Michele has a credit card with an APR of 28.99% and a current balance of $12,357.62. She wants to pay it off in 4 years. What will Michele’s monthly payment be? (Remember a credit card is compounded monthly.) Round to the nearest dollar.

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Alice has a balance of $19.000 on her credit card. The card carries a 22.00% annual rate of…

A: Monthly payment refers to the function of time, the value of money used for calculating the amount…

Q: Jane has a credit card balance of $21,000. The annual interest rate is 20%. She is required to pay a…

A: Given: Credit card balance = $21,000 Annual interest rate = 20% Minimum payment = 4% Additional…

Q: Marta needs some quick cash for books at the beginning of spring semester, so she borrows $500 at 9%…

A: We can use the formula for simple interest:Simple interest = Principal × Rate × TimeHere, Principal…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: The finance charge is the cost determined by multiplying the estimated rate of finance with the…

Q: Every two weeks, Betty makes a $287 payment toward a car loan whose annual rate is 4.5%. If she will…

A: Here, ParticularsValuesBi-weekly payment (PMT) $ 287.00Interest rate4.50%Number of years4.00Number…

Q: Ingrid wants to buy a $22,000 car in 7 years. How much money must she deposit at the end of each…

A: A sinking fund is a type of fund that is set up by an organization or company to accumulate money…

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

Q: Maeve wants to borrow money to purchase a car.  They can afford to pay back $200 a month.  If they…

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

Q: Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a…

A: APR stands for Annual Percentage Rate. It is a standardized way of expressing the total cost of…

Q: Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest…

A: Loan amount = $300,000 Initial interest rate = 2.75% Initial payment = $1,224.72 After 5 years,…

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: enny takes out a new car loan for $41,000 at 5% annual interest rate for 5 years. a. What is…

A: Loan Amount is $41,000 Annual Interest rate is 5% Interest rate is 5 years To Find: Monthly…

Q: Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Ursula wants to buy a $21,000 used car. She has savings of​ $2,000 plus an​ $800 trade-in. She wants…

A: The monthly payment is the payment that includes the principal amount as well as interest amount and…

Q: 5000. She can borrow from a finance company at 6.90% add-on interest for 4 years. Or she can borrow…

A: In the add on method of interest all interest for the period of the loan is added at one time and…

Q: Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a…

A: Loans are paid in equal monthly installments that carry the payment for interest and payment for the…

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: HSBC bank offers a savings account with a 3% annual interest rate, compounded monthly. Kate wants to…

A: Rate of interest per month compunded monthly = 3%12=0.25%

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

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

Q: Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: Ingrid wants to buy a $16,000 car in 8 years. How much money must she deposit at the end of each…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

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…

Q: If Sam can afford payments at $390 per month for 6years. what is the price of a car that she can…

A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

Q: A druggist borrows $5500 from a bank to stock her drugstore. The interest rate is 8% compounded…

A: CONCEPT The Monthly installment in relation to borrowing is an amount that includes interest and a…

Q: Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan…

A: In simple interest there is interest on the principal amount only and no interest on interest in…

Q: You decide to save money to buy a car by opening a special account at a bank that offers 8% APR…

A: Calculate the future value as follows:MS-Excel --> Formulas --> Financials --> FV

Q: Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of…

A: In this case Wilma will make fixed monthly payments. The amount of these payments will be the same…

Q: Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan…

A: The given payments are a form of annuity wherein an equal payment is made at eqaul intervals. The…

Q: Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment…

A: It is a case where the amount of loan to be borrowed by Dolph is to be calculated, based on his…

Q: Alien Jackson has $2,000 on her credit card which charges a 23% interest rate. If she wants to pay…

A: It is a case of amortization of a loan that is to be paid in 4 years on a monthly basis. To repay…

Q: Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest…

A: The credit card information consists of the credit card number, expiration date, etc. The best thing…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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.