Apply 11. Jarvis is buying a boat that costs $6,000. He has $500 for a down payment. He is deciding between a 2-year loan and a 3-year loan. Use the rates in the table to determine how much money he will save if he chooses the 2-year loan instead of the 3-year loan. Round to the nearest cent. Simple Interest Rate () Time (years) 1 1.5 2.25 3 3.0

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A: A mortgage is a type of loan that is linked to real estate. It is a form of a secured loan on the…

Q: You're eyeing on to purchase a $23,000 vehicle. With a $9,000 down payment, three- year loan at a 5%…

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Q: Give typing answer with explanation and conclusion you want to borrow $71,400 from your local bank…

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A: Rate = 62% Principal = $1470 Maturity Value =$3200 Interest = $3200 -$1470 Interest = $1730

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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.