A loan of $21,224 was repaid at the end of 14 months. What size repayment check (principal and interest) was written, if a 5.6% annual rate of interest was charged? The amount of the repayment check was $ (Round to two decimal places.)

Q: A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and…

A: Answer -    Given Data, P = $ $21919 r = 10.7% = 0.107 t  = 18 months = 18/12 = 1.5 yrs   Formula,…

Q: Idaho International Inc. borrows $86,600 from a bank at 3.08% compounded semi-annually for 7 years…

A: Here,Compound = Semiannually = 2Present Value = pv = $86,600Interest Rate = r = 3.08 / 2 = 1.54%Time…

Q: A financial institution made a  $2,000,000 ​1-year discount loan at 11​% interest, requiring a…

A: Effective interest rate on the loan with compensatory balance is always higher than the stated…

Q: Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.) (1) If the note…

A: Given information Interest expenses  = $511 Notes payable ( p ) = $4700 Duration (n) = 3 months…

Q: XTZ Company took a loan from the bank for 10 years, and compounded quarterly interest of 8.7 per…

A: Loans play a pivotal role as crucial financial instruments that empower both individuals and…

Q: Find the interest rate for a $5000 deposit accumulating to $6874.70, compounded quarterly for 8…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Royal Bank charges administration fees of 2.9% of the loan amount per annum. Target Corporation has…

A: Here,Administration Fees (f) is 2.9%Negotiated Interest Rate (BR+m) is 10.5%Compensating Balance (b)…

Q: 6667.63 is deposited in a bank that pays 18% annual intere compounded monthly. At the end of the…

A: Here the FV at the end of last withdrawal is 0.

Q: A given account accrues two kinds of deposits for a period of 7 years. One is a leveled deposit of…

A: Deposit account is a financial service offered by banks and other financial institutions to their…

Q: A loan of $4, 300 at 6.40% is to be repaid by three equal payments due six, eight, and ten months…

A: A loan is a type of financial transaction in which funds or money are given to another party (the…

Q: calculate the accrued interest for the following notes (round to two decimal places, if necessary).…

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: A 2300 note with interest is repaid after 90 days with a check for 2,374.75 What was the interest…

A: Interest Amount = P * R * TWhere P = PrincipalR = Rate of InterestT = Time Period…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: The objective of this question is to find the effective interest rate of a loan that is being paid…

Q: Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00.…

A: We have a loan account where borrowing and payment is a continuous process as per requirement. We…

Q: A company borrows $171,000 from a bank. The interest rate on the loan is 6 percent compounded…

A: Loan amount = $171,000Interest =6%Number of years = 5 years

Q: A P22,000 loan bearing interest at 9.6% compounded bimonthly was repaid, after a period of deferral…

A: Interest rate (r) = 9.6% per annum = 9.6%/24 per bimonthly = 0.4% Bimonthly payment (B) = P 2600…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: Month-end payments = $1,450Loan amount = $123,700Number of years = 8 years

Q: A regular deposit of $120 is made at the beginning of each year for 20 years. Simple interest is…

A: Simple interest is the interest paid or computed only on the principal amount of money. It odes not…

Q: Find the compound interest earned if PhP 52,738 is deposited in a bank at 3.7% compounded monthly…

A: Compound Interest = P(1+r)^t - PWhere P = Principal = PhP 52,738R = Rate on interest = 3.7% / 12 =…

Q: What nominal rate of interest, compounded quarterly

A: To calculate the nominal rate of interest compounded quarterly over the first ten years, we need to…

Q: An automobile loan of $26,000 at a nominal rate of 12% compounded monthly for 48 months requires…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: Find the interest rate for a $9000 deposit accumulating to $11,517.62, compounded quarterly for 9…

A: Interest rate (r) = n[(A/P)1/nt - 1] Where, Number of compounding in a year (n) = 4 Years (t) = 9…

Q: Ackerman Company enters into an IRG arrangement with Westbank for a 9 months, $800,000 loan starting…

A: nominal interest = 8% no. of compounding periods =12/3…

Q: nterest rate charged on the loan was 3.5% co

A: Answer : Amount = $15000 Time = 6 year 6 month Rate of interest = 3.5%  Interest compounded monthly…

Q: Calculate the amount obtained for the following loans a) RM 2,500 with interest 7.5% compounded…

A: FUTURE VALUE IS THE VALUE OF PRESENT AMOUNT COMPOUNDED TO FUTURE DATE formula: Fv =PV×1+RMM×N where,…

Q: Royal Bank issued a loan of $90,000 at 6.94% compounded semi-annually. The loan was repaid by…

A: The periodic payment is the regular and equal repayment of the loan amount over the period of the…

Q: A $1500 certificate of deposit held for 97 days was worth $1519.80. What simple interest rate was…

A: Simple interest is the method to calculate the interest charges on the principal amount for the…

Q: A company has borrowed £776,600 from a bank. The loan is to be repaid by level instalments, payable…

A: Mortgage amortization refers to the process of paying off a mortgage loan over time through a series…

Q: You deposit $1,000 in the bank at an annual interest rate of 8%. Interest is compounded once per…

A: Present Value, PV = $1,000 Interest rate per period, r = 8% Number of compounding periods, n = 1 The…

Q: A debt of $6436.51 is repaid by payments of $1707.02 in 3 months, $1233.91 in 13 months, and a final…

A: Given variables in the question:Debt=$6436.51Payment details:In 3 months=$1707.02In 13…

Q: Nabil's bank pays 5% interest compounded quarterly. The account balance started out at $4,526. What…

A: Here in this question, we are required to calculate balance in bank account after 2 quarters. In…

Q: What are the correct portions assigned to principal interest of the final payment?

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: State Bank made a loan at 12% interest for 360 days. If the amount of interest was $931.80, use the…

A: The objective of the question is to find the principal amount borrowed from the bank using the…

Q: Using the Present Value of an Annuity of 1 TABLE4, calculate the factor. Next, determine the annual…

A: 1. In this case the annual payment is made and thus present value of annuity factor would be used to…

Q: An investor makes a 14 year deposit of $6,991. The bank is paying an interest rate of 16.69% per…

A: We can use the formula for compound interest to find the number of periods: A = P*(1 + r/n)^(n*t)…

Q: What is the nominal annual rate of interest compounded monthly if a 9-year loan of $57,300 is repaid…

A: Here,LoanAmount is $57,200Time Period of Loan is 9 yearsMonthly Payment of Loan is $781.91

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.