Maryanne purchases a house for $380,000 and takes a mortage for the full amount. Her mortgage charges 3% per year and interest is compounded monthly. She will repay the loan over 30 years with equal monthly payments. a) What is her monthly payment amount? b) How much of the 6th payment would be applied toward interest? c) How much of the 6th payment would be applied toward principal? Please show work or excel formuals used

Q: Miss Clare Jarrett just closed a loan of $400 000 to assist with the purchase of equipment and…

A: Loan Amount = $400,000 Time Period = 5 Years Interest Rate = 8%

Q: Ryan obtain a nine year subsidized loan of $26,000 at an annual interest rate of 4%. If Ryan…

A: Here, Loan Amount is $26,000 Annual Interest Rate is 4% Income Adjusted Repayment is $275 per month

Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

Q: Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's…

A: We need to use compound interest formula below to calculate principal deposit today to get desired…

Q: Jeffery Wei received a 7 year non Subsidized loan of 32000 at an annual interest rate of 5.2%. What…

A: In a non-subsidized loan, the interest on the original loan granted is calculated at simple interest…

Q: Rhett is about to begin college (4-year) and has received a 10-year $7,500 Federal Direct…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Sally borrows $25,000 for a loan, and she repays the loan by making quarterly end-of-quarter…

A: The principal amount is $25,000.The quarter payment is $650.The maturity of the loan is 15

Q: Max purchases a lot for $300,000. Max will pay $25,000 dollars at the end of each year. the interest…

A: Using excel NPER function

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: What formula do I use to solve this? If John wants to retire with $10000 per month, how mich…

A: Simple Interest formula is used to solve this problem because in this question John wants to earn an…

Q: Jewels can expect a total of $17,125 + $29,000 = $46,125 in student loans when she graduates from…

A: Data given: Student loan= $46,125 Total interest=$3,690 Allowable deduction=$2500 Tax rate=22%…

Q: Joan received a loan of $47,435 for 2.75 years at a simple interest rate of 9.5%. How much will Joan…

A: The future value of a simple interest amount is the principal amount with the total interest…

Q: Angelica Riordan received a four year non-subsidized student loan of $15,000 at an annual interest…

A: Equated monthly payments It is a monthly fixed payment given by the borrower to the lender on the…

Q: Katrina has the option of an 8-year nonsubsidized student loan of $29,000 at an annual interest rate…

A: A subsidized loan refers to a loan (usually provided to students) where the loan does not accumulate…

Q: 3. Jaylin makes a 25-year loan of 150,000 to Susan. Susan needs to repay this loan by level end of…

A: The PMT function uses the same fixed amount to determine the required payment for any loan or…

Q: Helen contributed $500 at the end of every month for the past 5 years into an RRSP account, earning…

A: Annuity means series of no. of finite payments which are same in size and made in equal intervals.…

Q: Alice borrowed $8,000 from her grandmother to buy The interest rate being charged is 4.5% compounded…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: Remy obtains a 30-year mortgage in the amount of $625,000 for a co-op. She secures a 7/1 ARM at an…

A: ARM is a type of variable interest loan, where the interest amount changes after the initial period.…

Q: aumon bonowed $7819 00 compounded quarterly to help finance her education. She contracted to repay…

A: Loans are paid by the equal periodic payments and these periodic payments carry the payment for…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $14,000 in student…

A: It can be calculated using following function in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: Ms. R. would like to buy a mobile home. For this purpose, she takes out a loan on 01.01.2021 Amount…

A: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $10,000 in student…

A: Tenure is the loan refers to the time period by which loan is repaid along with the applied interest…

Q: Charles has just taken on the conditions of the loan, he must make payments of $1,200 per year for…

A: Amount of loan is the present value of the annual payments of the loan based on the time and…

Q: Jeffrey Wei received a 6 year non-subsidized student loan of $30,000 at an annual interest rate of…

A: Present Value = $30,000 Interest Rate = 5.9% Time Period= 6 Years Loan Start after 4 Years

Q: Kent owes $38000 with an interest rate of 4% in the student loans. If the loan will be paid after 2…

A: If the loan is a bullet loan that has to be paid at the end in a single payment then, the interest…

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: Angelica received a 12-year non-subsidized student loan of $18,000 at an annual interest rate of…

A: Non-subsidized student loan is a type of student loan that is not subsidized by the Federal…

Q: Hector and Maria purchase their first home for $138,000. They make a 10% down payment and finance…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Sonia borrowed $7829.00 compounded monthly to help finance her education. She contracted to repay…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: Mindy takes out a 4-year loan of $5000 at an annual rate of discount of 5%. How much does she…

A: Present value is a financial concept that helps calculate the present value of money to be received…

Q: Kelsey's parents wère unable to pay for her last year of college, so she obtained a student loan of…

A: Loan: It represents the amount borrowed from the lender by the borrower in exchange for repayment…

Q: Click here to access the TVM Factor Table calculator. Interest = $ Principal = $

A: Loans are paid by monthly payments that are fixed and carry payment for interest and payment for…

Q: Briana received a 10 year subsidized student loan of $28,000 at an annual interest rate of 4.125%.…

A: Information Provided: Loan amount = $28,000 Interest rate = 4.125% Period of loan = 10 years

Q: Theodora received an 8-year PLUS Loan of $17,000 to attend law school for her last 2 years. If the…

A: Step 1 The amount paid each month to repay the loan over the course of the loan is known as the…

Q: Ma. Nochna Pula borrowed $10,000 at 6% annual compound interest. She agreed to repay the loan with…

A: Annual payment can be calculated using the present value of annuity formula. Present value of…

Q: William borrows $22,000 to buy a car. He will repay the loan through 4 years of equal monthly…

A: Variables in the question:Loan amount=$22000N=4 yearsRate=4.5%Working Note#1:nper=4 years x 12=48…

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.