Jim Meriweather purchased an engraving machine for $24,000 and financed it for 36 months. The total finance charge was $5,124. Use the table of interest per $100 to find the annual percentage rate. E Click the icon to view the table of interest per $100 of amount financed. decimel

Q: Dave Krug finances a new automobile by paying $7,300 cash and agreeing to make 20 monthly payments…

A: When it comes to personal, corporate, and governmental financial planning, TVM is crucial. It…

Q: evin bought a washer and dryer for $1050 but only had a down payment of $150.00. He financed the…

A: In add on method we simply add interest for given period and add to that with principal amount.

Q: What was the principal portion of payment number 4?

A: Time value of money (TVM) means that the earlier receipts will be worth more than the later…

Q: Murray Countertops borrowed ​$4000 at an annual rate of 8​% to buy a used forklift. Murray…

A: Here, Loan Amount = $4,000 Interest rate = 8% Number of periods = 4  To Find: Amortization schedule…

Q: Tony opened a hot dog stand last April. He borrowed $5500 to pay for the stand and startup…

A: The simple interest method computed the interest on initial principal amount and does not accrue the…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Dave Krug fin

A: Annuity is used in case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: Laura borrowed a total of $25,000 from two different banks to start a business. One bank charged the…

A: Given in the question:Total Loan Amount = $25,000Interest rate of one bank = 3%Interest rate of…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed…

A: Cost of sailboat = $8,350Down payment = $1,700Monthly payment = $237.38Number of period = 36 months

Q: On July 31, Jackson Paints & Supplies borrowed $147,000 to build a metal building for use as a…

A: The maturity value of the loan is the amount of loan that needs to be paid after adjusting the…

Q: Falco Inc. financed the purchase of a machine with a loan at 2.82% compounded quarterly. This loan…

A: Quarterly payments = $8,000Period = 5 YearsInterest rate = 2.82% per annumNote : “Since you have…

Q: Helen needed $5500 to start a web page design company and signed a 210-day note with a face value of…

A: Notes are considered as negotiable instruments.that can be issued to get credit for some time.it is…

Q: Jim Meriweather purchased an engraving machine for $25,000 and financed it for 36 months. The total…

A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested…

Q: aying monthly payments of $480 each, the first payment to be made one month after the purch The loan…

A: Annuity is used in case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment…

A: The amount financed can be calculated as cost of asset less down payment.

Q: Dave Krug finances a new automobile by paying $6,100 cash and agreeing to make 20 monthly payments…

A: Compound = Monthly = 12Down Payment = d = $6100Number of Payment = n = 20Payment = p = $530Interest…

Q: Aragon credit Union offers to lend Cassidy $35,000 to buy a car; the loan calls for payments of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: isham purchased a Washing machine priced at RO 380. He paid 45 RO down and will make 15 payments at…

A: Financed Amount = Price - Down Payment

Q: Stellar Company purchased a machine at a price of $92,700 by signing a note payable, which requires…

A: Notes are also known as promissory notes which are a sort of debt instrument stating a promise to…

Q: What was the principal portion of payment number 4?

A: Time value of money(TVM) means that the money received today will be worth more than the money…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: The Annual Percentage Rate (APR) is similar to the interest rate. It is on a yearly basis that is…

Q: Erica has just purchased a new personality from I Spy a New You, LLC for $1250. She put exactly 25%…

A: The monthly payment is the amount that is paid by the borrower to the lender for amortize the loan…

Q: Carlos financed $1250 computer with 24 monthly payments of $56.82. Find the ARP (true annual…

A: Given information: Present Value : $1250 Number of payments : 24 Payment amount : $56.82

Q: Dave Krug finances a new automobile by paying $7,100 cash and agreeing to make 20 monthly payments…

A: The down payment is the amount of cash paid while purchasing a product and the remainder is paid by…

Q: Problem #2. Your  neighbor purchased a sailboat for $9,810. He made a downpayment of $2,000 and…

A: The formula for Annual Percentage Rate (APR) is: APR = [(Finance charge / Amount financed) x (12 /…

Q: The financial officer of Toys and Noise arranges a loan of $8,500, at 8.5% interest, for 35 months.…

A: Simple interest: It implies to the cost of debt or borrowing cost that does not include the effects…

Q: Casey purchased a machine for $28,500 for his company. He paid 5% of this amount as a down payment…

A: A loan is a contract between two parties where money is exchanged on the promise of future repayment…

Q: Miguel purchased a hot tub costing $5,070 by taking out an installment loan. He made a down payment…

A: APR (Annual Percentage Return) The rate of interest charged by a creditor on the amount lent or the…

Q: am's Auto Repairs Inc. borrowed $9231 to be repaid by monthly payments over 4 years. Interest on the…

A: A general annuity, also known as a regular annuity or ordinary annuity, is a financial product that…

Q: An ice machine with a cash price of $75,000 is purchased on the instaliment plan with a $15.000 down…

A: Installment is the process of reimbursement of loan periodically by the borrower of the loan to the…

Q: An entertainment center is financed at a total cost of S2,308.47 including a down payment of $300.…

A: Monthly Payment = (Total Cost - Down Payment) / Number of Payments

Q: Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in…

A: concept. Interest payments and principal payments are required to be made on loan taken.

Q: James Hogan is purchasing a $30,000 automobile, which is to be paid for in 48 monthly installments…

A: Compound = Monthly = 12Present Value = pv = $30,000Number of Payment = nper = 48Monthly Payment =…

Q: For the following loan, find (a) the finance charge and (b) the APR. Use the accompanying table to…

A: Finance charge = Total amount paid  -  Amount financed.Total amount paid = amount of monthly payment…

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.