Jean borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments at the end of each week for 4 years. The annual interest rate is 6.85%. Determine the size of payments, and the total interest paid. Express your answers rounded to the nearest cent! Payments: $

Q: A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and…

A:

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

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A: Given that: Interest rate r = 3.25% per year = 0.2708% per month Period n =3 year= 36 months…

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

Q: Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded…

A: i) Monthly Payment: Solved using Financial Calculator  PV = - 85,000 I/Y = 3.7/12 = 0.3083333333 N =…

Q: A couple who borrow $60,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…

A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later…

Q: A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and…

A: Mortgage are the loans taken from banks or non-banking financial institutions, to fulfill the…

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A: The amount owed is calculated as sum of principal and interest

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A: A mortgage is a borrowing taken such that regular payments are made to repay the loan. The…

Q: Sonia borrowed $7829.00 compounded monthly to help finance her education. She contracted to repay…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: A couple who borrow $100,000 for 15 years at 7.2%, compounded monthly, must make monthly payments of…

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Q: In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month…

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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.