Hudson agreed to borrow R4 954, 85 at 9% compound interest per month when he signed the loan papers today. Each month, the loan payment is R143, 84. How many loan installments does he need to make before the balance is settled in full? a. 70,30 b. 56, 88 c. 29, 89 d. 40,00 Question 16 Peter wants to purchase a car that costs R250 000,00. He decides to take a loan on the car in the expectation that it will be paid over six years at an interest rate of 15% compounded monthly. What will the interest payment be on the 24th monthly payment? a. R5 286, 24 b. R2 876,01 c.   R2 410,24 d. R3 125,00

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A:

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Q: ng two repayment plans for a and the debt is due in full at once. Offer 2 is to pay until the loan…

A: Loan=PV=$20000Loan payment=PMT=$4000Interest rate=r=15%

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Q: Michael borrowed rm420,000 to buy an apartment in damansara. His loan cost was 6% and he promised to…

A: Annual loan payment is calculated using following equation Annual payment = A×r(1-1(1+r)n) Where, A…

Q: You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent,…

A: Compound = n = Monthly = 12Present Value = pv = $30,200Interest Rate = r = 8.2 / 12 %Monthly payment…

Q: Chris bought a new car for $12,500. He made a $3,000 down payment and financed the rest at an annual…

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A: Loans are paid by equal fixed monthly payments that carry the payment for interest and loan both.

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Q: Ms. Lanz takes out a $9,000 loan to buy a used car for her daughter. She gets a 4-year loan at 8.75%…

A: We can calculate the total repayment of the loan by adding the interest amount and principal amount…

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A: We have to find the total interest that accumulates on a loan.

Q: which formula 2.Jacob borrows $3,000 at 5% exact interest for 540 days. How much does he need to pay…

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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.