Mathew takes a loan that charged interest at 3.75% compounded monthly. He repays the loan in 9 years with monthly payment of RM357.25. Immediately after paying the 89th payment, he decided to settle the balance of the loan. No use excel. Find the balance to be paid.

Q: Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge…

A: Principal Amount = p = $1400Interest = i = $70Service Charges = sc = $12Number of Payment = n = 12

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Q: 2. Janica received a loan from her bank for Php 4,085 for a period of one year. The interest rate is…

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Q: Vanessa initially borrowed $6,400 from RBC Bank at 3.64% compounded semi-annually. After 4 years she…

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Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: Data given: Offer 2: PV=Loan amount=$16000 PMT=$4200 Rate=16%   Required: Time required to payoff…

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A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: Tarell purchased a car for $54,700; he paid 5% of the cost as a down pay the balance amount at 3.4%…

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Q: Aman has two debts to pay. A $850 due today and a $950 due in 9 months from today. Instead, he wants…

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Q: 2. Jeffrey purchased a new car. He wishes to set aside enough money in a bank account to pay…

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Q: Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay…

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Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: (ANSWER LETTER C ONLY AT THE BOTTOM OF THE PAGE)   Michael Sanchez purchased a condominium for…

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Q: B. Solve for the following: 5. Francis Nicolas borrowed P100,000 at an interest rate of 14%…

A: Note: Since here questions 6 and 8 are asked specifically to solve, but we are allowed to solve only…

Q: Nadhirah needs to pay RM168.28 every month for a loan of RM7,000 from XYZ Bank at 7.2% compounded…

A: Given, The monthly payment is RM 168.28 Loan amount is RM 7000 Rate is 7.2% compounded monthly

Q: Louie borrowed $2,000 from Phil. Under this agreement, Louie would repay with $1,300 at t = 1 and…

A: Borrowing at time 0 = 2000 Repayment 1 at time 1 = 1300 Repayment 2 at time 4 = 1700

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A: To calculate the annual interest, you need to find 23% of the loan amount. The loan amount that Phil…

Q: How much money is requested from the bank if the simple interest rate is 12. 987%?

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Q: Phillip purchased a machine for $20,000 for his company. He paid 5.00% of this amount as a down…

A:

Q: Before deciding to deposit her money at the credit union, Heather checked the interest rates at her…

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Q: Elijah took out a mortgage of $672,000 for a house and just made the 113th end of month payment.…

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Q: Rachael initially borrowed $6,800 from RBC Bank at 4.7% compounded monthly. After 4 years she repaid…

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Q: Marcy borrowed P1M in a bank that charged 18% compounded monthly and agreed to make monthly payments…

A: Monthly Compounding: It is the interest of interest to the principal sum of a loan or deposit and…

Q: krystof took out a personal loan for $3, 569.74 with monthly payments for 5 years. The interest rate…

A: Here,LoanAmount is $3,569.74Time Period is 5 yearsInterest Rate is 11.39%Compounding Period is…

Q: John bought a condo for RM 630,000. He made a 15% down payment and financed the balance through a…

A: MONTHLY PAYMENT: PMT=P×rm1-1+rm-m×n p=loan amount (principal) m=frequency of compounding n=number of…

Q: Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to…

A: Actual amount received = P 1340 Discount rate = 13.73%

Q: Doreen Short was looking over the repayment schedule for a loan of $37,858 at 7% interest for 5…

A: Repayment schedule:Repayment schedules provide as a financial road map for both lenders and…

Q: Adlina Rose took a housing loan that charged 6.25% compounded monthly to buy a new bungalow. She…

A: The borrowed amount refers to the total amount of money that an entity (such as a corporation or…

Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…

A: a) Interest for the first semi annual payment       = Principal * Rate * Time      = 135000 * 6%…

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.