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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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.