Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, ar Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find t amount of the loan payment for each. Round your answer to the nearest whole dollar.

Q: years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after…

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Q: Karen obtained a $20,000 loan at 4% compounded semiannually. a-1. What monthly payment will repay…

A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

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A: The PITI payment includes payments for mortgage, insurance and taxes towards the mortgage.

Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

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Q: Susan has a 25-year home mortgage of $211,340 at 4.75% interest and will pay $1,874 annual insurance…

A: monthly PITI payment consists of monthly mortgage,insurance and Tax.

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

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Q: Aiyana took a $72,000 loan at 2.83% compounded monthly and decided to make of month payments of…

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Q: Karen obtained a $36,000 loan at 3.5% compounded semiannually. a-1. What monthly payment will repay…

A: Here, Loan amount = $36,000 Interest rate = 3.5% compounded semi-annually Time = 8.5 years To Find:…

Q: Ms. Madison has an existing loan with payments of $782.34. The interest rate on the loan is 10.5%…

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Q: Patricia has borrowed an amount of Sh. 4 million to start a boutique business in Kileleshwa . The…

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Q: Dan buys a property for $280,000. He is offered a 25-year loan by the bank, at an interest rate of…

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Q: Karen obtained a $25,000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay…

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Q: To start a new business, Alysha intends to borrow $19,000 from a local bank. If the bank asks her to…

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Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

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Q: Sara borrows 35,000 at 12% for 9 months on a discounted loan. A. How much is the interest on the…

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Q: , Jane borrows an amount of money L. She repays it in 360 equal monthly payments at the end of each…

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Q: B) Ms. R. agrees with the bank to repay the debt plus interest with annuities in the amount of…

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Q: Mindy takes out a 4-year loan of $5000 at an annual rate of discount of 5%. How much does she…

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Q: final answer to 2 decimal places.)

A: for 8 years and 1/2 years= 8*2+1= 17 times. annual interest rate = 4.6%, so semiannual = 4.6/2=…

Q: Ariells borrows 400.000 at i-.03. She repays this loan by paying off only the interest due at the…

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Q: Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized…

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A: Step 1 Amortization is an accounting method used over a certain period of time to gradually reduce…

Q: Miller borrows $370,000 to be paid off in four years. The loan payments are semiannual with the…

A: Principal loan amount (P) = $370,000Semiannual interest rate (r) = 0.04 (i.e. 0.08 / 2)Semiannual…

Q: Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance…

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Q: Jennifer has a 60-month fixed installment loan, with a monthly payment of $223.04. The amount she…

A: Unearned Interest: Unearned interest is interest that a lender has collected but has not yet earned…

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.