A loan of $21,238 was repaid at the end of 10 months. What size repayment check (principal and interest) was written, if a 10.3% annual rate of interest was charged? CD LIUSE The amount of the repayment check was $ 23.000 93 (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: debt of $9179.58 is repaid by payments of $1797.52 in 4 months, $1295.22 in 16 months, and a final…

A: The final payment in a debt refers to the last payment made by the borrower to the lender, which…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: A loan of $21,224 was repaid at the end of 14 months. What size repayment check (principal and…

A: Interest is the amount charged for amount of of loan borrowed.Simple Interest= Amount borrowed *…

Q: A $2600 certificate of deposit held for 88 days was worth $2635.59. What simple interest rate was…

A: The present value and the future value of a certificate of deposit are known. The simple rate of…

Q: A debt of $9179.58 is repaid by payments of $1797.52 in 4 months, $1295.22 in 16 months, and a final…

A: Given: Loan amount “L” = $9179.58 Payment in 4th month "P1"= $1797.52 Payment in 16th month "P2"=…

Q: A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The…

A: Interest on loan can be calculated as: = Total interest/ number of years * rate of interest  =…

Q: Accounting for Current Liabilities A note payable is issued for a face value of $100,000. The…

A: Note payable refers to the written agreement made between two parties in which the cash is paid by…

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: Assuming a 360-day year, the interest charged by the bank, at the rate of 12%, on a 90-day,…

A: Interest charged = Notes Payable x Interest rate x 90/360

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: A 3 year straight note was executed by a buyer. The interest paid over the term was $3,431.70. The…

A: Given: Years = 3 Interest paid over term = $3,431.70 Interest rate = 9.3%

Q: The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a…

A: Monthly payment = $2,500 Interest rate = 6.3% Time period = 3 Years

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: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: The objective of the question is to find out the balance of the loan before the following payments…

Q: An amount of $3000.00 is deposited in a bank paying an annual interest rate of 5 % compounded daily.…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

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: TD Canada Trust issued a loan of $61,000 at 6.14% compounded semi-annually. The loan was repaid by…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A bank charges Cash Inc. an interest rate of 4.5% compounded quarterly on its line of credit. If…

A: Interest rate refers to the amount charged by the lender from the borrower on the principal amount…

Q: loan of $37,100.00 at 6.00% compounded semi-annually is to be repaid with payments at the end of…

A: The objective of the question is to calculate the size of the periodic payment and the total…

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.