Cathy borrowed a student loan for $700 and agreed to pay off the loan $740 one month later. what is the annual interest rate?  assume it's computed using simple intrest

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

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

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…

Q: Jesse borrowed from a bank at 5.92% compounded semi-annually; he settled the loan by repaying $3,055…

A: Interest rate is 5.92% compounded semi-annually Amount repaid is $3,055 every 6 month Time period is…

Q: Gabrielle held a loan of $1,900 for 6 months and was charged interest of $106.40. What was the…

A: Two types of interest calculations are there: Simple Interest = As the name suggest it simply…

Q: Maria took out a loan for $7900 that charges an annual interest rate of 8.8% compounded quarterly.…

A: n=4 r=8.8/4/100=0.022 present value=7900

Q: Daniel paid $825 simple interest on a $1400 loan for five years . What was the interest rate?

A: Given: Simple Interest =$825Principal amount =$1400Time =5 years

Q: On February 1, the home mortgage balance was $278,000 for the home owned by Amy Moore. The interest…

A: The objective of this question is to calculate the amount of interest included in the February…

Q: What was Patrick’s monthly payment?

A: Re-payment of loan is a combination of principal loan amount and interest amount.  Loan is paid as…

Q: Maya borrowed $700 from a lender that charged simple interest at an annual rate of  6%. When Maya…

A: A loan is a borrowing that an individual or entity takes into account. A lender is the other side in…

Q: paying $111 at the end of each month for 6 years. The bank charges interest on the loan at 7.71 %…

A: Monthly payment=$111Number of payment=72Interest rate=7.71%Monthly interest rate=0.6425

Q: Chandrika deposits $500 in an account paying an effective quarterly interest rate 2.01875%. Muhammad…

A: Present Value:  The present value (PV) is the present sum of the future payments. The future…

Q: Zelda borrowed R5760,00  from a bank for 21 months. For the discount loan she only received…

A: In this we have to calculate present value on based on discount rate.

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Future value = Present value ( 1 + rate of interest )Period Future value = Amount deposited * Future…

Q: CJ borrowed from a bank at 3.34% compounded semi-ann $1,049 at the end of every six months for 7…

A: The periodic payments are paid to pay the loan and these periodic payments carry the payment for…

Q: On September 14, Jennifer Rick went to Park Bank to borrow $3,600 at 9.25% interest. Jennifer plan…

A:

Q: Dandil owes two debt payments – a payment of $5323 that was due today and a payment of $1655 due in…

A: Future value is the value of the current investment on some future date at some specific rate of…

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

A: The present value concept is useful for borrowers to assess the affordability of a loan. By…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A couple borrows $935,000 for 7 years for the purchase of a vacation home at interest rate of 7…

A: The objective of the question is to calculate the annual payments on a loan and the reduction in the…

Q: Heather McIntosh recently purchased a home for $175,000. She put $22,500 down and took out a 25-year…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: On March 15th Ron went to the bank to borrow $3,000 at 8.5% interest. Ron plans to repay the loan…

A: Ordinary interest is an interest that is computed on the basis of a 360-day year instead of a…

Q: Joseph used the Quantitative Reasoning Procees to create a plan to pay off his student loans of…

A: Given information: Student loan = $7,680 Monthly Payment = 73.80 Time = 10 Annual interest = 2.9%

Q: Anna has a mortgage of $427,000 through her bank for property purchased. The loan is repaid by end…

A: A mortgage refers to a covered loan that is used to purchase a property with the property itself…

Q: On April 5, 2019, Janeen Camoct took out an 8.5% loan for $20,000. The loan is due March 9, 2020.…

A: The amount of the loan is $20,000 The interest rate on a loan is 8.5% The start date is April 5,…

Q: Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30.…

A: Adjustment Journal Entry for Interest Payment An expense for the firm that occurs during a fiscal…

Q: Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end…

A: An interest charge is the cost of obtaining or extending credit. The cost of managing the loan, as…

Q: Carla borrowed $1,250 from the Royal Bank at 8.78% per annum calculated on the monthly unpaid…

A: Loan = 1250 Interest Rate = 8.78%/12 per month Monthly Payment = 180

Q: Can you please help me work out this problem in detail?   Minnie Rose deposited $15,000 in Street…

A: The question is based on the concept of compound interest calculation with quarterly compounding…

Q: Alexandra took out a mortgage of $791,000 for a house and just made the 79th end of month payment.…

A: A mortgage is a borrowing taken such that regular payments are made to repay the loan. The…

Q: Mary Jones recently obtained an equipment loan from a local bank. Theloan is for $15,000 with a…

A: Given information: Loan amount is $15,000 Nominal interest rate is 11% Loan repayment in 1 year

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: What is the interest paid in the 2nd year of the mortgage?

A: Mortgage refers to a legal contract based upon which a financial institution such as bank grants a…

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.