Month-end payments of $1,410 are made to settle a loan of $119,660 in 8 years. What is the effective interest rate? % Round to two decimal places

Q: What are the interest cost and the total amount due on a six-month loan of $2,100 at 13.5 percent…

A: Simple annual interest cost is the net amount of interest that is being charged on the principal…

Q: delta corporation obtained a $45, 000 loan at a rate of prime +1.15% on July 18. Fixed payments of…

A: The objective of the question is to calculate the outstanding loan balance of Delta Corporation…

Q: A loan of $2982 is repaid in three years. Find the amount of interest paid on the loan if it is…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: You agreed to make equal payments of 28,191 at the beginning of each months to discharge a debt due…

A:

Q: A loan is released today to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: The loan is the amount that a borrower receives from the lender and pays it back in future along…

Q: A $4,500 loan at 8.4% compounded monthly was settled by a single payment of $5,500 including accrued…

A: Formula: A = P x (1 + r)n A = ending balanceP = starting balancer = interest raten = the number of…

Q: A 161,781 loan is being repaid with monthly payments for 8 years. The first payment is 800 and is…

A: A loan is a contract between a lender and a borrower where the lender forwards a fixed amount to the…

Q: What payment is required to pay off a loan of $ 2,550.00 at 6.9% sixteen months later?

A: Future value is the amount we get on the investment at a particular rate of return.. In this case,…

Q: A $4,800 loan at 9.0% compounded monthly was settled by a single payment of $5,800 including accrued…

A: Loan amount or Present Value = $4,800Interest rate = 9%Future Value = $5,800

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: A demand loan for $5409 08 with interest at 4.2% compounded annualy is repaid after 6 years, 8…

A: Compound interest also called interest on interest. It is the addition of interest in the principal…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: The objective of this question is to find the effective interest rate of a loan that is being paid…

Q: Monthly payments of $230.85 are made for 7 years to repay a loan at 5.65% compounded mont (Type an…

A: Monthly payment = $230.85 Year = 7 years Rate =5.65% Compounded monthly

Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: The objective of the question is to find the effective interest rate of a loan that is being paid…

Q: The interest rate on a $57,000 loan is 8.6 % compounded semiannually. Quarterly payments will pay…

A: An amortized loan has been presented with all the details. Several questions follow on the interest…

Q: A demand loan for $7745.46 with interest at 7.4% compounded quarterly is repaid after 6 years, 2…

A: Loan amount (P) = $ 7745.46 Interest rate = 7.4% Quarterly interest rate (r) = 7.4%/4 = 1.85% Period…

Q: What is the payment in month 13 on a CAM loan for $150,000 with a maturity of 15 years at 5.85%?…

A: Debt refers to the owed capital that the corporations or individuals employ, it requires the…

Q: A mortgage of $34,000 is repaid by making payments of $280 at the end of each month for 14 years.…

A: Amount of mortgage = $34,000Monthly payments = $280Tenure = 14 years

Q: What is the loan payment on a fixed-rate/fixed-term mortgage loan of $250,000 at 8% for 15 years?…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

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A: The objective of this question is to find the effective interest rate charged on a loan of $138,160…

Q: Find the semi-annual payment at the end of six months, the first payment is due at the end of 7.5…

A: An annuity is a type of security where periodic payments are made over a period of time. Deferred…

Q: Month-end payments of $1,450 are made to settle a loan of $123,700 in 8 years. What is the effective…

A: Month-end payments = $1,450Loan amount = $123,700Number of years = 8 years

Q: A loan of $28,500 is repaid by payments of $725 at the end of every month. Interest is 3.4%…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of…

A: Here, Loan Amount is $30,000 Interest Rate is 9% Monthly Payments is $450 Time period of Monthly…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: A mortgage of $38,000 is repaid by making payments of $270 at the end of each month for 13 years.…

A:

Q: A loan of $401,000 at 5.02% compounded quarterly was to be settled with month-end payments of…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: The Interest rate on a $56,000 loan is 8.4% compounded semiannually. Quarterly payments will pay off…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: a. Calculate the interest component of Payment 13. Interest b. Calculate the principal component of…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Debt payments of $2,450 and $1,900 are due in five months and ten months, respectively. What single…

A: The PV of the payment series is used to find out the value of the payments at present assuming they…

Q: The interest rate on a $63,000 loan is 9.5% compounded semiannually. Quarterly payments will pay off…

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

Q: The exact interest on a loan of P3728 at 7.4% annual simple interest for 95 days is Round your…

A: The rate at which you borrow or lend money is called simple interest. If a borrower takes money from…

Q: compounded quarterly, what was the loan principal?

A: Information Provided: Years = 20 Monthly payment = $1700 Interest rate = 5.70% compounded quarterly…

Q: A loan of $28,000.00, made 6 months ago, will be repaid by 3 equal payments – one today, one in 11…

A:

Q: A mortgage of $38,000 is repaid by making payments of $270 at the end of each month for 13 years.…

A: The nominal annual rate of interest is the base interest rate for a loan or investment that is…

Q: A demand loan for $10,088.75 with interest at 7.1% compounded annually is repaid after 4 years, 8…

A: Individuals and entities often take loans to finance something. A demand loan is that loan which has…

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.