Devon takes out a loan of $1500 at 6 1/2 % simple interest for 56 months. What is the maturity value of 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: wer takes out a 10-year mortgage loan for $300,000 with an interest rate of 7%. What portion of the…

A: Interest payments:Interest payments refer to the amount of money that is paid by a borrower to a…

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: You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the…

A: The objective of the question is to calculate the amount of interest paid in the second year of an…

Q: Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest…

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

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: Suppose you want to apply for a loan of $500,000 with repayment tenure of 5 years. The interest rate…

A: The objective of the question is to calculate the Annual Percentage Rate (APR) of the loan. The APR…

Q: Original Terms of Loan:  30 year loan of $127,800 at an interest rate of 6 ½ %. What is the monthly…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: A borrower takes out a 30-year mortgage loan for $100,000with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

Q: What is the simple interest rate on a loan of 2,000.00 that was paid 2,600.00 after 2 years and 6…

A: Interest = Amount - Principal Interest = 2,600 - 2,000 Interest = 600 Time = 2 years 6 months = 2.5…

Q: What is the maturity value of a $7,500 loan for 16 months at 4.8% compounded monthly? Also. how much…

A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…

Q: Jack borrows $7,000.00 at an interest rate of 15% compounded monthly to be paid off monthly payment…

A: Answer Correct option $6,467.70

Q: Find the length of the loan in months, if $800 is borrowed with an annual simple interest rate of…

A: Time value of money concept says that a sum of amount invested today will have more value in future…

Q: You take out a loan of $1,250 under simple interest with 4.28% APR. The term of the loan is four…

A: Information Provided: Loan amount = $1250 APR = 4.28% Term = 4 years

Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT…

A: Loan amount = P80,000 Annual interest rate = 0.10 or 10% Annual period = 1.5 (i.e. 18 / 12) Amount…

Q: Compute the simple interest of a loan amounting to P50,000.00 payable in 8 months if the interest…

A: Simple Interest:   Simple interest is a method of calculating the interest that is charged on fixed…

Q: How much interest will you pay on a loan of $15 500 if you are paying the loan off in 9 months? Your…

A: On the income statement, the expenditure for interest is categorized as a non-operating item. It is…

Q: You plan to borrow $46,400 at a 7.6% annual interest rate. The terms require you to amortize the…

A: Loans are paid by the equal annual payments and these payments carry the payment for interest and…

Q: 0. Devon takes out a loan of $1,500, at  5 1 2%  simple interest, for 53 months. What is the…

A: Maturity value can be calculated by using this equation  Maturity value =Principal*(1+rate*time)

Q: Julius takes out a loan of $8500 at 9.5% simple interest for three months. What is the maturity…

A: How to calculate the maturity value of the loan:Formula:Simple Interest (SI) = Principal (P) × Rate…

Q: How much is your loan payment based on the following: Time - 5 years Interest Rate - 5.8% Principle…

A: Time Period = 5 yearsInterest rate = 5.8%Principal Balance = $ 28,000Discount Rate = 4.2%

Q: A borrower takes out a 30-year mortgage loan for $150,000 with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

Q: You plan to borrow $37,200 at a 7.2% annual interest rate. The terms require you to amortize the…

A: - Loan Amount = $37,200- Annual Interest rate = 7.20% per annum- Number of equal end of year loan…

Q: A) Calculate the final loan amount of a $500 credit card loan with a 16% compound interest rate,…

A: In order to calculate the final loan amount, we will use the formula of compound interest in order…

Q: You plan to borrow $47,400 at a 7.5% annual interest rate. The terms require you to amortize the…

A: Solution:When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You plan to borrow $43,100 at an 8.0% annual interest rate. The terms require you to amortize the…

A: Given, Loan amount = $43,100 Annual interest rate (r) = 8% Number of years = 7 Annual equal…

Q: Devon takes out a loan of $1,500 at 5.5% simple interest for 53 months. What is the maturity value…

A: Given:  Loan = $1,500 Interest rate = 5.5% Number of months = 53

Q: You plan to borrow $32,200 at an 8.2% annual interest rate. The terms require you to amortize the…

A: A loan refers to a contract between two parties where money is forwarded on the promise of future…

Q: You plan to borrow $40,100 at a 6.9% annual interest rate. The terms require you to amortize the…

A: A loan refers to a contract between a borrower and a lender where money is forwarded by the lender…

Q: You plan to borrow $33,100 at a 7.0% annual interest rate. The terms require you to amortize the…

A: Borrowed amount is $33,100 Annual Interest rate is 7% Time period is 7 years.   To Find:- Interest…

Q: ou apply for a loan of $79,000 with the following terms: a seven-year lo emi-annual payments of…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Jim makes a simple interest loan of $5,800 at 16.35% for 18 months.  Assume the loan period is…

A: Loan Amount = $5,800 Period = 18 Months Simple interest rate = 16.35%   Interest Amount = Loan…

Q: You plan to borrow $33,600 at a 6.5% annual interest rate. The terms require you to amortize the…

A: The objective of the question is to calculate the amount of interest paid in the second year of an…

Q: If you borrow $1,000 at 8.5% simple interest and the loan requires a lump sum payment of $1,213.16,…

A: Interest on Loan = $1,213.16 - $1,000 Interest on Loan =$ 213.16

Q: on the loan? (Round to the nearest cent.) $14,826.11

A: answer Principal amount = $15,500 rate of interest = 14% partly payment  after 40days  partly…

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.