Consider a student loan of $12,500 at a fixed APR of 12% for 20 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.

Q: You receive a 10-year subsidized student loan of $22,000 at an annual interest rate of 4.3%. What…

A: Using excel PMT function to calculate monthly payment.

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: Compute the compound amount and the interest on a loan of $10,600 compounded annually for six years…

A: Given: Loan = $10,600 Interest rate = 8% Years = 6

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: You have approached your bank for a 30 year mortage loan in the sum of $2,160,000. The bank has…

A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…

Q: A local lending institution advertises the "51-50 Club". A person may borrow $2000 and repay $51 for…

A: P (Present value)= 2000 A (monthly payment)= $51 n (compounding periods)= 50 i%=?

Q: A person borrows 10,000 at an interest rate of 8% per year and wishes to repay the loan over a…

A: As per the given information: The amount borrowed - 10,000 Interest rate - 8% per year Loan period -…

Q: A bank is willing to lend $20,000 for a home improvement loan to be repaid monthly over 5 years…

A: From the question, we can identify the following variables:Principal amount (P): This is the amount…

Q: Safewell Co obtains a discount loan at a 12 percent interest rate.  Safewell borrows $100,000 for…

A: Effective interest rate if the amount of interest rate which is charged on the principal amount…

Q: On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent…

A: Interest received at the end of each year will result in the compounding effect on the deposit at…

Q: What is the actuarial rate for a simple loan of $1,500 that requires a repayment of 2,000 in 5

A: In this we have to calculate effective interest rate by use of present and future value.

Q: Find the amount of the final payment if it is to be larger than the regular payments.

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: monthly. Then compute for the

A: Compound interest is used in case of lump-sum money accumulates in the future if interest is charged…

Q: A loan of $2,000 is paid by the following series of payments, beginning one year after the loan is…

A: Amortization table shows the break up of instalments for the interest charged on the outstanding…

Q: Compute the compound amount and the interest on a loan of $10,500 compounded annually for four years…

A: The computation of compound amount is as follows:Hence, the compound amount of loan is $16910.355.

Q: For a student loan of $20,700 at 2.75% for 20 years, complete the following. (a) Calculate the…

A: Loan amount = $20,700Interest rate = 2.75%Number of years = 20 years

Q: Given the following information, calculate the remaining loan balance after 12 years: loan amount:…

A: Loan amount = $84,000Interest rate = 4.5%Number of years = 20 yearsNumber of years passed = 12 years

Q: You receive a 10-year subsidized student loan of $29,000 at an annual interest rate of 4.8%. What…

A: Loan payments are given by, L = E(1-(1+r)^-n)/r Where, E = payment = ?? r = interest rate = 4.8%/12…

Q: Doreen Short was looking over the repayment schedule for a loan of $37,858 at 7% interest for 5…

A: The remaining balance after making payments for 15 months as the remaining payments will be 45 is…

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…

A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…

Q: A student loan for $32,000 is paid back in monthly payments over ten years with an interest rate of…

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

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: Find the monthly payment for the loan indicated. (Round your final answer to two decimal places.)…

A: Formula to calculate EMI:  EMI= (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] Wherein:  P = Loan…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: A student loan with a simple annual interest rate of 2.5% must be paid back in ten years. A student…

A: Given data, Interest rate(r)=2.5% or 0.025 per annum Total interest(I)=P2,000 Time(t)=10 years

Q: Set XYZ as the last three digits of your student number. Construct an amortization schedule for a…

A: Amortization Schedule: It is a table containing periodic loan payments, interest paid, principal…

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

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

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

A: Here,

Q: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book…

A: Payment = p = $47,100Number of Payment = n = 6Interest Rate = r = 12%

Q: You need additional cash for the payment of your tuition fee and other expenses for your studies.…

A: Solution:- When a loan is taken, it can be either repaid as a lump sum payment or in installments.…

Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…

A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment

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.