Grandin wishes to take out an installment loan to finance the purchase of a small antique dining set costing $75,500. Her loan requires a 22.5% down payment and equal payments of $2,567 for 40 months. What is the amount of the finance charge on this loan? $40,880.64$42,995.27 $44,167.50$45,650.00

Q: years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

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

A: Closing cost = Remaining down payment + closing expenses + discount points

Q: Sandy is buying a new chair for $36,425, including a shipping charge of $1300. She is considering…

A: Present value of annuity is the stream of cash flows that are required to be invested today in order…

Q: Farmer Ty needs to finance a machinery purchase of $70,000. His lender requires a down payment of…

A: Loan installment is that amount which is paid every month/ every year depend upon the terms which is…

Q: The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%,…

A:

Q: Lauren and Serena each have 59-week loans. At the end of their terms, they each repay $3,800.…

A: The major difference between a simple interest rate & a compound rate is that the interest…

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: Bea Fehr requires a personal loan to purchase appliances that cost S5000. She meets with the loan…

A: Cost of Equipment is  $5,000 Time period of loan is 3 years Interest rate of Institution- A is 934%…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,100. Her…

A: Introduction: Installment: Its a method of payment paying monthly , semi annually , annually etc.

Q: Dan buys a property for $280,000. He is offered a 25-year loan by the bank, at an interest rate of…

A: Loan amortization is the systematic process of gradually reducing the outstanding balance on a loan…

Q: Dagmar has a 4-year car loan at an annual interest rate of 7.5%. She has made 26 payments of…

A: Total number of payment over the entire duration of loan = Number of years×Number of months in a…

Q: Stacy took out a loan for $15,000. Her note was for 300 days at 5% ordinary interest. On day 100 she…

A: The formula for calculating simple interest Simple Interest(I) = P*r*t Where, I = Interest Amount P…

Q: John bought an expensive $2,740 stereo.  He took out an amortized loan for the full amount at 3.12%…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

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

A: Home cost = $260,000 Maturity = 15 years Interest rate = 8% Deposited amount = $20,00 Expenses:…

Q: Barbie is going to borrow $5,000 to help write a book.  The loan is for one year and the money can…

A: Option 1: 1 year loan borrowed at prime rate = 11%Effective interest cost = 11%Option 2: 1 year loan…

Q: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

Q: 19. Lola Samaria would like an installment loan of $1,200.00 for auto repairs. Walton Savines and…

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

Q: Ellery purchases a home with a loan of R149 000. The 30-year loan term and 7,5% interest rate apply…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: A Hepplewhite sofa costs $3,200 in cash. Jaquanna Wilson will purchase the sofa in 24 monthly…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Borrower Joe has an existing loan that requires 15 more years of monthly payments of $1,040. He is…

A:

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: 8. Joseph borrowed a single-payment loan of $12,000 at an interest rate of 15%. The term of the loan…

A: For calculating exact interest, 365 days for normal year and 366 days for leap year will be taken as…

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: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed…

A: Particulars Amount Down payment amount (220,000*25%) $           55,000 Add :   Financed…

Q: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed…

A: The costs expended for legal services rendered by a licensed lawyer or law firm are referred to as…

Q: Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized…

A: Here, Value of Car is $16,447.22 Down Payment is 10% Interest Rate is 11.5% Time Period is 4 years

Q: will owe $6,050 to repay a personal loan she took out to go on vacation. The loan was for a term of…

A: In simple interest there is no interest on the interest and there is interest on the principal…

Q: Tim Huston purchased a wall unit for $2,200. He made a $600.00 down payment and financed the balance…

A: An asset purchase has been financed by loan. The loan is amortized by a monthly payment. We have to…

Q: Alexei finances her purchase of a $900 television. Her one-year loan has a fixed annual interest…

A: We need to use loan amortization formula to calculate monthly payment. M =P*rn1-1+rn-n*t where…

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

A: Price of Home = $260,000 Down Payment = 25% Down Payment Amount = $65,000 Financed Amount = Loan…

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.