A car loan is taken for $22,000 to be paid back in 5 years, with monthly payments of $457. What nominal annual interest rate is being charged in this loan? O 10.99% 9.00% O 1.25% 0.75%

Q: A $31,000 new car loan is taken out with the terms 3​% APR for 48 months. How much are monthly…

A: Loan amount (PV)=$31,000 Rate per period (i)=0.0312=0.0025 Duration (n)=48 periods Monthly amount…

Q: To borrow $1,200, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Borrowed Amount = $1,200 Interest Rate = 9% Time Period = 1 Years

Q: The interest rate on a $14,200 loan is 8.6% compounded semiannually. Semiannual payments will pay…

A: Given: Loan = $14,200 Interest rate =8.6% Years = 9

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: 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: What monthly amount is needed for a car loan with a starting balance of $8,000 over 3 years with the…

A: Car loan implies when car is purchased by making small initial payment called down-payment and rest…

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: 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: a-1 mortage makes loans with the interest charged on the loan principle rather than on the unpaid…

A: Equal Annual Payment: $2,052.19Explanation:We are givenPrincipal amount (P): $10,000Annual interest…

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: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: The compensating balance is the extra amount that needs to be maintained at all times above the…

Q: How much is the interest if you need to borrow 400,000 for one year with 475,000 line credit, where…

A: Interest = amount borrowed * rate of interest

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…

A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: You have taken a loan of $244,000. You can afford to pay monthly payments of $1921.13. This loan…

A: Mortgage payments are the monthly payments of the long-term loan taken from the lender. The borrowed…

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: ₱1000.00 becomes ₱1500.00 after 5 years when it is compounded semi-monthly. Determine (a) the…

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

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: Which expression best calculates your monthly payment for a $10,000 conventional loan that you…

A: Compound = n = Monthly = 12Present Value = pv = $10,000Annual Interest Rate = r = 4%Time = t = 5…

Q: A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid…

A: The question is based on the concept of loan amortization and sinking fund. The question can be…

Q: your given the following information about a home loan: loan amount 300000 number of years 25 years…

A: As per the Given Informatin we have, Loan= 300,000 Interest Rate Given=7% Upfront Rate=3% Total…

Q: 25. A loan of R15,000 is charged at an annual interest rate of 8%, compounded monthly. If the loan…

A: Future value is that amount which will be require to paid at some specified period of time. It…

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: 1. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the…

A: Amount payable = Loan *(1+ interest rate* time period)

Q: How much is the compensating balance if you need to borrow $350,000 for one year with 9% single…

A: Compensating Balance: It is the minimum amount that borrower required to be maintained with the…

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 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: What is the effective annual interest rate on the loan? Car purchased for $29,000 with a 5 year loan…

A: Compound = n = Monthly = 12Interest Rate = r = 9%

Q: 4. Calculate the effective annual rate of a loan that charges 1.2% per month. Select one: A. 15.4%…

A: The objective of the question is to calculate the effective annual rate (EAR) of a loan that charges…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

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: A business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if…

A: Loan = 800,000 N = 2 years Effective rate of interest = 8%

Q: pital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: how much would you need to pay annually to pay off a $5,000 loan at 4% with equal payments over 4…

A: The equal payment is the payment that has to be paid for over the period to settle the borrowed…

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: What would be r in this problem? A P100,000 loan is to be paid monthly for 2 years with an interest…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

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: PayDay Loans is offering a special on one- year loans. The company will loan you $5, 000 today in…

A: In the given question we require to calculate the Annual Percentage Rate on the following loan: Loan…

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.