Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing the interest payment and loan balance each month. Verify that with monthly payments of $88.67, the loan balance reaches $0 after 120 months.

Q: Find the future (FV) of a loan of a $6,100 loan at 7.5% for 9 months. (Assume simple interest and…

A: One way to figure out the interest on a loan or investment is with simple interest. It is referred…

Q: A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is…

A: Loan Amount = Monthly payments * [ 1- [1/(1+r)^n ] / r  where r is the monthly rate = 3/12 = 0.25  n…

Q: An ARM for $101,800 is made at a time when the expected start rate is 5 percent. The loan will be…

A: PMT function in excel is used to calculate monthly payments, where PV is the loan balance on start…

Q: Find the exact interest on a loan of ​$6000 at 8​% annually for  50 days.

A: Principal loan amount = 6000Number of days = 50Interest rate = 8%/100 = 0.080000 in decimalTotal…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $500 loan for 12…

A: The monthly payment for the loan can be calculated with the help of present value of annuity…

Q: Find the monthly payment for a bank loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Answer  Principle amount = $100 Interest rate =12% Time = 12 months

Q: Prepare the amortization schedule for a fifteen-year loan of $100,000. The APR is 3% and the loan…

A: Before preparation of first, we have to find the monthly installment and the monthly installment is:…

Q: Determine the monthly payment if you take out a loan for $ 330000 with an annual interest rate of…

A: in this we have to calculate present value FACTOR and than find out monthly payment.

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Loan Amount = 1,000,000 Interest Rate = 10% Time Period = 60

Q: Show your financial calculator inputs for the payment calculation.

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Monthly payment: It is the payment paid by the loan holder to the lender every month in order to…

Q: Assume that you take out a $7000 loan for 46 months at 7.5% APR. How much total interest will you…

A: Loan: It is the amount of money borrowed from a person or bank or company for a certain period…

Q: Determine the monthly payment if you take out a loan for $ 220000 with an annual interest rate of 9%…

A: Given information: Loan amount is $220,000 Annual interest rate is 9% Number of years is 15 years

Q: Cray Computing needs a 5-month loan for $300,000. Its bank quotes a simple interest rate of 15% on…

A: Therefore, the estimated APR for the loan, assuming monthly compounding, is approximately…

Q: A loan of $10,000 today is to be repaid by annual payments of $800 to commence one year from now and…

A: Final payment:The "final payment" represents the concluding installment in a series of financial…

Q: Using the simple interest method, find the monthly payments on a $2,000 installment loan if the…

A: Simple interest refers to the method of interest calculation where the principal amount remains the…

Q: Develop a general-purpose spreadsheet to calculate the balance due, principal payment, and interest…

A: workings:

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: Complete the first three lines of an amortization schedule for the following loan: You borrow $…

A: Given:

Q: Complete the first three lines of an amortization schedule for the following loan: You borrow $ 5000…

A: Monthly payments for amortized loan…

Q: Suppose you have a student loan of $35,000 with an APR of 12​% for 30 years.   The required…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Extra # 3. Suppose you borrow $250,000 as a mortgage at annual effective rate of 7.5%. Equal…

A: The payment made towards a loan consists of both interest as well as principal. The interest amount…

Q: Construct an amortization schedule for a 15-year, $300,000 loan with a 4.2% interest rate compounded…

A: Amortization schedule refers to the statement showing the details of the loan amount, interest…

Q: , find the monthly payments or

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: compute the initial value of the money if the borrower needs deposit the accumulated amount of…

A: With the application of time value of money, we can compute the initial deposit which will become $…

Q: n is to be repaid over 30 years, with month-end repayments of 5,000. If the interest rate is 4.1%…

A: Loans are to be paid by equal fixed monthly payments and these monthly payments carry payment for…

Q: Find the exact interest on a loan of $8,000 at 8% annually for 60 days. $ (Round to the nearest cent…

A: Interest Amount = Amount of Loan x Interest Rate x Time (in years)

Q: Consider a student loan of $25,000 at a fixed AP a. Calculate the monthly payment. b. Determine the…

A: Loan amount = $25,000Interest rate = 9%Number of years = 30 years

Q: Consider a home mortgage of $225,000 at a fixed APR of 4.5% for 30 years. a. Calculate the monthly…

A: Mortgage type of loan is backed by some collateral  security against the loan. It is a secured loan.…

Q: Complete the following from the first three lines of an amortization schedule for the following…

A: A loan is a contract between two parties where one party forwards an amount to the other one based…

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.