In how many years is the second installment due?

Q: A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is…

A: Loan Amount = Monthly payments * [ 1- [1/(1+r)^n ] / r  where r is the monthly rate = 3/12 = 0.25  n…

Q: To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment…

A: Generally loans are paid by annual payments that carry the payment for loan and payment for interest…

Q: A $15 000.00 loan requires payments at the end of each month for five years. If the interest rate on…

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

Q: find the term of the loan n if the amount of interest paid in the 10th payment is 300

A: Amortization is the process of repaying the loan. In an amortizing loan, a portion of each monthly…

Q: et up an amortization schedule for a P5,000 loan to be repaid in equal installments  at the end of…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: Required: a. If the borrower makes interest-only payments for three years, what will the payments…

A: Amortization: It is the process of paying the loan by making periodic and regular payments. These…

Q: Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years,…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: A financial obligation requires payments of $200 today, $250 in three years, and $550 in five years.…

A: The concept of TVM states that the money earned earlier has more value than the same amount earned…

Q: a. Calculate the interest component of Payment 10. Interest $. 1187.03 b. Calculate the principal…

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

Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…

A: Interest payment for the 3rd year = $1080 ($30000-$6000-$6000)*6% = $1080

Q: An amount of $13,000 is borrowed from the bank at an annual interest rate of 14%. a. Calculate the…

A: Amount borrowed - $ 13,000 Annual interest rate - 14% Loan period - 4 years

Q: Two debts, the first of $600 due nine months ago and the second of $1700 borrowed one year ago for a…

A: Future value of a present value is the value of that amount after taking into account the time…

Q: A bank makes a loan of $10,000. The loan will be paid back after 10 years with yearly payments of…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A 4 year loan of $125,000 with equal installment payments at the end of each year.The interest rate…

A: Therefore, P*[1-1/(1+r)^n]/r = 125,000  => P*[1-1/(1+7%)^4]/7% = 125,000 =>P*[1-0.7628]/7% =…

Q: A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded…

A: First monthly payment (M) = 200 Monthly growth rate (g) = 1% Monthly interest rate (r) = 12%/12 = 1%…

Q: A debt of $40 000 is to be repaid in installments due at the end of each month for seven years. If…

A: Payments refer to the regular fixed cash flow made against the debt amount in order to repay it over…

Q: The interest rate on a $57,000 loan is 8.6 % compounded semiannually. Quarterly payments will pay…

A: An amortized loan has been presented with all the details. Several questions follow on the interest…

Q: A loan of 10.000 TL is repaid in equal annual installments at 10% effective interest rate per year.…

A: Given: Loan amount= 10000 TL Annual effective rate =10% Interest amount in third payment = 868.24…

Q: A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at…

A: In the question above. With prospective method we will discount all the outstanding payments due on…

Q: A loan of $12,000 is repaid by payments of at the end of every three months Interest is 9% $571

A:

Q: A loan of ​$3137 borrowed today is to be repaid in three equal installments due in one-and-a-half…

A: Investment is an excellent way to build wealth over the long term. By investing in assets like…

Q: A 13 -year loan for $1,500,000 is to be amortized by equal monthly payments. If the APR is at 7.53%,…

A: Loan amount = $ 1,500,000Number of years of loan = 13APR= 7.53%

Q: The interest ratç for the first three years of an $90,000 mortgage loan is 8.4% compounded…

A: It is assumed that the monthly payments made initially are at a rate of 8.4% compounded…

Q: A loan of $1,000 is made at an interest rate of 11% compounded quarterly. The loan is to be repaid…

A: A loan is a contract between two parties where an amount is forwarded in exchange for a promise of…

Q: Calculate the effective annual rate on each of the following loans: 1. $5,000 loan for 2 years,…

A: Effective interest rate refers to the real return that an individual or company earns on a saving…

Q: A loan of $ 8500 is to be repaid in 39 equal monthly installments with the first one paid seven…

A: Here borrowers understand how much they need to budget each month to repay their loan within a…

Q: An interest-only ARM is made for $218,000 for 30 years. The start rate is 5 percent and the borrower…

A: It is the process of paying the loan by making periodic and regular payments. These payments include…

Q: loan is repaid monthly and the annual effective interest rate is 6.9% pe nnum. The capital…

A: Loans are paid by the equal monthly installments and these monthly installments carry the payment…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is…

A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…

Q: A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments…

A: A mortgage is a covered loan that is borrowed to purchase a property. The property in question acts…

Q: and has a loan of $8,500 compounded quarterly for four years at 10%. What is the eff ere to view…

A: Effective interest rate is interest rate considering effect of compounding.

Q: The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually.…

A: Given, The mortgage is $95000 Rate is 7.2% compounded annually Term is 25 years.

Q: Quarter-end payments of $1,490 are made for 8 years to settle a loan of $31,880. What is the…

A: Compound = n = Quarterly = 4Payment = pmt = $1490Time = nper = 8 * 4 = 32Present Value of Loan = pv…

Q: You take out $17,300 loan that will be paid off in six equal installments. The stated annual…

A: APR can be referred to as the effective interest rate that takes into account the amount of the loan…

Q: How much interest is paid in total on a 3-year loan for $30 000? The interest rate is 8.7%…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Q: a. What will be the principal balance at the end of the four-year term? (Do not round intermediate…

A: Loan amount = $ 89,000 Interest Rate = 8.3% Monthly Interest Rate = 8.3% /12 = 0.692% Number of…

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.