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

A: "Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: K Use the average daily balance method to compute the finance charge on the credit card account for…

A: The objective of this question is to calculate the finance charge for the month of August using the…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Principal Amount = p = $7310 Interest rate = r = 7% Time = 13 days

Q: What is the due date of a 220 day loan made on February 12?

A: Due Date: It represents the day when the accruals on the loan fall due. Another name for the due…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: The average daily balance method is the method wherein the finance charges are calculated on the…

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Finance charge is the charge which is paid by the borrower for borrowing the money from the…

Q: You get a credit card. The bill for $1024 was due on July 1. Purchases of $315 were made on July 7,…

A:

Q: The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given…

A: Interest rate = 10.5% Initial balance = $150  Number of days = 1-3 is 3 days Number of days = 4-20…

Q: lingerland borrowed $6,000 on July 20, at 11% interest. If the loan was due on October 15, what was…

A: given, p= $6000 r = 11% n = 87 ( july 20 - oct 15)

Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…

A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…

Q: Find the maturity value of the given loan amount. $2,234 borrowed at 12⅛% from March 10 through…

A: Future Value: The future value is value of present amount compounded at an interest rate until a…

Q: What will be the total interest earned on a 6%, $2,000 note receivable that is due in nine months?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Home Run Sports has an operating loan with CIBC. The interest rate is set at prime + 3.25%, and on…

A: An interest rate can be understood as the expense associated with borrowing money, usually expressed…

Q: Use the average daily method to find the finance charge on the credit card account for September…

A: Average daily balance is a method in which balance for each day is calculated. Sum of each day…

Q: A 100-day note with a face amount of $54,000 and interest rate of 9% is issued on June 1. Required:…

A: 1.

Q: Ludwig borrowed $8,000 on July 20, at 11% interest. If the loan was due on October 17, what was the…

A: Step 1 A percentage of the principal, or the amount loaned, is what a lender charges a borrower as…

Q: What is the finance charge, on the average daily balance, for this card over this 1 month period?

A: Finance Charge is the interest charged by credit card companies over an outstanding amount.  Average…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Data given: Principal = $7290 Rate=7% Time=17 days     Formula to be used: Interest = Principal *…

Q: Use the actuarial method to find the payoff amount for the loan paid in full before its due date.…

A: The method which is derived for calculating the amount of allocation between the principal amount…

Q: The simple interest note was discoanted at 15%. Find the discount period in days and the proceeds.…

A: In order to calculate the proceeds of the simple interest note, we are required to calculate the…

Q: balance method. The table below shows your activity for the month of July. Date July 1 July 9 July…

A: Credit cards provide short term credit and can be later with interest and credit cards are used now…

Q: The simple interest charged on an 8-month loan of $95,000 is $974. Find the simple interest rate.…

A: Simple interest = Amount*Rate*time in years

Q: The simple interest charged on a 11-month loan of $54,000 is $732. Find the simple interest rate.…

A: simple interest can be given by the formula: I=P×R×T100

Q: what is the due date for a loan dated Nov 7 for 120 days?

A: Due date is the date on which the loan will mature.  Loan is taken on November 7 for 120 days.

Q: An automotive dealer borrowed $8200.00 from the Bank of Montreal on a demand note on May 8. Interest…

A: The cost of borrowing money or the return on an investment is interest. For borrowers, interest is…

Q: Bruce Wayne borrowed $14 300.00 for investment purposes on May 19, on a demand note providing for a…

A: Interest calculation May 19-June 28 Number of days = 41 First interest payment =…

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

A: INTEREST = PTR / 100 INTEREST = $1,575 P = PRINCIPAL T = 0.5 YEARS OR 6 MONTHS R = 9%

Q: Use the average daily balance method to compute the finance charge on the credit card account for…

A: Finance Charges on Credit Card: It is the fees associated with using a credit card. Credit card…

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

A: Financial organisations, including banks and credit card firms, use the average daily balance…

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

A:

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.