Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low interest loan at 3.75% compounded semi - annually and plans to repay the loan in one payment in 3 years, how much can he borrow? Show all workings.

Q: If she can sell the car after 3 years for $40,000, what is the total amount she will pay over the…

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

Q: Greg wants to buy a $25,000 car today, but he doesn’t have the cash to buy it. The dealership is…

A: Loans are paid by equal monthly fixed types of payments and these payments carry the payment of…

Q: Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on…

A: in this we have to calculate total interest to be paid and total principal and then monthly payment.

Q: Mack wants to buy an used car that has a sticker price of $15600 .he has a down payment of $5000 and…

A: Simple Interest is method of computing interest where compounding is ignored and interest is…

Q: ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has…

A: A. Time to be taken can be computed as follows : Calculations :

Q: Dennis Lamenti wants to buy a new car that costs $15,177.57. He has two possible loans in mind. One…

A: In Add-on loan calculation for interest, the Principal and the total interest which is due is…

Q: Down Payment and Loan Payments. Lucas wants to buy a used car that will cost $5,100. How much will…

A: The monthly installment amount includes the interest expense and repayment towards principal.

Q: Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most…

A: Amount received for trade-in = $6,000  Monthly Payment, P = $500  Interest rate = 2.2%  Number of…

Q: 2. I decided to buy a house for $289,900. I have enough in savings to put 10% down on the house and…

A:

Q: John wants to make monthly deposits into an ordinary annuity. He wants to have $10,000 in the…

A: The formula to be used is

Q: ou just purchased a $30,000 car by taking out a $25,000 loan. If the loan requires 6 yearly payments…

A: Present value of annuity. PV = A × Where,PV = Present value of annuity A = periodic payments r =…

Q: Hank purchased a car for $26,000 two years ago using a 5-year loan with an interest rate of 9.0…

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

Q: Fou want to buy a $221,000 home. You plan to pay 15% as a down payment, and take OL he rest. a) How…

A: Down payment is the advance cash payment that is made out of pocket for the purchase of a home and…

Q: Max the mouse decides that he needs a new place to put his giant cheese refrigerator. So, Max…

A: GIVEN, pv = $300,000 A= $25,000 r=4%

Q: (2) Jack has deposited P1,000 into a savings account. He wants to withdraw it when it has grown to P…

A: Future value = Present Value* (1+Rate of Interest)t Here t is the time period or we can also say…

Q: Derek decides to buy a new car. The dealership offers him a choice of paying $588.00 per month for 5…

A: A purchase can be made by paying in cash or paying in installments.

Q: Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not…

A: Simple discount refers to the method of calculation of the amount received and interest paid where…

Q: If Blitzen wants to buy a $150,000 house. Blitzen is going to pay $60,000 down and make monthly…

A: When a property is finance with loan, bank charges processing fees which is on the finance amount…

Q: His monthly payment will be $ (Round to the nearest cent.)

A: Annuity Payment: These payments are made in a series having equal intervals. Examples of annuity…

Q: John is looking for a new car. He has a down payment of $1,750.00 and wants to pay $300.00 per month…

A: A loan refers to a contract where money is borrowed by one party on the promise of future repayment…

Q: Wally wants to buy a house instead of renting, and has found a bank that is ready to loan him a…

A: Here, Interest Rate is 5% per year Time Period to live in the house is 15 years Value of Home at the…

Q: You borrowed $300,000 to build a home by taking out a 30 year loan that has an interest rate of 12%.…

A: Present Value = pv = $300,000Time = t = 30 YearsInterest Rate = r = 12%

Q: A few years down the road you move out, buying your own home. You decide to take another look at…

A: The finance charge represents the total interest amount to be paid over the loan term. When a loan…

Q: nnis Lamenti wants to buy a new car that costs $15,326.72. He has two possible loans in mind. One…

A: In this question, we have to find out the interest paid on loan by dealer and by bank

Q: 7. Mark Hohman has decided that it is time to buy a new car. He has found his dream car for $25,502…

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

Q: My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5%…

A: While taking a loan for any purpose one should evaluate the payment schedule where the requirement…

Q: Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Arnold has determined that he can afford a monthly payment of $325 for a car. If he can obtain a 4…

A: Here, Affordable Monthly Payment (PMT) is $325 Time Period in years (n) is 4 years Interest Rate (r)…

Q: Tom needs a car to commute to work and has found a suitable Honda Civic from a dealer for $8000. He…

A: Total is the amount of down payment and amount total paid in monthly payments that include payment…

Q: Christina Sanders is concerned about the financing of a home. She saw a small Cape Cod–style house…

A: Here, Particulars Case (a) Case (b) Case (c) Case (d) Price of a house   $     90,000.00  $…

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.