Personal loans Payday loans Student loans [Choose ] [Choose ] are offered to college students and their families to help cover cost of higher education. are short-term, high-interest loans designed to bridge the gap from one paycheck to the next can be used for any expense and doesn't have a designated purpose. [Choose ]

Personal loans Payday loans Student loans [Choose ] [Choose ] are offered to college students and their families to help cover cost of higher education. are short-term, high-interest loans designed to bridge the gap from one paycheck to the next can be used for any expense and doesn't have a designated purpose. [Choose ]

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6LO

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25. The following are features of personal loans offered by banks except A. fixed repayment tenure B. online loan application C. loan amount depends on monthly income D. affordable monthly installment
Loan Servicing Companies.. O Collects monthly payments, remits to investor O Purchase loans on the secondary market O Decide on credit criteria for new loans O Underwrite home loans
Which of the following is a feature of a home equity loan? Group of answer choices a. The interest rate on a home equity loan is higher than that on other loans. b. The interest paid on a home equity loan is usually tax deductible. c. A home equity loan is generally the first mortgage loan. d. A home equity loan is a single-payment loan. e. A home equity loan is an unsecured loan.
Suppose you are a regular employee in a finance company that offers a loan payable through salary deduction. One of its privileges is availing a loan that offers a 5% interest compounded annually for 1 to 5 years. You are thinking to apply for a loan but you wanted to analyze if you can shoulder the monthly payment. Make a loan schedule and fill up an application form that will help you decide the amount of loan that you will make Loan Schedule Loan Amount Maturity Value Monthly Payment t=1 t=2 t=3 t=4 t=5 P10,000 P20,000 P30,000 P40,000 P50,000 P100,000 P150,000 P200,000 P250,000
Can borrowers pay off part, or all, of loans any time that they desire?
Buy On Time or Pay Cash Cost of Borrowing 1. 2. 3. 4. 5. 6. 7. 8. Cost of Paying Cash 9. 10. Terms of the loan a. Amount of the loan b. Length of the loan (in years) c. Monthly payment Total loan payments made ($ per month Less: Principal amount of the loan Total interest paid over life of loan Tax considerations: - Is this a home equity loan? - Do you itemize deductions on your federal tax return? What federal tax bracket are you in? Taxes saved due to interest deductions ($ %) Total after-tax interest cost on the loan X months) Annual interest earned on savings (6% X Annual after-tax interest earnings ($ %) X $10,000.00 5 $188.70 no yes 35% $ $ $ 00 00 $
You are considering taking out a 15-year loan versus a 30-year loan for a home. Explain what the pros and cons of both loan types are. Be sure to add appropriate detail to receive full credit. BIUS IE 블 Insert Formula X₂ X² 三星E
7. Calculating finance charges using the discount method and APRon a single-payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done the way they’re computed using the simple interest method. Under the discount method, a borrower receives the principal the finance charges. For example, if the principal is $8,000 and the finance charges are $720, the borrower will receive $ . The following equation computes the finance charges on your loan: FdFd = FsFs = P r t In the equation, FdFd is the finance charge for the loan. What are the other values? P is the amount of the loan. r is the stated rate of interest. t is the term of the loan in . You’re borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal…
Benefits of account holders in home loans ؟
This payment type is essentially a short term loan up to a predetermined amount. O Debit Card O Credit Card O Mobile Payment O Mobile Wallet
How does compound interest make your money "work for you"? Multiple Choice O It provides an interest deduction when you pay your loan off early. You earn interest on interest in addition to interest on principal. It provides an interest deduction if you take out a loan for longer than one year. It provides higher interest rates on larger loans with longer time horizons.
7. Calculating finance charges using the discount method and APRon a single-payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done the same way they’re computed using the simple interest method. Under the discount method, a borrower receives the principal less the finance charges. For example, if the principal is $6,000 and the finance charges are $900, the borrower will receive $5,100. The following equation computes the finance charges on your loan: FdFd = FsFs = P x r x t In the equation, FdFd is the finance charge for the loan. What are the other values? P is the principal amount of the loan. R is the stated annual rate of interest. T is the term of the loan in years. You’re borrowing $4,000 for a year and a half with a stated annual interest rate of 10%. Complete the following table. (Note: Round your answers to the nearest dollar.)…