Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10 years. You plan to make annual payments. After you've made the second payment, how much principal have you paid? (Hint, first find the payment on the loan.) O $2,466 O $1,732 O $733 O $16,002

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: What is your monthly loan payment? What is your expected balance after five years (60 months)?

A: Purchase Price64900Down Payments10000Loan Amount54900No.of Payments84Monthly Rate0.0033Monthly…

Q: Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually).…

A: Given: Present value = $1,000 Years = 4 Interest rate = 8%

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: You have taken a loan of $244,000. You can afford to pay monthly payments of $1921.13. This loan…

A: Mortgage payments are the monthly payments of the long-term loan taken from the lender. The borrowed…

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

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A:

Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…

A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…

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Q: ou just borrowed $490,000 for a mortgage on your new home. The mortgage has a 30​-year term with…

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Q: Which expression best calculates your monthly payment for a $10,000 conventional loan that you…

A: Compound = n = Monthly = 12Present Value = pv = $10,000Annual Interest Rate = r = 4%Time = t = 5…

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: You deposit $100 each month into an account earning 7% interest compounded monthly. a) How much will…

A: Given:P = $100 (monthly deposit)r=0.07 (7% annual interest rate, expressed as a decimal)n=12…

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5% for 40…

A: Here, To Find: Monthly payment =? Total Interest =?

Q: Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate…

A: The monthly payment can be derived from the following formula PMT=P×APRn1-1+APRn(-nY

Q: Find the total monthly payment, including taxes and insurance, for the following loan. Term of…

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Q: (d) Repeat the process with the loan split into two 3 year loans. Round to the nearest dollar. End…

A: Future Value refers to the value of present value of annuity after a given period of time period…

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A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: If you lend $3000 to a friend for 15 months at 8% annual simple interest, find the future value of…

A: Futre value of loan is calculated as follws:-FV= A+IwhereFV= future value of loanA= Amount of loan I…

Q: Question.2 A person borrows 200,000 TL loan from a bank to be paid in 30 years with 30 equal…

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Q: Suppose you borrowed $50,000 at a rate of 8.1% and must repay it in 5 equal installments at the end…

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Q: I hope you could write the formula and process more clearly. Thank you

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A: Interest refers to an amount that is paid every time along with the principal payment for the…

Q: Vijay

A: The objective of the question is to calculate the actuarial rate for a home loan. The actuarial rate…

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Q: If you borrow $100,000 at an annual interest rate of 10% for six years, what is the annual payment…

A: Given:

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A: A Certificate of Deposit (CD) is a financial tool that offers a predetermined interest rate for a…

Q: Toyota S murang auto finance company is prepared to offer you a loan of $38,000 to buy a new Toyota…

A: Loan amount (L) = $38000 n = 7 years r = 12% Let A = Annual repayment

Q: If I took out a loan for $550,000 10 years ago with an interest rate of 7%p.a on a 25 year loan…

A: Loan (Borrowings): A loan is an agreement to lend money to someone with the intention of repaying it…

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.