Maalaga borrowed a three-year loan for 80,000. If the debt a erest at a rate of 8% per month compounded, and the first paym e end of the fourth month, how much should he pay each month?

Q: Sol Pine borrows $8,200 for one year at 12 percent interest. What is the effective rate of interest…

A: The effective rate of interest refers to the interest on a loan to be accumulated the compound…

Q: A person takes a loan of 200 at 5 % simple interest. He returns 100 at the end of 1 year. In order…

A: Simple interest does not consider the compounding effect.

Q: Juan borrowed 3,841 at 1.32% per month payable in 24 equal end-of-the-month payments. What is the…

A: Solution:- Effective interest rate means the net interest rate for the year after the effect of all…

Q: Jimmy paid off a mortgage by paying $700 per month for 12 years. What was the original amount of the…

A: The original amount of the mortgage refers to the initial principal balance or the total loan amount…

Q: Jacob borrows $3000 at 5% exact interest for 540 days . How much does he need to pay back at the end…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Sam borrowed $5,550 at an annual rate of 5.9%. If he will repay this debt weekly for 26 weeks, how…

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

Q: Jacob took a $75,000 loan at 1.8% compounded monthly and decided to make end of month payments of…

A: A loan refers to a contract between a borrower and a lender where money is forwarded on the promise…

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years

Q: randon Rockwell owes P200,000.00 with interest at 5% payable semi-annually. What equal payments at…

A: Solution Given Amount due 200000 Interest rate 5% Compounding Semi annual…

Q: Joyce pays P 2,000 every two months to settle his obligations for two years at 8% compounded…

A: Bimonthly payment (B) = P 2000 r = 8% compounded bimonthly = 8%/6 bimonthly = 1.3333% n = 2 years =…

Q: Amit borrowed $2000 at a simple interest rate of 5.5% per annum. At the end of the term, he owed…

A: Step 1 Simple Interest When someone lends money to a borrower, the borrower typically has to pay the…

Q: Nelson took out a 25-year home loan of $500,000. He made equal month-end repayments at the interest…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: James borrows $280 000 and repays the loan in equal fortnightly repayments of $1250 over 20 years.…

A: The time value of money is a concept used to compute and analyze the present worth of the future…

Q: Jacob has just agreed to take a loan that will require him to make payments of $107 at the end of…

A: Loan amount refers to an amount that is paid every month for the repayment of a loan by the borrower…

Q: a) Peter wishes to purchase a motor vehicle from a dealer in Johannesburg for R150 000. His bank,…

A: We will use excel function 'PMT' to find the monthly payment for the loan. as shown in the above…

Q: Mr. Joe  takes a loan P amount from the bank. The loan attracts an interest of 1.5% per month…

A: future value = present value×ert where, r=rate of interest t=time in years

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…

Q: Jane is being offered a loan of 25M for 5 years at 16% per annum compounded weekly. Determine the…

A: Loan is contract between lender & borrower where lender provide funds to borrower for definite…

Q: Krista borrowed 15,268. The loan is to be repaid by three equal payments due in 52, 146, and 261…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: G borrows P47,400 with interest at 18% compounded quarterly. How much should he pay to the creditor…

A: Use the Excel FV function with the following inputs to determine the value of investment. RATE =…

Q: jackal promises to pay 1000 at the end of 6 months in obtaining a loan from a banker b who charges…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: Raquel will settle her debt my making quarterly payments of P5,800 for 3 years and 6 months but the…

A: Quarterly payment = P 5800 Period = 3.50 Years Number of quarterly payments = 3.5*4 = 14 Annual…

Q: borrows $500 for four months at 9%. How much interest must he pay?

A: The amounts are borrowed from the banks for short term and long term and interest are to be paid on…

Q: Mr Lim must pay RM 250 every month for 24 months to settle a loan at 10% compounded monthly. Find…

A: Monthly payment (P) = RM 250 Number of monthly payments (n) = 24 Interest rate = 10% Monthly…

Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…

A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…

Q: On October 5, Tristan Sandino borrowed $3,050 to buy an English bulldog. The loan carried a rate of…

A: Simple Interest=  Principal* rate of interest* number of days/Number of days in a year.

Q: is 4% per annum compounded semi-annually? State your answer in years and months (from 0 to 11 He…

A: Loan amount=$3340Annual payment=$116Interest rate=4%Compounding semi annual.

Q: Karl borrows P200,000 and agrees to pay the principal and interest by making equal payments at the…

A: A loan refers to the amount borrowed from one person to the other person in exchange for the…

Q: Engr. Russel Clarete loan an amount of P200,000 at a local commercial bank at 12% compounded…

A: The series of monthly payments discussed here is a form of annuity wherein an equal payment is made…

Q: Hassan borrows  AED 4,000,000 to be repaid over 15 years at 7 percent. What is the repayment of…

A: There are several functions in Microsoft Excel that can be used to perform time value of money…

Q: alfred desires 9000 as the proceeds of a 90 day loan from b who charges 5% interest in advance. what…

A: Future value is the value of the current assets or some amount that is invested today and the amount…

Q: Julius takes out a loan of $8500 at 9.5% simple interest for three months. What is the maturity…

A: How to calculate the maturity value of the loan:Formula:Simple Interest (SI) = Principal (P) × Rate…

Q: Iskandar has to pay RM19 000 in total to settle a three-year loan by making equal monthly payments…

A: Given information,Amount: NPER:  years Payment frequency: MonthlyRate: Compounding frequency:…

Q: Angelica took out a 20-year loan for $170,000 at 5.4% interest, compounded monthly. What is her…

A: The monthly payment is determined by dividing the loan amount from the present value factor. The…

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.