A new furniture set costs $ 2700. If you make a down payment of $ 300 and finance the rest at a rate of 7.6% for 18 months, find the monthly payments on your loan. How much will you have paid in interest over the course of the loan? Repayment amount =  Interest paid =

Q: You would like to buy a new car and will need to borrow $25,000 to do so. Your loan will be repaid…

A: EMI or monthly payment of loans is the payment which the borrower makes every month towards loan…

Q: You have purchased a house and take out a $600,000 loan with a 30 year term at 5% nominal annual…

A: Information Provided: Loan amount = $600,000 Year = 30 Interest rate = 5% compounded monthly

Q: Consider borrowing $250,000 to purchase a house at a 4% annual interest rate to be paid in full in…

A: The debt amortization schedule refers to the table that showcases the interest and principal…

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A: First we need to use loan amortgage formula below to calculate monthly payment.  where P=Loann…

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A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

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A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

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A: Amortization of loan refers to the regular and systematic repayment of the loan amount along with…

Q: Suppose you buy a $40,000 car and you 'put down' $5,000 and finance the rest for 72 months at 3.75%…

A: Solution:- When a loan is taken, the amount can be repaid as a lump sum payment or in instalments.…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

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A: Present Value of loan (PV) = $100,000Annual Rate = 6%Monthly rate (r) = 6% / 12 = 0.5% or…

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A:

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

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A: Repayment amount refers to the total amount taht is being paid for the repayment of the amount…

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A: Information Provided: Amount Borrowed = $400,000 Term = 30 years Fixed APR = 3.87%

Q: A new furniture set costs $ 2900. If you make a down payment of $ 400 and finance the rest at a rate…

A: Cost of furniture = $ 2900 Down payment = $ 400 Mortgage amount (PV) = 2900-400 = $ 2500 Interest…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

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A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: mortgage value = n = 30 x 12 = 360

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A: Future Value of Loan = Amount of Loan + interest on Loan

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A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: Suppose you make a down payment of 6% of $27,600 for a car and finance the rest at 1.5% compounded…

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Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

A: The number of months to stay will be around 6 months.

Q: You are taking out a new loan of $140,000 that includes an origination fee of 4.5%. How much money…

A: Given, New loan = $140,000 Origination fees = 4.5%

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Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) Finance $650,000…

A: A loan is a sum of money that is taken out from a lender and usually paid back over time through…

Q: . What are the monthly loan payments? Enter your response below.

A: The monthly payment on a loan is the set amount that is recurrently paid to the lender over the…

Q: You buy a $36,000 car. You put $1,000 down and finance the rest with a 3.6% interest loan with…

A: Amortized loan: It is a type of loan where the borrower would make an equal periodic payment towards…

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.