Erica has just purchased a new personality from I Spy a New You, LLC for $1250. She put exactly 25% down and financed the rest for 10 years at 21% APR. She financed _________.The monthly loan payment is_______.She paid_______ interest and________principal at the end of month 2, leaving an outstanding balance of___________. Fill in blanks with solutions without rounding.

Q: Phyllis borrowed $1,000 at 2% APR for six months. Use the simple interest formula to calculate the…

A: Calculation of total amount of interest. Year Principle outstanding at opening (A) Interest…

Q: Liam had an extension built onto his home. He financed it for 48 months with a loan at 4.9% APR. His…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: find her loan payoff amount.

A: Amount financed = $27,500 Number of instalments = 36Monthly payment = $998.61Payment made = 21Total…

Q: Rob, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the…

A: The objective of the question is to verify Rob's calculation that it will take over 67 years to pay…

Q: omplete amo

A: fixed Monthly payment = P*R* ((1+r)^n)/((1+r)^n-1) P= Loan amount R= 5.90%/12= 0.4916% N= 12*0.5= 6…

Q: Caroline borrowed $1,500.00 at 9.00% p.a. She wants to settle this loan with 2 equal payments, one…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Hannah purchased a house for $475,000. She made a downpayment of 25% of the value of the house and…

A: Monthly payment is the payment made by every month that includes the principal and interest amount.

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Sandy Kupchack just graduated from State University with a bachelor's degree in history. During her…

A: In the given question, the amount is to be paid quarterly. Therefore, the effective rate to be used…

Q: Helen contributed $500 at the end of every month for the past 5 years into an RRSP account, earning…

A: Annuity means series of no. of finite payments which are same in size and made in equal intervals.…

Q: Nick received a loan of $5000 from a bank to purchase a bike. He obtained the loan at an interest…

A: Amortization Schedule: The amortization schedule represents a table consisting of periodic loan…

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: The formula for the calculation of APR is as follows: APR=Fees+InterestPrincipalTime period×12

Q: Jane Joy, owner of the Clock Shop, loaned $12,000 to Carol Miller to help her open an Art Shop.…

A: Future value The amount that an investment today will grow at a given interest rate is called its…

Q: Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end…

A: An interest charge is the cost of obtaining or extending credit. The cost of managing the loan, as…

Q: When Albertina opened her law office, she bought $19,000 worth of law books and $7600 worth of…

A: The question is based on the concept of annuity in financial management. Annuity refers to the…

Q: Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay…

A: Borrowed amount = $10,000Interest rate for first 2 years = 4%Interest rate for next 5 years = 3%To…

Q: Leona Jefferson purchased a home and obtained a 20-year loan of $436,750 at an annual interest rate…

A: A mortgage refers to a covered loan that is borrowed for the purchase of a property which itself…

Q: Darla purchased a new car during a special sales promotion by the manufacturer.

A: Interest paid to manufacturer Principal amount (P)=$18,000 Rate of interest (r)=7% per annum Period…

Q: Find the closing costs (in $).

A: Closing Cost: It is  settlement costs. It is the fees  which  is paid  when obtaining  loan and…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

Q: Judy recently purchased her first home for $220,000. She made a down payment of $20,000, and…

A: First we need to calculate PV annuity factor for loan to calculate monthly payment. Since payment is…

Q: Erica has just purchased a new personality from I Spy a New You, LLC for $1250. She put exactly 25%…

A: The monthly payment is the amount that is paid by the borrower to the lender for amortize the loan…

Q: Ashley took out a student loan for $12,544. The loan had annual interest of 6.9%. She graduated five…

A: A subsidized loan is a loan where the government provides the interest on the loan for the entire…

Q: While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of…

A: Solution 1: Ryan's Car PurchaseGiven:Down Payment: $1,200Monthly Payment: $320 for 3 years and 6…

Q: A couple wishes to borrow money using the equity in their home for collateral. A loan company will…

A: Mortgage loans are paid by equal monthly payments that carry the payment for interest and payment…

Q: Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan…

A: Loan is an agreement between lender and borrower where lender agrees to provide funds to borrower.…

Q: simple interest amortized loan for the rest at 6 3/8 % interest for thirty years.

A: Amortized Loans: Amortized loans are loans in which the interests as well as the principle amount…

Q: 1. On Sep and fin: started the mic charges bank o Answ

A: Motorcycle cost$10,000Down payment$1,000Interest rate9.6%Number of years5 yearsNumber of payments…

Q: Amy financed the purchase of her living room suite over two years.  Her monthly payments are $231.02…

A: Part (1) Purchase Price of  Furniture Annual Rate = 19.6% p.a. compounded semiannually Semi…

Q: Marisol finances a sports car for $27,700 by taking out an installment loan for 36 months. The…

A: Amount financed = $27,700 Number of instalments = 36 Monthly payment = $998.61 Payment made = 21…

Q: 1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

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.