Jim makes a simple interest loan of $5,800 at 16.35% for 18 months.  Assume the loan period is determined using ordinary time.  Find the interest paid. Find the maturity value.

Q: Jayson made a loan with a 8.5% interest rate that is equal to 3,559.38 and its principal is 225,000.…

A: Time value of money concept says that there can be present value and future value of money. Future…

Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…

A: Short term loan: Short-term loans are borrowed funds used to fulfill immediate liquidity demands,…

Q: Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $87,000 at an APR…

A: Here, Borrowed Amount is $87,000 APR is 5% Time Period is 19 years Monthly Payment is $592

Q: Reya paid Php 9,250 on a loan made 6 months before at 12% simple interest. Find the interest…

A: Simple interest is simple interest without any compounding that means no interest on interest…

Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…

A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…

Q: How long would you have to wait for a deposit of $1,625 to earn $34 in interest? Assume that the…

A: Interest = Principal * Rate * Time

Q: Suppose Fred borrowed $5,765 for 49 months and Joanna borrowed $4,303. Fred's loan used the simple…

A: Amount borrowed = $5,765 Period, n = 49 monthsInterest rate, r = 4.9% The maturity value of the loan…

Q: Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing…

A: To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT. To open…

Q: Assume that you take out a $7000 loan for 46 months at 7.5% APR. How much total interest will you…

A: Loan: It is the amount of money borrowed from a person or bank or company for a certain period…

Q: You are looking at a one-year loan of $18,000. The interest rate is quoted as 7.4 percent plus two…

A: Here,Loan Amount $ 18,000.00Interest Rate7.40%Lender Upfront Cost2%Time Period in years1Lender…

Q: Develop a general-purpose spreadsheet to calculate the balance due, principal payment, and interest…

A: workings:

Q: Safewell Co obtains a discount loan at a 12 percent interest rate.  Safewell borrows $100,000 for…

A: Effective interest rate if the amount of interest rate which is charged on the principal amount…

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

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Q: Consider a $230,000 home mortgage in which the payment per month is $945.38 for a thirty-year…

A: A Loan refers to the amount of money taken by one party named borrower from the other party named…

Q: Find the maturity value on a loan of $2,500 at 11.5% interest, for 84 months. Use the formula  MV =…

A: The maturity value of loan will be the aggregate of Amount of loan and Interest on loan.

Q: The maturity value of a 4-month loan of $4,250 is $4,367.50. What is the annual simple interest rate…

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Q: Jacques has just been notified that the combined principal and interest on an amount he borrowed 19…

A: Loans carry the interest rate so value of loans increases with time and interest.

Q: Cray Computing needs a 8-month loan for $300,000. Its bank quotes a simple interest rate of 12% on…

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Q: Flat Rock Inc recently borrowed $55,000 from its bank at a simple interest rate of 9.2%. The loan is…

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Q: You borrowed $5,000 for 24 months at 6% interest. What is the total payback on the Single Payment…

A: Total payback on the Single Payment loan - It es the payback of the loan at a single payment…

Q: Use Excel to solve this problem. An $11,000 mortgage has a 30-year term and a 6% nominal interest…

A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: We need to use simple interest formula to calculate the simple interest. The formula is Simple…

Q: A mortgage for $100,000 is made with initial payments of $500 per month for the first year. The…

A: Given: The mortgage is $100,000 The initial payment is $500 The rate of interest is 9%

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Simple interest is the type of interest that is calculated on the original amount of the loan and…

Q: Lebron has two options to pay off a loan. i) He can pay $918 at the end 3 months and another $467…

A: For purpose of calculation and evaluation of both the options, we need to compare the vash flows on…

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A: simple interest involves no compounding that means no interest on interest is included.

Q: Find the interest rates earned on each of the following. Round your answers to the nearest whole…

A: The question is related to rate of interest. Interest rate is calculated with the help of following…

Q: a. Calculate the loan’s annual financing cost. b. Calculate the loan’s annual percentage rate. c.…

A: Annual percentage rate (APR) refers to a real interest rate which an investor is expect from his…

Q: 1. PEDRITO OBTAINS A LOAN FOR $140,000.00 FOR A TERM OF ONE YEAR AND EIGHT MONTHS WITH A SIMPLE…

A: Simple interest is a method of calculating interest on a principal amount without considering the…

Q: I want to borrow $700 for ten days from a payday loan store. Here are the terms for the payday loan:…

A: Pay Day loan: A payday loan is a small personal cash loan at a very high interest rate, secured by…

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: Assume that you take out a $2000 loan for 53 months at 5.5% APR. How much total interest will you…

A: Total interest paid = Future amount payable - Loan amount Amount payable for the loan borrowed is…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: You take a small business (SBA) loan for $90,000. The current annual interest rate on SBA loans is…

A: Loan Amount = a = $90,000 Interest rate = 6%

Q: Consider a home mortgage of ​$225,000 at a fixed APR of 3​% for 25 years.   a. Calculate the monthly…

A: In case of a home mortgage fixed monthly payments are made. The fixed monthly payment consists 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.