Charles has just taken on the conditions of the loan, he must make payments of $1,200 per year for 15 years in order to repay the full amount of the loan. How much money did Charles borrow? $8,173.04

Q: How much should Cristy pay today to clear her loan?     Select one: a. $5384.26 b. $2554.13 c.…

A: Future Value = A x (1 + r)^n Here, A = Amount Borrowed i.e. $4800 r = Periodic Interest Rate i.e. 7%…

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: Tom borrowed $80,000 at a rate of 6.5% from bank for his new house. This is a 30 year monthly paid…

A: Given, Tom borrowed = $80,000 Rate= 6.5% Time period= 30 year

Q: Jeffery Wei received a 7 year non Subsidized loan of 32000 at an annual interest rate of 5.2%. What…

A: In a non-subsidized loan, the interest on the original loan granted is calculated at simple interest…

Q: Rhett is about to begin college (4-year) and has received a 10-year $7,500 Federal Direct…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Sally borrows $25,000 for a loan, and she repays the loan by making quarterly end-of-quarter…

A: The principal amount is $25,000.The quarter payment is $650.The maturity of the loan is 15

Q: Greg borrows $881,000 to buy a house. His mortgage requireds 22 years of monthly payments, with the…

A: The scenario requires identifying the amount required to be paid after the 36th monthly payment. It…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: Mason borrows $41,217.00 to buy a car. He will make monthly payments for 6 years. The car loan has…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Dominique has a mortgage of $445,000 through his bank for property purchased. The loan is repaid by…

A: Any sum borrowed to meet any specific personal or business needs is regarded as a mortgage/loan. The…

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

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was…

A: Mortgage loans are paid by equal periodic and fixed payments and these carry the payment of interest…

Q: Jack borrows $28,163 to pay for a car. The loan carries an annual rate of 5.7% and he wants to be…

A: ANSWER: Interest on loan = $6,021.6163328  (or) $6,022 EXPLANATION:- Present Value (PV) = $28,163…

Q: total interest

A: Mortage is defined as the type of loan wherein the loan is taken between two or more parties.…

Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…

A: The proceeds would be the difference between Present value at new terms and old terms. and we  will…

Q: Your cousin's student loan totaled $45,000 when he graduated. After making payments for the last 2.5…

A: The current loan amount would depend upon the interest rate, the time period, and the monthly…

Q: Gary purchased a house and obtained a 30 - year loan of $250,000 at an annual interest rate of 6.75%…

A: Using excel PMT and PV function

Q: Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both…

A: Simple interest does not involve compounding and no interest on interest is considered.

Q: Alec bought a home for $179,000. He had a $50,000 down payment and got a 30-year fixed rate mortgage…

A: Mortgage is a value which is borrowed from the external sources like banks for the particular period…

Q: Akbar bought a car on loan and pays the simple interest at 5% amounting to RO 3,000 per annum for 5…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: If Phil borrows $40,000 from a loan company at an interest rate of 6.5% per year compounded weekly,…

A: Here, Loan amount = $40,000 Quarterly payment of the loan = $800 Interest rate = 6.5% compounded…

Q: Christopher just borrowed $19,500.00 to buy a used minivan. The terms of the loan require him to…

A: Amount borrowed, pv $ 19,500.00Equal monthly payments, pmt $       340.10Period (years), nper6Extra…

Q: Edward borrowed an amount to his friend and promised to pay the principal amount and accumulated…

A: Let the amount borrowed be "x" Simple rate = 15.118% Amount paid at the end of 3 years = P15.855.…

Q: Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not…

A: Compound interest can be defined as the addition of interest to the principal balance. It can be…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: Homer promises to pay $1,000 at the end of 6 months in obtaining a loan from a banker who charges 6%…

A: Loan amount (PV) is $1,000 Loan Period is 6 months Interest Rate charged in advance is 6%  (We…

Q: takes out a $6,000$6,000 personal loan to make home repairs. His interest rate is 12%12% on a…

A: Interest is amount paid to the borrower above the amount of loan being taken and that depends on…

Q: Alec bought a home for $202,000. He had a $48,000 down payment and got a 30-year fixed r mortgage at…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay…

A: Borrowed amount = $10,000Interest rate for first 2 years = 4%Interest rate for next 5 years = 3%To…

Q: Jim invests $15,000 today into an account, If the amount in the account accumulates to $17,364.37 at…

A: The rate of interest can be computed with the help of future value function.

Q: imana wants to buy a two bedroom apartment in Rockycrest for N$680000. he is expected to pay 9%…

A: To calculate the total amount of money Imana will pay to the bank over 22 years, we need to break…

Q: Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both…

A: We have to consider present value and future value of both.

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…

A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

Q: ohn has just borrowed an amount of K5,000 to pay his school fees. The loan is to be repaid in equal…

A: Loans are paid by the annual payment that carry the payment of loan and payment of interest also but…

Q: Milo borrows $5.000 from an institution that charges 8.5% interest per year. How much more will Milo…

A: Loan are amount borrowed from the financial institution and is the amount charged above the loan is…

Q: Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: will owe $6,050 to repay a personal loan she took out to go on vacation. The loan was for a term of…

A: In simple interest there is no interest on the interest and there is interest on the principal…

Q: PART B.) George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) many…

A: Any sum borrowed to meet specific personal or business funding needs is recognized as a…

Q: John has 1 mil dollars. John got a mortgage for a 1 mil dollar house bought with a 10% downpayment,…

A: Given, Prime rate at the beginning= 1.5% and annual increase= 0.25%  Therefore, interest rates for…

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.