is term as the…

6. Darnelle has a $10,000, 3-year loan with an APR of 5%. She uses the table on page 159 to compute information on the loan. a. What is her monthly payment? b. What is the total of all her monthly payments? c. What is the finance charge?

6. Darnelle has a $10,000, 3-year loan with an APR of 5%. She uses the table on page 159 to compute information on the loan. a. What is her monthly payment? b. What is the total of all her monthly payments? c. What is the finance charge?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

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.

Question

100%

Monthly loan payments are computed using a formula. Payment information is
often arranged in tables to make it easy for customers.
Clonthiy Payment per $1,000 of Loan
Interest Rate
(APR)
2-Year Loan
3-Year Loan
4-Year Loan
5-Year Loan
1%
$42.10
$28.21
$21.26
$17.09
2%
$42.54
$28.64
$21.70
$17.53
3%
$42.98
$29.08
$22.13
$17.97
4%
$43.42
$29.52
$22.58
$18.42
5%
$43.87
$29.97
$23.03
$18.87
6%
$44.32
$30.42
$23.49
$19.33
7%
$44.77
$30.88
$23.95
$19.80
EXAMPLE 1
Whu is the monthlu navment for a $4.000 2-vear loan with an APR of 4%?

6. Darnelle has a S10,000, 3-year loan with an APR of 5%. She uses the table on
page 159 to compute information on the loan.
a. What is her monthly payment?
b. What is the total of all her monthly payments?
c. What is the finance charge?

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rive loan is below. Payments of $1,987.26 are made monthly. Payment # Payment 1 1,987.26 2 1,987.26 3 1,987.26 Interest Debt Payment Balance 1,604.17 383.09 1,602.41 384.85 1,600.65 386.61 Provide your answer below: X Y Z Calculate the value of z, the balance of the loan at the end of month 3. Give your answer to the nearest dollar. Do not include commas or the dollar sign in your answer.
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $8,800 36 11% $ $ $288.10
Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Purchase(Cash)Price DownPayment AmountFinanced MonthlyPayment Number ofPayments FinanceCharge TotalDeferredPaymentPrice $2,600 0 $ $188.69 18 $ 796.42 $
The following loan was paid in full before its due date a) Find the value of h using an appropriate formula b) Use the actuarial method to find the amount of unearned interest c) Find the payoff amount Regular Monthly Payment # of Payments Remaining after Payoff APR 7.2% $247 8 What is the finance charge per $100 financed? h=$ (Round to the nearest cent)
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,950 48 $551.47 $ $ %
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $
Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,300 10.4 107 X days $227 Need Help? Read It
Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge Finance Chargeper $100 APR $17,950 48 $523.47 $ $ %
Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) Monthly Payment Amount Number of Table Finance APR Financed Payments Factor Charge $800 18 16% $ 15.91 $ 50.29 $ 105.22
Use the actuarial method to find the payoff amount for the loan paid in full before its due date. Amount Financed: $9000 Regular Monthly Payment. $189 02 Total Number of Payments scheduled: 60 Loan repaid in full instead of making: 12th payment
Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,300 10.4 __________ DAYS $227
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,800 18 $127.89 14 $ $

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