Heather took out a loan for 7 months and was charged simple interest at an annual rate of 7.2%. The total interest she paid on the loan was $231. How much money did Heather borrow? Do not round any intermediate computations. If necessary, refer to the list of financial formulas. $] X 5 ?

Q: What is the finance charge (in $) on the loan? $   (b) Use Table 13-1 to find what annual percentage…

A: Finance Charge: It is the cost in relation to borrowing money or the payment of any loan…

Q: Katherine Hunt is evaluating her debt safety ratio. Her monthly take-home pay is $3,160. Each month,…

A: The safety ratio, often used in personal finance and investment, is a financial metric that assesses…

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: Sarah graduated from college with $29000 in student loan debt. The annual rate on her loans is 6…

A: Calculate the total interest paid over 5 years:Total interest paid over 5 years = Principal *…

Q: Karen obtained a $36,000 loan at 3.5% compounded semiannually. a-1. What monthly payment will repay…

A: Here, Loan amount = $36,000 Interest rate = 3.5% compounded semi-annually Time = 8.5 years To Find:…

Q: What was Patrick’s monthly payment?

A: Re-payment of loan is a combination of principal loan amount and interest amount.  Loan is paid as…

Q: Maya borrowed $700 from a lender that charged simple interest at an annual rate of  6%. When Maya…

A: A loan is a borrowing that an individual or entity takes into account. A lender is the other side in…

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: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed…

A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11

Q: Jillian and Collin borrowed $62,000 at 7.61% compounded monthly as a second mortgage loan against…

A: A mortgage is a covered loan taken to purchase a property with the property itself acting as…

Q: Vanessa initially borrowed $6,400 from RBC Bank at 3.64% compounded semi-annually. After 4 years she…

A: The future value function can be used to determine the future value of a sum at a given discount…

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

A: Mortgage Amount = $296,000Interest rate = 6.36%Period = 16 Years

Q: Carie purchased a car for $49,000; she paid $4900 as a down payment and financed the balance amount…

A: Present Value= the financed amount after the down payment= 49000-4900= 44100Payment per period can…

Q: CJ borrowed from a bank at 3.34% compounded semi-ann $1,049 at the end of every six months for 7…

A: The periodic payments are paid to pay the loan and these periodic payments carry the payment for…

Q: o help open up a jewelry store, Kaitlin borrowed money from her credit union. She took out a…

A: Time value of money is used to calculate the monthly instalments, rate of interest, total amount to…

Q: Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as…

A: Loan:A loan is an amount of money given by one party typically a financial institution to another…

Q: Evaluating debt burden.  Ted Phillips has a monthly take-home pay of $1,685; he makes payments of…

A: Debt-burden is the cost of serving debt. It is the cost of interest payment of credit cards,…

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

Q: Interest Earned. On June 1, Mia deposited $2,700 in an MMDA that pays 4% interest. On October 31,…

A: Money market scheme refers to the mutual fund type which is used for the investment purpose in cash,…

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: Dave took out a $5700 loan at 14% and eventually repaid $8892 (principal and interest). What was the…

A: STEP 1 The amount that a depositor is expected to earn on a principal sum at a predetermined rate,…

Q: 2. Simple versus compound interest Financial contracts involving investments, mortgages, loans, and…

A: The idea of the time value of money (TVM) holds that a quantity of currency is considerably more…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: finance charges refer to the fees or interest that a borrower pays to a lender for the use of credit…

Q: Gabrielle received a loan at 6% p.a. simple interest for 8 months. If he was charged an interest of…

A: Interest rate = 6%Number of periods = 8 monthsInterest received = $272.00

Q: Dave took out a $6200 loan at 14% and eventually repaid $10,540 (principal and interest). What was…

A: Future value of amount includes the original amount and amount of interest being accumulated over…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: The Annual Percentage Rate (APR) is similar to the interest rate. It is on a yearly basis that is…

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest…

A: Here, Principal “P” is $900 Simple rate "r" is 7% Number of years “t” are 13

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.