Rebecca borrowed $20 400 from her local credit union to pay for the upgrades in her kitchen. She wants to pay the loan with monthly payments over the period of 3 years. What is the interest included in the tenth payment, if the rate charged by the credit union is 6% monthly?

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: Dagmar has a 4-year car loan at an annual interest rate of 7.5%. She has made 26 payments of…

A: Total number of payment over the entire duration of loan = Number of years×Number of months in a…

Q: Stacy took out a loan for $15,000. Her note was for 300 days at 5% ordinary interest. On day 100 she…

A: The formula for calculating simple interest Simple Interest(I) = P*r*t Where, I = Interest Amount P…

Q: Alice borrowed $8,000 from her grandmother to buy The interest rate being charged is 4.5% compounded…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: Carol borrows $27,663 to help pay for expenses. The loan is for 7 years and carries an annual rate…

A: Amortization is a financial concept that refers to the gradual repayment of a debt, typically…

Q: Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual…

A:

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 5.7% and a…

A: The computation of payoff of the loan is as follows:

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: A couple borrows $935,000 for 7 years for the purchase of a vacation home at interest rate of 7…

A: The objective of the question is to calculate the annual payments on a loan and the reduction in the…

Q: Mia Sato purchased a new condominium for $225,000.  The bank required a $40,000 down payment.…

A: The first step is to determine the amount of the loan. This is done by subtracting the down payment…

Q: Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a…

A: APR stands for Annual Percentage Rate. It is a standardized way of expressing the total cost of…

Q: Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded…

A: i) Monthly Payment: Solved using Financial Calculator  PV = - 85,000 I/Y = 3.7/12 = 0.3083333333 N =…

Q: Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000…

A: Introduction Interest may be defined as those types of monetary payments which are made for…

Q: s a gross monthly income of $3,900. She has 15 remaining payments of $189 on a used car. The taxes…

A: TDS is the total debt ratio that is the ratio of the monthly housing payment plus other debt divided…

Q: Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest…

A: Loan amount = $300,000 Initial interest rate = 2.75% Initial payment = $1,224.72 After 5 years,…

Q: Angelica received a 12-year non-subsidized student loan of $18,000 at an annual interest rate of…

A: A non-subsidized student loan is a loan that does not require any interest to be paid during the…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $5,400 in debt.…

A: Credit card debit amount is treated as the debt amount or loan amount which is required to be paid…

Q: Theodora received an 8-year PLUS Loan of $17,000 to attend law school for her last 2 years. If the…

A: Step 1 The amount paid each month to repay the loan over the course of the loan is known as the…

Q: Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent…

A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly  PMT find out using Excel:…

Q: Helen is buying a $12,375 car with a $3,000 down payment, followed by 36 months of $325. The down…

A: Price of car = $ 12,375 down payment = $ 3000 number of payments = 36 monthly payment = $ 325…

Q: Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the…

A: Purchase price of the furniture is present value of monthly payments plus down payments

Q: Ashley took out a student loan for $12,544. The loan had annual interest of 6.9%. She graduated five…

A: A subsidized loan is a loan where the government provides the interest on the loan for the entire…

Q: o buys a koi fishpond (and fish to put in it for his wife on their anniversary. He pays $8000 for…

A: In add on loans all interest for three year is added at one time and than monthly payment is done…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is…

A:

Q: Jenna bought a new car for $⁢28,000. She paid a 20% down payment and financed the remaining balance…

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

Q: ydia borrows $2000 from a credit card company at 23% annually for two years. Determine Lydia’s…

A: Solution: Amount borrowed =$2,000 Monthly interest rate = 23%/12 = 1.916666% Nos of monthly periods…

Q: Alien Jackson has $2,000 on her credit card which charges a 23% interest rate. If she wants to pay…

A: It is a case of amortization of a loan that is to be paid in 4 years on a monthly basis. To repay…

Q: Janet borrows $3500 from a credit card company at 22.5% annually for 3 years. Determine Janet’s…

A: Borrowed amount (B) = $3500 r = 22.5% per annum = 1.875% per month n = 3 years = 36 months Let the…

Q: Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest…

A: The credit card information consists of the credit card number, expiration date, etc. The best thing…

Q: She will owe $____ on the car immediately following the 18th payment. A. 18,858.19 B. 18,531.57…

A: Monthly payments refer to the set sum of money that a borrower must pay back on a loan each month.…

Q: Nona purchased a new car earlier today for $24,000. She financed the entire amount with a five-year…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: essica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had…

A: We need to use future value of ordinary  annuity  formula to calculate monthly payment PMT =…

Q: Zoey Bettincourt gets a $400,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest…

A: 5/1 ARM: 5 refers to fixed period of the mortgage i.e., first 5 years and 1 refers annual interest…

Q: Valerie refinanced her home loan. The new loan of $103,000.00 has an interest rate of 5.9%…

A: Here, Loan amount = $103,000.00 Interest rate = 5.9% compounded monthly Term of loan = 21 years To…

Q: Nona purchased a new car earlier today for $33,000. She financed the entire amount with a six-year…

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

Q: Todd is able to pay $360 a month for 6 years to finance a car purchase.  a. If the interest rate is…

A: Per month payment=$360Number of months=6×12=72Rate per month=6% compounded monthly

Q: Heather deposited $1, 700 at her local credit union in a savings account at the rate of 9.8% paid as…

A: The objective of the question is to calculate the total amount of money that the credit union would…

Q: Jennifer Kaufman bought a used Toyota Prius for $16,500. She made a $4,500 down payment and is…

A: First of all we will need to find the loan balance. Loan amount = Car price - Down payment = $16,500…

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.