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: 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 $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: A debt pf $47,000 is repaid by payments of $4,333 made at the end of every six months. Interest is…

A: A loan agreement is a critical document that outlines the terms and conditions of a loan, protecting…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

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: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: Prepare an amortization schedule for a four-year loan of $165,280. The interest rate is 4% per year,…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

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: 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: 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 business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if…

A: Loan = 800,000 N = 2 years Effective rate of interest = 8%

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: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: The objective of the question is to find out the balance of the loan before the following payments…

Q: Ten annual payments at an interest rate of 7% are made to repay a loan of $9000. Build the table…

A: Yearly Payments implies, regarding any Material Contract, the aggregate sum of the installments…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

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

A:

Q: is amortized by level payments made at the end of each quarter for 25 years.Tge monthly rate is…

A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…

Q: The portion of the payment that is applied to interest in year 1-4 is

A: Simple interest is a method of calculating the charge on a loan. Simple interest is calculated for…

Q: Amount Rate Time ​$63,000 12​% 3 years table of monthly payments on a​ $1,000…

A: Loan amount (PV) = $ 63000 Annual interest rate  = 12% Monthly interest rate (R) = 12%/12 = 1%…

Q: Prepare an amortization schedule for a five-year loan of $70,000. The interest rate is 9 percent per…

A: Loan amount = $70,000Interest rate = 9%Number of years = 5 years

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 $55,000 loan is 8.2% compounded semiannually. Quarterly payments will pay off…

A: Here, Loan Amount $ 55,000.00GivenInterest Rate8.20%GivenTime Period in years14GivenCompounding…

Q: Quarter-end payments of $1,490 are made for 8 years to settle a loan of $31,880. What is the…

A: Compound = n = Quarterly = 4Payment = pmt = $1490Time = nper = 8 * 4 = 32Present Value of Loan = pv…

Q: $2350 was borrowed 4-years ago, is to be settled by following payments: $1175 today, $1030 in…

A: To solve this question, we need to calculate the balance of the loan at different points in time,…

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: A loan requires that payments of $580 be made at the end of each month for a total of 180…

A: It is a case of calculation of the present value of a monthly annuity. The monthly annuity is the…

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 is repaid by making payments of $3456 at the end of every 3 months for 10 years. If interest…

A: We take loans to buy expensive things or large ticket items like a house or a car. These items…

Q: A 18-year loan requires month - end payments of $627.33 including interest at 9.2% compounded…

A: Present value refers to the discounted value of the future cash flow.

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: What is the nominal annual rate of interest compounded monthly if a 9-year loan of $57,300 is repaid…

A: Here,LoanAmount is $57,200Time Period of Loan is 9 yearsMonthly Payment of Loan is $781.91

Q: Debt payments of $2,350 and $1,050 are due in five months and ten months, respectively. What…

A: Payment in five months (m5) = $2,350Period of first payment (t1) = 5 monthsPayment in nine months…

Q: A loan of $1500 is to be repaid by annual payments of $250 to commence at the end of the fifth year…

A: Loan balance at 5th year = Present value*(1+rate)^years Loan balance at 5th year = $1,500 * (1+5%)^4…

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.