company makes payments of $1,600 at the end of every month, how long will it take to settle the loan?

Q: Lush Gardens Co. bought a new truck for $68,000. It paid $6,800 of this amount as a down payment and…

A: Here, Particulars Values Price of new truck  $ 68,000.00 Down payment  $6,800.00 Loan…

Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…

A: Short term loan: Short-term loans are borrowed funds used to fulfill immediate liquidity demands,…

Q: An installment contract for the purchase of a car requires payments of $311.25 at the end of each…

A: The amount financed for the car is approximately $16,900.60. The total interest cost over the 5…

Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…

A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…

Q: A repayment schedule has been drafted by an organization in order to manage debts. Payments will be…

A: Deferred debt refers to a type of liability that has been postponed to a future date. It typically…

Q: You borrow $500,000 from a bank to buy a $600,000 building. You amortize the loan (annually) over 25…

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

Q: A company financed the purchase of a machine with a loan at 2.5% compounded monthly. This loan would…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Your business requests a 3-month loan for 50,000. What will be the interest paid at the end of the…

A: The amount of interest paid is calculated as shown below.

Q: BALR Corp.borrows $600,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan payments are semiannual. Thus, the semiannual interest rate should be considered i.e. 6%/2=3%.…

Q: Paul obtained a loan of $37,500 at 4.60 % compounded monthly. How long will it take to settle the…

A: Loans have to be paid off in the form of fixed periodic payments. Here the loans are being paid in…

Q: You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24 equal…

A:

Q: For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if…

A: A loan is a contract between two parties where an amount is forwarded on the promise of repayment…

Q: Cray Computing needs a 8-month loan for $300,000. Its bank quotes a simple interest rate of 12% on…

A: Simple interest: $24,000APR (assuming simple interest): 8%Effective APR (considering compensating…

Q: Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash…

A: Cash flow in year 0=-$44,500,000Cash flow in year 1=$70.500,000Cash flow in year…

Q: Please answer with details on how to do it. Thank you.  A company borrows $ 100,000 today at 6 %…

A: Annuities seem to be interest-bearing financial products that offer a steady steady flow of income…

Q: Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest…

A: Effective rate refers to the actual interest rate earned or paid after taking into account…

Q: An installment contract for the purchase of a car requires payments of ​$217.43 at the end of each…

A: Interest expenses The amount that the borrower pays for the funds borrowed is called the interest…

Q: What is the payment in month 13 on a CAM loan for $150,000 with a maturity of 15 years at 5.85%?…

A: Debt refers to the owed capital that the corporations or individuals employ, it requires the…

Q: An engineering firm can pay for its liability insurance on an annual or monthly basis. If paid…

A: Effective interest rate=1+rnn-1

Q: You are late paying a bill for ​$10,649.04. You have made arrangements to pay off the bill in…

A: Present Value = pv = $10,649.04Monthly Payment = p = $260Interest Rate = r = 1.5%

Q: (a) How many payments are needed to repay the debt? (b) What is the size of the final payment?

A: First we need to determine the equivalent interest rate as the compounding rate and period are…

Q: You borrow $64,000 in the form of an unsubsidized loan at 3.98% APR. How much money do you owe when…

A: Given: Loan amount = $64,000 APR = 3.98% Period 6 months

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Someone buys a car for 12,000$ and puts 25% down. They then get a simple interest amortized loan for…

A: APR: Annual percentage rate includes fees and additional costs related to the loan processing. It is…

Q: cover

A: Time period to arrive at these costs can be calculated by using simple payback method: Payback…

Q: A house costs $147,000. It is to be paid off in exactly ten​ years, with monthly payments of…

A: Given information: Cost of house is $147,000 Monthly payment is $1,783.52 Number of years is 10

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: A loan of P15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due…

A: Notes Payable - Notes Payable is the liability for the company which needs to be paid after a fixed…

Q: An installment contract for the purchase of a car requires payments of ​$206.33 at the end of each…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

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.