(Annuity number of periods) Alex Karev has taken out a $220,000 loan with an annual rate of 9 percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month? Use five decimal places for the monthly percentage rate in your calculations. a. If Alex can pay $3,500 per month, the number of years it takes for him to pay off the loan is years. (Round one decimal place.)

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: The objective of the question is to find out the time period Zack will take to repay his loan by…

Q: Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

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A: Monthly payment The minimum amount needed every month to be paid by an individual.

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A: Time value concept Money that is received today is of more worth as compared to the money received…

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Q: how many years will it take her to pay back the loan?

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Q: Alex Karez has taken out a loan of $180,000 with an annual rate of 11% compounded monthly to pay off…

A:

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: Loan amount = $3,460.00Semi-annual payment = $114.00Interest rate = 4%

Q: Taylor will make payments of $150 at the end of every month to settle a loan of $1,300 at 5.10%…

A: Montly payment(PMT) = $150 Loan Amount = $1,300 Rate = 5.10% Compounded semi- annually

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

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Q: Theo wants to take out a loan. He takes out a loan for 15000 dollars at 3,7% quarterly interest,…

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Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

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A: Step 1:Step 2:Step 3: Step 4:

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Q: offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage…

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Q: Jason has a credit card with an APR of 29.5% and a current balance of $13,150.35. He wants to pay it…

A: APR = 29.5% Monthly interest rate (r) = 29.5%/12 = 2.45833333333333% Current balance (PV) = $…

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A: The individual or company can invest any amount of money with the bank or other financial…

Q: Sarafina is making monthly payments into an annuity. She wants to have $900 in the fund to buy a new…

A: Future value of annuity With periodic interest rate (r), period (n) and annuity (PMT), the future…

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.