A loan for $2,500 with a simple annual interest rate of 18% was made on June 30th and was due on August 28. Find the ordinary interest.

Q: A customer takes out a loan of $150,000 on January 1, with a maturity date of 36 months, and an…

A: Interest on loan:-It is the rate levy on the initial amount of loan and this is the additional…

Q: The loan below was paid in full before its due date. (a) Obtain the value of h from the annual…

A: To find the value of h from the Annual Percentage Rate (APR) table, we need to look for the APR of…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using…

A: Interest Amount = Principal * Rate * Time

Q: using the ordinary interest method, find the amount of interest on a loan of $5,000 at 10 1/2%…

A: Loan amount = $5,000 Period of loan = 274 days Interest rate = 10 1/2%

Q: Simple Interest: A $45,000 loan at 3.75% dated June 10 is due to be paid on October 11. Using…

A: Ordinary interest method is one in which the rate of interest is divided by 360 days convention…

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Ordinary interest is a method of interest calculation where the principal amount remains the same…

Q: Calculate the missing information for the loan. Round percents to the nearest tenth and days to the…

A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…

Q: Suppose your MasterCard calculates interest using the average daily balance method, and the monthly…

A: The average daily balance method is a way to calculate interest charges on a credit account, such as…

Q: January 1, 2004. The investment earns 6% simple

A:

Q: Interest is $405 on a principal balance of $5,000; assuming a 7 month loan what is the rate

A: We can determine the annual interest rate by rearranging the simple interest formula below:In the…

Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400, and the cash…

A: The calculation of actual interest rate on the note is shown hereunder : Interest cost  RO 400 Cash…

Q: Find the interest on a loan of $3300 at 7% if I borrow on April 7 and repay on June 2 using the…

A: Exact Time measures 365 days in a yearOrdinary Time measures 360 days in a yearBanker's rule…

Q: Using the ordinary interest method, find the amount of interest on a loan of $11,000 at 11 %…

A: Interest amount is the fixed amount that the bank or other lender will charge for lending amount for…

Q: me loan below was paid in full before its due date. (a) Obtain the value of h from the annual…

A: To find the value of h from the Annual Percentage Rate (APR) table, we need to look for the APR of…

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: In contrasts to a fee that the borrower may pay the lender or another party, interest is a payment…

Q: (b) The unearned interest is (Round to the nearest cent as needed) (c) The payoff amount is (Round…

A: An annual percentage rate table is a table that shows the (h) value which is the value of finance…

Q: Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days.…

A: Given, Interest =$1800 Rate = 8% Time = 6 months

Q: A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15.…

A: Loan amount (P) = RM6500 Interest rate (r) = 18% Period from June 15 to September 15 (d) = 92 days

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.