An automobile loan of $15,000 at 12% APR compounded monthly for 36 months requires equal monthly payments of $498.21. (a) Complete the following table for the first two payment periods as you would expect the bank to calculate the values (show all calculations made below the table): End of Month(n) Interest Payment Repayment of Principal Remaining Loan Balance 0 N/A N/A $15,000 1   $348.21   2 $146.52       b) What is the portion of the prinicple payment to be made in the 23rd month?

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Q: What are the interest cost and the total amount due on a six-month loan of $2,100 at 13.5 percent…

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Q: The interest rate on a $14,200 loan is 8.6% compounded semiannually. Semiannual payments will pay…

A: Given: Loan = $14,200 Interest rate =8.6% Years = 9

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A:

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A: Solution Rate (in %) for the loan = Interest / principal amount * 360/ days of loan

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Q: A $4,800 loan at 9.0% compounded monthly was settled by a single payment of $5,800 including accrued…

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Q: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: Ordinary interest, also known as simple interest, is a method of calculating interest on a loan or…

Q: For the following loan, make a table showing the amount of each monthly payment that goes toward…

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Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Using excel Rate function

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Loan amount (L) = $13000 Number of payments (n) = 36 Monthly payment (M) = $454 Let r = Monthly rate

Q: A $7,500.00 demand loan was taken out on March 4 at a fixed interest rate of 7.66% with fixed…

A: In demand loans, the lender has the right to "call" the loan, demanding full repayment immediately…

Q: Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: Principal Amount = p = $185,000 Time = t = 2 years Interest amount = i = $24,050

Q: The interest rate on a $57,000 loan is 8.6 % compounded semiannually. Quarterly payments will pay…

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A:

Q: A company borrows $126,500 from a bank. The interest rate on the loan is 10 percent compounded…

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Q: Complete the first three lines of an amortization schedule for the following loan. Assume monthly…

A: Loan amount = $3,000 Interest rate = 18% Period = 18 months or 1.5 years

Q: How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for…

A: Here, Time Period of Loan is 4.5 years Loan Amount (PV) is $4,887 Interest Rate on Loan is 7.4%…

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.