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: Phyllis borrowed $1,000 at 2% APR for six months. Use the simple interest formula to calculate the…

A: Calculation of total amount of interest. Year Principle outstanding at opening (A) Interest…

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

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: evin bought a washer and dryer for $1050 but only had a down payment of $150.00. He financed the…

A: In add on method we simply add interest for given period and add to that with principal amount.

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: 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: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

Q: Sean buys a refrigerator for $899. The dealer gave him a 2-year add-on interest loan at 7.8%…

A: A method of the loan in which the amount of installment is evaluated by combining the principal and…

Q: Marc has purchased a new car for $15,000. He paid $2,500 as down payment and he paid the balance by…

A: Here,Purchase Price of Car is $15,000Down Payment is $2,000Therefore, Loan Amount (PV) is:Interest…

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: Anna is buying a house selling for $285,000. To obtain the​ mortgage, Anna is required to make a…

A: Loans are paid by easy simple monthly payment which makes it easier to pay the loan and these equal…

Q: for just one year of spending $100 on dinner every other saturday how much would debbie pay in…

A: For one year of spending $100 every other Saturday, the total number of charges would be:Number of…

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: Darla purchased a new car during a special sales promotion by the manufacturer.

A: Interest paid to manufacturer Principal amount (P)=$18,000 Rate of interest (r)=7% per annum Period…

Q: We have to calculate her monthly payment.

A: The process of determining a loan's equivalent monthly installment (EMI) based on the loan amount,…

Q: O $352.28 (plus or minus 1 dollar) O $783.83 (plus or minus 1 dollar) O $360.70 (plus or minus 1…

A: Loan amount=8640Period=9 yearsNumber of payment=n=36Interest rate=9.57Quarterly interest…

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: Tabitha had to pay her friend $900, 4 months ago and she has to pay $630 in 4 months. If her friend…

A: The present value is the current date value of the annuity that can be determined by discounting the…

Q: will owe $6,050 to repay a personal loan she took out to go on vacation. The loan was for a term of…

A: In simple interest there is no interest on the interest and there is interest on the principal…

Q: Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan…

A: Loan is an agreement between lender and borrower where lender agrees to provide funds to borrower.…

Q: While Kate was a student at SA University, she borrowed $16,000 in student loan at an annual…

A: The concept of the present value implies that the money today is  having more worth  than the money…

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: 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: 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: Theresa borrowed $7258.00 compounded monthly to help finance her education. She contracted to repay…

A: Given:

Q: rianne borrowed $6200 to buy a vehicle to drive to school. She plans to study for 3 years, and then…

A: Loans are paid by fixed equal monthly payments that carry the interest and loan amount.

Q: Alice borrows $20,000 to buy a car. She pays 6.6% interest compounded monthly and the loan is for 4…

A: A loan indicates a sum borrowed for s specific purpose. It can be either taken by individuals for…

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…

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.