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 for $9665.94 with interest at 7.6% compounded quarterly is repaid after 4 years, 11…

A: Compounding frequency:Compounding frequency is the number of times an interest rate is applied in a…

Q: What is the APR on this loan?

A: Interest is the cost of borrowing a loan. It is the excess amount over the principal borrowing.…

Q: A loan 1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7% on…

A: Equal installment  = Loan Amount / present value annuity Factor @rate of interest for life

Q: A loan payment of $1500.00 was due 10 days ago and another payment of $900.00 is due 50 days from…

A: Given information:Loan payment of $1,500 due 10 days ago,Loan payment of $900 due 50 days from…

Q: What annual payment is required to pay off a four-year, $29,000 loan if the interest rate being…

A: Loan amount (L) = $29000 Let the annual payment = A Monthly payment = M EAR = r = 7% Let monthly…

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start…

A: Installment is the amount of periodic payments a borrower has to make in order to repay his loan in…

Q: A $ 200 000 loan is made with 30 years maturity and monthly compounded. The loan is based on a…

A: The loan is an arrangement of the lending facility from the lender to the borrower. A lender…

Q: 2. What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: A loan is to be paid by installments of $800 1-month from now, $600 3-months from now, and $500 4-…

A: Loans are paid by the amount that carry the interest on the loan and paid by the single equivalent…

Q: EZ Pay Loans will lend you $100 today with repayment of $117.50 due in 1 month. Determine the…

A: Given Information : Present Value of loan : $ 100 Future Value : $ 117.50 Time : 1 month

Q: A loan payment of $1049 was due 50 days ago and another payment of $3443 is due 45 days from now.…

A: Present value is the current current value of the cash flow. The cash flow is discounted with the…

Q: Calculate the maturity value of the simple interest loan. (Round your answer to two decimal places.)…

A: As per the simple interest loan, The formula to be used is: A=P(1+rt)

Q: You have $1000 in an account earning 4% APR compounded daily.  At the same time, you are to pay a…

A: Interest rate compounded daily is 4% Amount in account(PV) is $1000 Amount needs to pay in future…

Q: Calculate the maturity value of the simple interest loan. (Round your answer to two decimal places.)…

A: A loan is a form of financing money. The party who takes a loan is called the loan taker and the…

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: Find i (the rate per period) and n (1

A: Introduction: The rate of interest can be defined as a rate which is charged as a proportion of the…

Q: a. $64,000, 15-year loan at 7.00 percent. b. $140,000, 30-year loan at 5.50 percent. c. $104,000,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…

A: Equity in a home refers to how much of that home's value a person has already invested in it.

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly…

A: Unpaid balance can be calculated by using loan amortization formula mention below. Unpaid loan(Loan…

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 loan payment of $1100.00 was due 10 days ago and another payment of $800.00 is due 40 days from…

A: Borrowing is the act of obtaining money, goods, or services from another party with the…

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: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: Find the future value of this loan. $16,916 at 6.8% for 18 months The future value of the loan is $…

A: Principal amount is $16,916 interest rate is 6.8% Time period is 18 months To Find: Future Value of…

Q: With the given information please confirm if my calculations for how many years it will take to pay…

A: using excel nper function

Q: I hope you could write the formula and process more clearly. Thank you

A: To solve this problem, we can use the formula for the present value of an…

Q: A loan of $1420 taken out on June 7 requires three payments. The first payment is due on July 7. The…

A: Periodic payment refers to an amount that is paid every period for the repayment of a loan amount…

Q: 3. A loan of $50,000 due in one year is to be repaid by three equal payments due today, six months…

A: A loan is one where the lender provides money to the borrower on interest. The lender received…

Q: A $25,000 loan is to be repaid with a payment of $4,500 in 1 month, another payment in 8 months and…

A: A loan is referred to as an arrangement between two parties where one party gives an amount in…

Q: How long (in years) will it take to repay a $100,000 loạn taken out today at 7% compounded monthly,…

A: The time value of money is the one widely used by companies and individuals to determine the current…

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.