A loan shark made a loan of $3000 to be repaid at 56% interest compounded monthly. How much is owed after 10 months

Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…

A: Short term loan: Short-term loans are borrowed funds used to fulfill immediate liquidity demands,…

Q: wer takes out a 10-year mortgage loan for $300,000 with an interest rate of 7%. What portion of the…

A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…

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: The interest amount on a $46,500 loan was $24,785.95. The interest rate charged on loan was 9.20%…

A: Future value of a loan refers to the total amount that will be due at the end of the loan term,…

Q: A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over…

A: Monthly payment refers to the amount of money payable every month by the borrower to the lender of…

Q: A company financed the purchase of a machine with a loan at 2.5% compounded monthly. This loan would…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: How much would she pay per month if she is to repay the loan in two years

A: We can determine the monthly payment by using the formula below:In the formula above r = monthly…

Q: What payment is required to pay off a loan of $ 2,550.00 at 6.9% sixteen months later?

A: Future value is the amount we get on the investment at a particular rate of return.. In this case,…

Q: You borrowed $5,000 for 24 months at 6% interest. What is the total payback on the Single Payment…

A: Total payback on the Single Payment loan - It es the payback of the loan at a single payment…

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: Find the interest refund on a 35​-month loan with interest of ​$2,834 if the loan is paid in full…

A: Data given: Total months =35 Remaining months = 13 Interest =$2834 Find=Interest refund=?

Q: Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest…

A: Effective rate refers to the actual interest rate earned or paid after taking into account…

Q: A loan of $28,500 is repaid by payments of $725 at the end of every month. Interest is 3.4%…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: loan shark made a loan of $5000 to be repaid with $5500 dollars at the end of two months. What is…

A: simple interest involves no compounding that means no interest on interest is included.

Q: What is the total interest paid on a loan of $5,000 at APR = 6% for 5 years.

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = $5,000R = Rate on interest = 6%N = number…

Q: You borrow $8,000 at an annual rate of 21%. If you repay the debt in three months, what do you owe?

A: In this question we require to calculate the amount we owe if we borrow $8000 and repay it in 3…

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: A loan shark made a loan of 5,000 to be repaid with 5,500 dollars at the end of the two months. What…

A: Simple interest = Principal * Interest rate percentage * period   Given: Loan value = 5000 Amount to…

Q: borrows $500 for four months at 9%. How much interest must he pay?

A: The amounts are borrowed from the banks for short term and long term and interest are to be paid on…

Q: A person agrees to pay a loan company $10 000 in nine months. What amount of money did the person…

A: Simple interest is the process of calculating the interest in which simple interest is calculated on…

Q: A loan of $5000 earns $750 interest in 1.5 years. Find the rate of interest.

A: Interest amount = Principal * Rate * Time duration

Q: A bank made a farmer loan of 1000 at 14% for three years compounded annually. Find the future value…

A: Loan amount = 1000 Interest rate = 14% compounded annually Period = 3 years

Q: What was the annual (simple) interest rate?

A: Simple interest rate is used to calculate the interest amount on the borrowed capital. We calculate…

Q: A:If I lend you $ 1500, at % 8 per year, what is the simple interest to be paid at the end of two…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: A loan of P15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due…

A: Notes Payable - Notes Payable is the liability for the company which needs to be paid after a fixed…

Q: compounded quarterly, what was the loan principal?

A: Information Provided: Years = 20 Monthly payment = $1700 Interest rate = 5.70% compounded quarterly…

Q: A loan of $2700 collecting simple interest at a 7.9% annual rate was repaid with a check for…

A: Solution : Given Amount of loan $2700 Simple interest rate 7.9% Amount repaid…

Q: A loan is repaid by making payments of $3456 at the end of every 3 months for 10 years. If interest…

A: We take loans to buy expensive things or large ticket items like a house or a car. These items…

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: For an auto loan of $25,600 @ 3.5 APR due in five (5) years, a) what is the total interest paid, and…

A: Loan = 25,600 APR = 3.5% N = 60 months (5 years) Interest Rate = APR/12 = 3.5%/12 per month

Q: a car loan of 25,293.25 is to be repaid with​ end-of-month payments of 554.68. If interest is ​7%…

A: Compound = Monthly = 12Present Value = pv = 25,293.25Payment = p = 554.68Interest Rate = r = 7 / 12…

Q: Bank JPX is offering personal loans of $35,000 to be repaid over 6 years with payments of $625 per…

A: Here, To Find: Effective annual rate (EAR) =?

Q: Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00.…

A: We have a loan account where payment and borrowing keeps happening. We need to find the balance when…

Q: You borrowed $25,000 from a bank at an interest rate of 12%, compoundedmonthly. This loan will be…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: The amount needed to pay off (Round to the nearest cent as needed.) this loan after 2 years is

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: None

A: When evaluating the project's profitability, it's essential to consider the opportunity cost of…

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…

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.