Loan payments of $2,400 due 97 days ago and $4,450 due today are scheduled to be repaid with a payment of $3,940 in 33 days and the balance in 130 days. If money earns 6% p.a. simple interest, what is the size of the final payment? Use 130 days from today as the focal date.

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: A. Amount outstanding at the end of 2nd Year           $ 3000 (1+0.08/2)2x2 $3509.57568 B.…

Q: You own the right to receive a sequence of payments. The first payment is $4000 and is received…

A: A stream of cash flows in perpetuity has been provided. The present value needs to be determined.…

Q: An ARM for $101,800 is made at a time when the expected start rate is 5 percent. The loan will be…

A: PMT function in excel is used to calculate monthly payments, where PV is the loan balance on start…

Q: A basic ARM is made for $217,000 at an initial interest rate of 6 percent for 30 years with an…

A: A loan agreement is a legal document that outlines the terms and conditions of a loan between a…

Q: A $10,100 loan is to be repaid in three equal payments occurring 60, 180, and 300 days,…

A: A loan is a type of financial transaction in which funds or money are given to another party (the…

Q: A loan of $10,000 today is to be repaid by annual payments of $800 to commence one year from now and…

A: Final payment:The "final payment" represents the concluding installment in a series of financial…

Q: A payment of $1,930 is due in 55 days and another payment of $3,600 is due in 300 days. Calculate…

A: Given: A payment of $1930 is due in 55 days and another payment of $3600 is due in 300 days. So,…

Q: A demand loan of $3000.00 is repaid by payments of $1000.00 after two years, $1000.00 after four…

A: Loans are paid by payments and these payments carry the payment for interest and payment for loan…

Q: A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time.…

A: Repayment of loan is made in fixed instalments for during the loan period which include part of…

Q: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…

A: Loan payback is the process of repaying a lender for the money borrowed. The loan is repaid in a…

Q: Find the monthly payment and estimate the remaining balance.

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Give rate is 7.15% compounded semiannually no. of years 20

Q: A $17000 loan is to repaid by monthly payments of $390, the first payment is due in one year's time.…

A: given, pv = $17000 pmt = $390 r=10% m=12

Q: Calculate the number of months required to repay the loan.

A: When we borrow money from the borrower, we need to repay the periodical installments to repay the…

Q: You are to repay a loan of $3600.00 with 17 quarterly repayments of $240.00, with the first…

A: Given  Loan = $3600 Number of payment = 17 PMT = $240 Interest rate = 7.8390% quarterly compounded…

Q: Consider a student loan of $25,000 at a fixed AP a. Calculate the monthly payment. b. Determine the…

A: Loan amount = $25,000Interest rate = 9%Number of years = 30 years

Q: A payment of $1,930 is due in 55 days and another payment of $3,600 is due in 300 days. Calculate…

A: Present value of future amount With periodic interest rate (r), period (n) and future value (FV),…

Q: You have an outstanding debt of $8,000, with 9% simple interest. If you make a partial payment of…

A: An individual or another entity may take on debt in the form of a loan. A sum of money is given to…

Q: A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…

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

Q: Amount Rate Time ​$63,000 12​% 3 years table of monthly payments on a​ $1,000…

A: Loan amount (PV) = $ 63000 Annual interest rate  = 12% Monthly interest rate (R) = 12%/12 = 1%…

Q: A demand loan of $5000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: a)loan of £16,000 is repaid by annual payments of £1,500 each at the end of the year.  How long…

A: Ballon payment is the lump sum payment made at the end of the tenure or before the tenure of the…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: The concept of TVM is used to compare the value of money at different times based on the interest…

Q: Number of payments = (enter a whole number) PV=$ I/Y= PMT=$ % Complete the amortization table below.…

A: By rearranging the PV of ordinary annuity formula below, we can determine the n (number of payments)…

Q: Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of…

A: Present Value of Loan (PV) = $420,000Number of compounding periods (n) = 12 × 6 months = 72…

Q: Find the amount of the payment necessary to amortize a loan of $32,000 at 4% compounded quarterly in…

A: The term "amortization" refers to a gradual shift in your loan payments. Your monthly payments…

Q: Create an amoritization schedule for a $1,000,000 loan that requires equal annual payments in each…

A: An amortization schedule is a table or chart that outlines the specific details of a loan over time.…

Q: A demand loan of $6000.00 is repaid by payments of $2500.00 after two years, $2500.00 after four…

A: Amortization or loan repayment schedule For level-payment loans, a loan amortization schedule is a…

Q: Loan payments of $1,100 due 100 days ago and $1,950 due 82 days ago are to be replaced by a payment…

A: Value of money changes with time and this change depends on the interest rate and time of the loan…

Q: the unpaid balance be Immediately after the eleventh payment?

A: in this we have to calculate present value unpaid loan.

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.