Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He is expected to pay off his loan in 15 years. Round answer to two decimal points a. Under the current terms of his loan what is Derricks minimum payment? b. What is the total amount Derrick will pay when the loan is complete? c. How much will Derrick pay in interest? d. Derrick wants to pay more than the required monthly amount for his loan. Assuming the same conditions of the original student loan what would Derrick new monthly payment would be if he pay off loan in 10 years e. What is the total amount Derrick will pay if they pay off the loan in 10 years? f. With the 10 year loan how much will Derrick pay in interest?

Q: Ryan obtain a nine year subsidized loan of $26,000 at an annual interest rate of 4%. If Ryan…

A: Here, Loan Amount is $26,000 Annual Interest Rate is 4% Income Adjusted Repayment is $275 per month

Q: Tomás bought a house with a mortgage of $328,300. The mortgage is being finance interest rate of…

A: loans are paid by the monthly payments and these payments carry the payment of loa amount and…

Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Michael has a credit card debt of $70,000 that has a14​% ​APR, compounded monthly. The minimum…

A: Part 2: Explanation:Step 1: Calculate the monthly payment \( P \) for the old credit card with a 14%…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1…

A: using excel NPER formula to calculate the time taken to repay the loan amount…

Q: Pete Leary wants to attend College. Seven years from today he will need $30,000. If Pete's bank pays…

A: Present value refers to the current amount of the future payment in a specified period of time. It…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: Amortization of loan refers to the equal and regular installment repayment of a loan spread over the…

Q: To go on a summer trip, Keith borrows $600. He makes no payments until the end of 2 years, when he…

A: When we talk about simple interest rates, we're talking about a straightforward technique of…

Q: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

Q: Alex estimates that he will have $47,500 in student loans by the time he graduates. The interest…

A: Here, Present Value is $47,500 Interest Rate is 7.2% Therefore, the Monthly Interest Rate is : Time…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: Data given: Offer 2: PV=Loan amount=$16000 PMT=$4200 Rate=16%   Required: Time required to payoff…

Q: Taylor will make payments of $150 at the end of every month to settle a loan of $1,300 at 5.10%…

A: Montly payment(PMT) = $150 Loan Amount = $1,300 Rate = 5.10% Compounded semi- annually

Q: Jeffrey Wei received a 6 year non-subsidized student loan of $30,000 at an annual interest rate of…

A: Present Value = $30,000 Interest Rate = 5.9% Time Period= 6 Years Loan Start after 4 Years

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: 1. Phil Nelson anticipates he will need approximately $227,000 in 11 years to cover his daughter's…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Larry has decided to take out a loan for college. He expects to graduate 5 years and 6 months later…

A: Interest rate is the rate of interest earned/paid on an investment/loan. The interest will be paid…

Q: at minimum down payment must Asher make to keep his monthly payment at or below $500? und your…

A: Monthly payment of loan includes the payment of principal and interest payment that goes on changing…

Q: Willie Wilson plans to borrow $21, 185 at the beginning of each of his 4 years of college. He will…

A: Step 1: Given Value for Calculation Present Value of Borrowing = pv = $21,185Time = t = 4…

Q: Aidan wants to pay off the loan on his refrigerated trailer on which he has made 15 payments. If…

A: When a series of equal periodic payment is made against a loan, it is termed as annuity. This…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: The loan amount is equal to the present value of the annual repayments made over the period of the…

Q: Implied interest rate and period Consider the case of the following annuities, and the need to…

A: Loans ar paid by equal periodic payments and these payments carry the payment for interest and…

Q: Create an Amortization schedule-see amortization video. How much student debt will I bear by the…

A: The Loan amortization refers to the systematic equal payment of loan and interest spread over a…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: To calculate the annual interest, you need to find 23% of the loan amount. The loan amount that Phil…

Q: Tom takes out a loan for $15,000 at an APR of 6% to start out his business. He promises to make…

A: GIVEN, P=$15,000 R=6% M=4 N =10 YEARS

Q: Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan…

A: The given payments are a form of annuity wherein an equal payment is made at eqaul intervals. The…

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.