In order to buy a car, you borrow $25,000 from a friend at 12%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments. Solve, a. How much are the monthly payments? b. How much interest is in the 23rd payment? c. What is the remaining balance after the 37th payment? d. Three and one-half years after borrowing the money, you decide to pay off the loan. You have not yet made the payment due at that time. What is the payoff amount for the loan?

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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%

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

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

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A: Using the PMT function in excel

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Q: Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off…

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Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

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Q: The remaining balance of your car loan would be

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Q: You want to save for a new car so you make payments of $573 at the end of every month into the bank.…

A: Monthly Payment = mp = $573Annual Payment = ap = $1620Number of Monthly Payment = mn = 7 * 12 =…

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A:

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A: Compound = monthly = 12 Payment = p = 150 Interest rate = r = 2 / 12% Time = t = 5 * 12 = 60

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A: Simple interest per month is calculated at: = Principal * rate of interest * 1/12

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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.