Charlie takes out a loan for $5,000 with an annual simple interest rate of 12%. How much interest will the loan accumulate in 4 years? O $1,000 O $1,200 O $2,400 $4,200

Q: 3) Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…

Q: You want to buy a house and will need to borrow $210,000 the interest rate in your loan is 5.35…

A: The objective of this question is to calculate the monthly mortgage payments for a loan of $210,000…

Q: You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: If John deposits $5,000 in a bank account that pays simple interest of 4%, how much will I have in…

A: Data given: Amount deposited= $5000 Interest=4% p.a. t=7 years

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…

Q: You borrow $750 from your brother and agree to pay back $850 in 8 months. What simple interest rate…

A: The simple interest rate can be calculated by using the simple interest rate function

Q: You need to have $25000 for a down payment on a house in 5 years. If you can earn an annual interest…

A: Concept is of present value. Present value is the current value of a future cash flow at a specified…

Q: Simple interest amortized loans Find the monthly payment and total interest Wade buys a new car…

A: Using the PMT function

Q: 4. You are buying your first house for $140,000, and are paying $25,000 as a down payment. You have…

A: Buying a house requires large amount of money. As individuals usually do not have such large sums of…

Q: Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took…

A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: Sonia buys a house for $250,000. she makes a down payment of 15% of the purchase price and takes a…

A: Cost of house = $ 250,000 Down payment = 15%

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: Larry Davis borrows $87,000 at 11 percent interest toward the purchase of a home. His mortgage is…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Patrick Cantlay just purchased a home for $500,000. His mortgage is a 30-year mortgage, that…

A: Mortgage loans are secured loans in which a home is collateral and are paid in equal monthly…

Q: You buy a $225,000 house and take out a loan that covers that amount which charges 4.5%, compounded…

A: Given data; Loan amount = $225,000 interest rate = 4.5% frequency of compounding = monthly Life of…

Q: How much would you need to deposit in an account now in order to have $20,000 in the account in 4…

A: Interest rate = 5%No. of years = 4FV = 20000

Q: A man buys a house for a $245,000. He pays $70,000 down and takes out a mortgage at 5.1% for 25…

A: Given: The cost of house = $245,000 Down payment on house = $70,000 Mortgage rate = 5.1% Time period…

Q: You have $25,000 available for a down payment on your new home. You have determined that you can…

A: Down Payment = 25,000 Monthly Payment = 1,250 Rate = 4%/12  per month Time Period (N) = 360 months…

Q: To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4%…

A: Here, Loan amount = $163,000 Rate of interest = 3.4% Number of year = 30 years Monthly payment of…

Q: You lend a friend ​$13,000​, for which your friend will repay you ​$49,591 at the end of 6 years.…

A: Interest rate = (Future value / Present value)^(1/Time) - 1 where, Future value = $49,591 Present…

Q: You take out a 5-year car loan with monthly payments of $425. The interest rate for the loan is…

A: To calculate the total interest paid over the life of a loan, we need to determine the total amount…

Q: If Greg borrows $140.00 from the bank at 6.5% exact simple interest, how much interest does Greg owe…

A: The simple interest can be computed using the principal amount, the time period, and the interest…

Q: b. You have a $20,000 note payable which is due in three years. How much money must you put into a…

A: Solution d: N = 1 PV (Future value of at the end of 3 years) = $20,000 Interest rate (I) = 3%

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

Q: Beatrice takes out a 7 year loan of $5000. The interest rate is 4.5%. What are Beatrice's monthly…

A: In order to find the monthly payment one can use excel and in excel use PMT function.

Q: You take out a mortgage for $320,000 at 3% compounded monthly. What are your monthly payments if the…

A: Mortgage (P) = $320,000 Monthly rate of interest (r) = 0.0025 (0.03 / 12) Monthly Period of mortgage…

Q: diego took out 3 year loan for 9,000 that has a 14.3 % simple interest     c) How much total…

A: We have to find the total interest that accumulates on a loan.

Q: Jorge is buying a new car for $24,750. Compare the two loan offers by finding the monthly payments…

A: Purchase Price of Car = 24750 Two loan options evaluated below

Q: which formula 2.Jacob borrows $3,000 at 5% exact interest for 540 days. How much does he need to pay…

A: Simple interest is calculated on the principal using the given rate of interest for the required…

Q: You bought a house for $500,000 with a 30 year bank loan that has quarterly payments at an interest…

A: The objective of this question is to calculate the remaining balance on a loan after a certain…

Q: Lin took a loan of $10000 from Vancity credit union, the interest rate is 12% compounded monthly.…

A: A loan refers to a contract where a borrower receives a sum from a lender on the promise that they…

Q: 5) George wants to purchase a new house that costs $185, 500. The terms of the sale are 10% down…

A: Cost of house = $185,500Downpayment = 10%Loan interest rate = 5.75%Term of loan = 30 YearMonthly…

Q: car for $18,500. Compare the two loan offers by finding the monthly payments for each and…

A: Loans are to be paid equal monthly payment that carry the payment for interest and payment for…

Q: Noor is buying a home with a $200,000 mortgage using a 5.5 percent, 30-year loan. How much of the…

A: Mortgage$200,000Interest rate5.50%Loan period30Payment per 1000$5.6779

Q: Whiskers wants to buy a $400,000 house. She plans to pay $80,000 down and make monthly payments for…

A: True interest rate is the effective interest rate paid on borrowing a loan.

Q: Question 5: JJ takes out a conventional loan to purchase a car. The interest rate is 6.8% compounded…

A: Loan amount=$10000Interest rate=6.8%Period=6 years=72 months.Calculate monthly payments.

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.