how much would you save or lose by taking the debt consolidation company’s offer?

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

Q: Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 14.9…

A: Compound = monthly  = 12 Present value = pv = $6200 Interest rate = r = 14.9 / 12% Payment = p =…

Q: ou borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23…

A: Loans are paid in equal monthly installments and these carry the payment for interest and payment…

Q: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: A friend asks to borrow $53.00 from you and in return will pay you $56.00 in one year. If your bank…

A: Present value refers to the discounted value of future cash flows.future value is the compounded…

Q: You have been accepted into college. The college guarantees that your tuition will not increase for…

A: Understanding the Problem:You've been accepted into college, and the college has guaranteed that…

Q: The final payment the bank will require you to make is $ (Round to the nearest dollar.)

A: Information Provided: Annual payments = $8000 Interest rate = 6%

Q: You have been accepted into college. The college guarantees that your tuition will not increase for…

A: Money deposited today$81488.35Explanation:Step 1:We have to calculate the money we must deposit…

Q: You have been accepted into college. The college guarantees that your tuition will not increase for…

A: We need to calculate the present value of all collage fee by using this formula Present value…

Q: A student graduates from college with 48000 in student loans with a 5.5% annual simple interest…

A: In the given question we require to calculate the amount of loan due after the first payment.…

Q: You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage…

A: The long-term loan that is taken by an individual person or an organization for the purchase of a…

Q: You have been accepted into college. The college guarantees that your tuition will not increase for…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

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

Q: To go on a summer trip, Bob borrows s700. He makes no payments until the end of 4 years, when he…

A: The total interest to be paid is calculated as simple interest amount for 4 years whereas total…

Q: have an outstanding student loan with required payments of 550 per month for the next four years.…

A:

Q: the amount financed the finance charge The deferred payment price.

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: A student graduates from college with $31,000 in student loans with a 5.6% annual simple interest…

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

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: given PMT = 500 r= 9/12 = 0.75% per monthn=12*4 = 48present value of the payment PV =…

Q: Scarlett borrowed $ 1,900 from a local payday lender and signed a debt contract requiring her to pay…

A: The annual percentage rate is a simple rate that does not include compounding however the effective…

Q: semiannual compounding) guaranteed to remain the same over the next four years. How much money must…

A: Information Provided: APR = 3.6% compounded semi-annually Total number of payments = 8 Size of…

Q: The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to…

A: Maximum amount to borrow = Remaining balance for monthly payments/ current mortgage rate

Q: Marcia Rodger borrowed $3,500 from Valley Bank at a rate of 9%. The date of the loan was October 10.…

A: In a case of borrowing, we need to find the interest using ordinary method and exact method. We then…

Q: You have been accepted into college. The college guarantees that your tuition will not increase for…

A: Present value of annuity formula.PV = A * wherePV = Present value of annuityA = periodic paymentsr =…

Q: You have a loan outstanding. It requires making eight annual payments of $3,000 each at the end of…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You have a loan outstanding. It requires making seven annual payments of $6,000 each at the end of…

A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…

Q: You have an outstanding student loan with required payments of $600 per month for the next four…

A: The real interest rate, often called the effective annual return (EAR), is an important financial…

Q: You have an outstanding student loan with required payments of $825 per month for the 42 months. The…

A: Monthly payment refers to the equal payments that are required to be paid by the borrower to the…

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You have a loan outstanding. It requires making seven annual payments of $6,000 each at the end of…

A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…

Q: borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: You have a loan outstanding. It requires making nine annual payments of $8,000 each at the end of…

A: A loan refers to a contract between two parties where one party forwards money to the other party on…

Q: ou will usually have choices of interest rates and loan term when seeking a loan. For the following,…

A: We take loans to buy large ticket and expensive items like a house or a car.The loan is paid off in…

Q: Jennifer has a 60-month fixed installment loan, with a monthly payment of $223.04. The amount she…

A: Unearned Interest: Unearned interest is interest that a lender has collected but has not yet earned…

Q: you want to buy a car and finance $20,000 to do so. You can afford a payment of up to $45p per…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: You have a loan outstanding. It requires making nine annual payments of $5,000 each at the end of…

A: This is the case of Future Value of annuity  Future Value of annuity  = PMT * [ {(1+ r)n -1}/r]…

Q: Zoey Bettincourt gets a $400,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest…

A: 5/1 ARM: 5 refers to fixed period of the mortgage i.e., first 5 years and 1 refers annual interest…

Q: Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.