Multiple Choice Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the interest amount on the 5th payment

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $500 loan for 12…

A: The monthly payment for the loan can be calculated with the help of present value of annuity…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Monthly payment: It is the payment paid by the loan holder to the lender every month in order to…

Q: Calculate the monthly payment by using the loan amortization table: (Round your answer to the…

A: loan amount= $26000 time= 36 months or 3 years Rate=11%   If you borrow $26000 at 11% for 3 years,…

Q: Calculate the monthly payment by using the loan amortization table:  (Round your answer to the…

A: Annuity: An annuity is defined as a series of payments, whether received or made, that are equal and…

Q: A loan of P47,300 is to be amortized by equal payments each month for 6 months . If interest is 12%…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…

A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…

Q: You take one-year installment loan of $1000 at an interest rate of 12% per year (1% per month) to be…

A: Loan amount (L) = $1000 r = 1%  n = 12

Q: What is a monthly payment on a 25 year loan of 70200 if the annual interest rebate is 5%

A: Using Excel PMT function

Q: Calculate the finance charge and the monthly payment on a $20,000 add-on installment loan with an…

A: The equivalent cost is the periodic payment made towards the acquisition of an asset or security for…

Q: Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 14 quarterly…

A: The regular fixed periodic payments made at each periodic interval indicate annuity payments. The…

Q: To borrow $600, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Given: Borrowed amount =$600Annual interest =9%   Amount to be paid =Principal + Interest=$600 +…

Q: Find the payment necessary to amortize a 8% loan of $800 compounded quarterly, with 9 quarterly…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Monthly payments of P8,000 each are used to settle a loan for 8 months at 8% compounded monthly.…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: You are borrowing a loan from Sohar Bank of 14832 OMR at a compound annual Interest rate     of 1%.…

A: Formulas:

Q: A loan of 6 semi-annual payments of P4,500.00 are to be made for a loan at 5 ½ % compounded…

A: A loan is a fund that is borrowed by individuals and corporates. It includes a certain rate of…

Q: Find the monthly payment on an auto loan of 200000 to be akortized over a 5-year period at a rate of…

A: Given Information : Auto loan - 200000 Period - 5 years Rate - 9%

Q: You buy items costing $800 and finance the cost with a fixed loan installment for 18 months at 5%…

A: As we are told that interest rate charged on the loan is simple and not compounding, moreover we are…

Q: Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 15 quarterly…

A: Quarterly compounding is a form of compounding in which interest is earned every quarter and such…

Q: Find the payment necessary to amortize a 8​% loan of ​$1100 compounded​ quarterly, with 19 quarterly…

A: The payment size can be computed with the help of present value of annuity function.

Q: A personal loan for $20,000 has an interest rate of 12% over 5 years with monthly payments. What is…

A: Equated Monthly Instalment(EMI) means a part of the equally divided monthly amount paid for the…

Q: Find the monthly payment for the loan

A: Loan Amount = $200 Time period = 12 months Rate of Interest = 14% Since, loan repayment will be made…

Q: Using the Add-On Method, calculate the monthly payment for a $ 8,500 loan that is borrowed for 3…

A: Under Add-on method, total interest will be calculated considering the simple interest formula and…

Q: A loan is offered with bi-weekly payments (26 payments per year) and a 15.00 percent APR. What's the…

A: Compound = n = Bi weekly = 26Annual Percent Rate = APR = 15%

Q: Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find…

A: Monthly payment  (P)= P 800 Number of monthly payments (N) = 8 Annual interest rate = 8% Monthly…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $700 loan for 12…

A: In this question we require to compute the monthly payment for the loan.

Q: If you borrow $5,300 at $400 interest for one year, what is your annual interest cost for the…

A: The effective interest rate, also known as the effective annual interest rate (EAR) or annual…

Q: Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly, Find…

A: Monthly payment (M) = P 800 Number of payments (n) = 8  r = 8% per annum = 0.667% per month

Q: You make a down payment of $2,500 and finance the balance by making monthly payments of $718.66 for…

A: APR is calculated through following excel formula:APR==rate(nper,pmt,-pv)*12=17.25%Where,nper=24pmt=…

Q: Auto loan requires payments of 300 Rial at the end of each interval for 3 years at a nominal annual…

A: Calculation of Payment Intervals and Accumulated Amount: Excel Spreadsheet: Excel Workings:

Q: If you borrow $5,300 at $900 interest for one year, what is your annual interest cost for the…

A: The effective rate is calculated with the effect of compounding of interest for the frequency given…

Q: Determine the monthly payment if you take out a loan for $ 240000 with an annual interest rate of 7%…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: Find the payment necessary to amortize a 6% loan of $100,000 compounded annually, with 11 annual…

A: Loan amount = $100,000 Interest rate = 0.06 (i.e. 6%) Loan period = 11 years Annual payment = ?

Q: You are preparing a loan amortization table for a 1-year loan of $1000 with a monthly interest rate…

A: Loan amount (P) = $1000Monthly interest rate (r) = 0.01Monthly period (n) = 12 (i.e. 1 year *…

Q: Monthly payments are required on a $45,000 loan at 6.0% compounded monthly. The loan has an…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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.