Peter has borrowed $8,600 to pay for his new car. The annual interest rate on the loan is 7.4 percent, and the loan needs to be repaid in four payments. What will be his annual payment if he begins his payment today now? (Round to the nearest dollar.)   a. $2,850 b. $2,656 c. $2,385 d. $2,448

Q: QUESTION 11. Debbie wants to buy a new car. The bank is prepared to give her a loan on the basis…

A:

Q: What rate of interest will you have to get per year if you would like to buy a car for $68,500 at…

A: Rate of interest is the percentage of return that is expected to be generated by investing in the…

Q: You bought a Tesla Model 3 for $30,451 and the auto loan is 60-month fixed rate loan with interest…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: Vipula De Silva has just bought a boat by taking an unconventional 13 year, $82,884 mortgage from…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Derek can deposit $266.00 per month for the next 10 years into an account at Bank A. The first…

A: ParticularsBank ABank BPeriodic Deposit,PMT $              266.00 $ 2,465.00Tenure,years1010Interest…

Q: 8. Give your answers to this question correct to two decimal places. a. Andrew wants to buy a house…

A: Mortgage is a value which is borrowed from other sources like banks and this amount is repaid later…

Q: You borrowed $550,000 from a bank at an interest rate of 50% compounded quarterly to purchase a new…

A: Rate of interest monthly = 50% / 12 = 4.1666% Periods = 12 * 2 = 24 months Monthly Installment =…

Q: Your mother has an annuity that will give her monthly payments for 14 years. She tell you it is…

A: No. of years= 14PV of annuity= $124357Required rate= 11.56%Monthly Payment of annuity =?

Q: Derek will deposit $2,713.00 per year for 16.00 years into an account that earns 10.00 %, The first…

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

Q: Dylan purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You're trying to save to buy a new $205,000 BMW 3 series sedan. You have $55,000 today that can be…

A: Cost of BMW = $205,000Amount available = $55,000Interest rate = 5.4%

Q: 10. Fred wants to withdraw $1800 every month for two years from his account .How much should Fred…

A: The future of deposit includes the amount that was being deposited over the period and also amount…

Q: You want to buy a house and will need to borrow $175.000 The interest rate on your loan is 4.93…

A: PMT is often used in financial formulae relating to loans, mortgages, annuities, and other financial…

Q: Bob is going to pay his mortgage. He can afford $1,832 per month in rent for 24 years. The bank is…

A: Compound interest is a powerful financial concept that refers to the interest earned or charged not…

Q: You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent,…

A: Compound = n = Monthly = 12Present Value = pv = $30,200Interest Rate = r = 8.2 / 12 %Monthly payment…

Q: Question 10: How much can I borrow for the purchase of my first home if I can afford to make monthly…

A: Monthly payment (P) = $ 1000 Annual interest rate = 4.8% Monthly interest rate (r) = 4.8%/12 = 0.40%…

Q: A man needed money for college. He borrowed 6,000 at 16% simple interest per year if he paid 480…

A: Interests are of two main kinds – simple interest and compound interest. In case of simple interest…

Q: question 1

A: ReferencesTownsend, C. (2022). Annuities. In A Risky Business: An Actuary's Guide to Quantifying and…

Q: Martha receives $100 on the first of each month. Stewart receives $100 on the last day of each…

A: In finance, the concept of the time value of money is crucial, emphasizing that the value of money…

Q: Consuelo pays into an ordinary annuity for 40 years. a. If the annuity earns 5.4% yearly interest…

A: The present value of an annuity is the current value of a series of future payments or receipts,…

Q: son.3

A: The objective of this question is to find out how long it will take to save $39,000 by depositing…

Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide to…

A: Solved using Financial Calculator  Assuming Interest rate is 0.9% per annum compounded monthly…

Q: A man needed money for college. He borrowed $6,000 at 12% simple interest per year. If he paid $360…

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

Q: Use a banker's year described above to answer this question. To complete the sale of a house, the…

A: Simple Interest: It is the interest charged on loan/savings account . Calculation: Daily interest is…

Q: Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly…

A: Loan amount=$15000PMT=monthly payment=500NPER=36Find out period required.

Q: You are interested in purchasing a new home for $200,000, but you need to save 20% of the price to…

A: Data given: Price of new home=$200,000 Savings=20% of Price of new home APR=9% n=5 years   Required:…

Q: Derek will deposit $2,713.00 per year for 16.00 years into an account that earns 10.00 %, The first…

A: Annual deposit=PMT=2713NPER=n=16yearsRate=r=10%PV=today value=$14955How much at the end of 50 years.

Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…

Q: at minimum down payment must Asher make to keep his monthly payment at or below $500? und your…

A: Monthly payment of loan includes the payment of principal and interest payment that goes on changing…

Q: Suppose you take a loan of $25,000 for a car for 4 years. The interest rate is 7.5% percent,…

A: Amortization refers to systematic and regular repayment of loan and interest amount during the…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

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.