Sabel converted her loan to light payments which give her an option to pay PHP1,500 every quarter for 5 years. The first payment is due 9 months from now. How much is the amount of the loan if the interest rate is 9% compounded quarterly?

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: The objective of the question is to find out the time period Zack will take to repay his loan by…

Q: Amna has a housing loan of $50,000 over 15 years with a 6% interest rate. According to the Bank he…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Juliana is taking out an $8,700, 3year loan with an APR of 2.31%. What will be the monthly payment…

A: Monthly payment is refer as the regualr amount of fund or payments at monthly time interval. It is…

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Purchase Price = 930,000 Down Payment = 930,000*30% = 279,000 Loan Amount = Purchase Price - Down…

Q: Tom is going to borrow $20000 at an interest rate of 5.25% p.a. calculated quarterly. Tom will make…

A: The interest rate that has been compounded over a certain period is the effective annual interest…

Q: Ava Darling plans to buy a home and can deposit $1,772 per year for the next 5 years.. If the annual…

A: To calculate the future value of Ava Darling's deposits for the down payment, we can use the future…

Q: José borrowed 8100 at 5 1/2% for  three years compounded, semi am annually. What is the future…

A: Future value is the value of an investment or cash flow at a future point in time, based on the…

Q: Reuben has the option of receiving a loan of $13,625 for 8 years at an interest rate of either 4.73%…

A: Future value, FV = P(1+r/k)^n*k  Where P is the loan value. r= rate. k = compounding  n= number of…

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: Loan amount = $3,460.00Semi-annual payment = $114.00Interest rate = 4%

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years

Q: o acquires a loan of $300,000 to be paid off during 6 years with monthly payments. If the…

A: Monthly payments are equal fixed amount of payment that carry the payment for interest and loan but…

Q: Seema takes out a 4 year mortgage for $1,125,000 at an interest rate of i(12) = 2.625%. The…

A: Amortization is a process of gradually paying off a debt or loan over a period of time through…

Q: Assume that you will borrow $400, 000 from a bank that charges 4.5 percent interest compounded…

A: Hi there, As per the Q&A honor code, It must be answered the first question when multiple…

Q: Kyla wants to have an annuity payment of $400, at the end of each six months. Use the appropriate…

A: In this question, the requirement is to find the deposit today, also known as present value. The…

Q: Jacob has just agreed to take a loan that will require him to make payments of $107 at the end of…

A: Loan amount refers to an amount that is paid every month for the repayment of a loan by the borrower…

Q: ava wants to take a loan out a 23,500 loan with a 4.3% APR. can she afford to pay 220 per month for…

A: A sum borrowed to meet specific personal or business requirements is recognized as a loan. The loan…

Q: How much will be in Sarah’s account in 10 years if she deposits $5000 in an account that pays 10%…

A: the balance in the account will be the amount deposited along with the interest accrued over the…

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A: Annuity amount, P = $2,050 Interest rate per period, r = Number of compounding periods, n =

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A: The term "Amortization" refers to the process of repaying debt over time by making regular principal…

Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: A couple borrows 275000.00 for a mortgage that requires fixed monthly payments over 25 consecutive…

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

Q: Fernando has the choice of taking out a 25-year loan for $150,000 at 6.6% interest, compounded…

A: Annuity payments refer to the set of fixed periodic payments that an investor or a depositor makes…

Q: Connie wants to have an annuity payment of $2,150 at the END of every three months. How much should…

A: The amount required to deposit now can be calculated as the present value of ordinary annuity.

Q: Angelica took out a 20-year loan for $170,000 at 5.4% interest, compounded monthly. What is her…

A: The monthly payment is determined by dividing the loan amount from the present value factor. The…

Q: Alan's monthly payments of $600 will pay off his mortgage loan in 7 years and 5 months. The interest…

A: Here, Monthly Payment (PMT) is $600 Interest Rate (r) is 6.6% Compounding Period (m) is Monthly i.e…

Q: Cornelia will borrow $300,000 from the bank as a mortgage on her new home. The posted rate is an APR…

A: APR or annual percentage rate is the interest rate per year without taking into the compounding…

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.