Maria and John decide to shop for furnishings for the new house.  They choose items that amount to $5600.00.  The store has 2 fixed installment simple interest loan options for purchasing:   Option 1: 20% down payment

Q: Example: In this exercise prepare an amortization schedule showing the payments for each loan. Joan…

A: PV = $20,000r = 7% / 2 = 0.07 / 2 = 0.035 (semiannual interest rate)n = 5 years * 2 = 10 payments

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Q: monthly payments for th

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Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

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Q: Maria and John decide to shop for furnishings for the new house.  They choose items that amount to…

A: Computation:

Q: Answer the following questions  about your possible future home purchase by filling in  all…

A: As the house price is not given. Let us assume the house price is $350,000.

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A: Solving for Mortgage Payments with Excel FormulasHere's how you can solve this problem using an…

Q: Option Rex and Bonnie are wanting to buy a new entertainment couch with a sales price of $20,000 for…

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Q: A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years.…

A: a. Calculate the monthly payment as follows: Monthly payment is $1,157.72

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $501,000 home…

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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.