Scenario 2: You need a $12,000 loan to buy a good used car. Your bank offers a 3-year loan with an APR of 5% and a 5-year loan with an APR of 8%. Find the monthly payment and total interest paid for each loan option. Which would you choose? What is the better deal?

Q: Explain the alternatives in accounting for prepaids.

A: Prepaid expenses: Prepaid expenses refer to the payments which are made in advance and the amount…

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley at the…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: rcome Sement on the nohe payat henote cone

A: The balance sheet represents the financial position of the business on a particular date.

Q: What are the special forms of payment? Give examples for each.

A: Unless otherwise stated, the obligation to deliver begins when the contract is signed. The creditor…

Q: how we can use ecxel marco for financial atsk?

A: Macros and VBA for Excel are commonly used in the financial modeling plan for the development and…

Q: Micheal on 31st August 2014; SOUTHBANK Colornbo St Branch PAY THE SUM OF RANSFERABLE PAYEE ONLY bay…

A: Check: Check or cheque is used for payments related to purchasing assets, paying expenses, and…

Q: D Calculate for the cells highlighted in yellow Time Value of Money problems For these problems…

A: Income statement: Net income = Deduction of expenses from revenues called Net Income / ( Loss ) Net…

Q: How do I calculate the interest in excel?

A: Please follow the whiteboard for calculations and formula to determine the appropriate interest…

Q: If Barry's gross income was $71,490 how much does he need to pay in taxes? Use the table and…

A: Start with the gross income: $71,490Subtract the standard deduction: $71,490 - $5,700 =…

Q: Answer is not complete. Complete this question by entering your answers in the tabs below. Required…

A: The Pro Forma Income Statement is a document that shows the company's revenues if certain expenses…

Q: 3. Allied Corporation has zero coupon bonds outstanding that mature in 15 years. Calculate the…

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

Q: preparing a balance sheet, interest receivable goes under what heading?

A: Balance sheet:It is one of financial statement which shows the assets, liabilities and shareholders’…

Q: explain two functions of the credit uniom

A: A credit union is established as a not-for-profit organization (NPO). It consists of members who…

Q: What type of function models a savings account

A: The saving accounts contain compound interest charge on their balances which indicates the…

Q: Suppose that the S&P 500, with a beta of 1.0, has an expected return of 14% and T-blls provide a…

A: Beta is the systematic risk that all companies face in a general way. This risk is non-diversifiable…

Q: Match the following paper payment types with the correct description.

A: Payment types means various modes of payment which are used for the purpose of making payment to…

Q: What is the formula to find net revenue in this spreadsheet?

A: Definition: Revenues: Revenues are earnings from the operations of a business. The operating…

Q: List four main tools or formulas used for doing calculation related loans and describe this method…

A: A loan is when money is lent to another individual in exchange for repayment of the loan principle…

Q: What is a line of credit? Give three examples?

A: Line of credit is the borrowing limit available to a customer by the bank. The customer can borrow…

Q: What is the amount of loan extended to MAPCD Co

A: An extended loan means when the amount of the loan is increased by the lender of the loan. the note…

Q: List and explain the types of financial ratios in lending.

A: Financial Ratios: Financial ratios are the ratios calculated on the basis of financial statements…

Q: Describe the relationship between debit balances and credit balances when it comes to “t graphs”?

A: T-graph or T-accounts: T-account is the form of the ledger account, where the journal entries are…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

Q: hello,please when I want to do a credit scoring based on the ESG factors which excell informations…

A: ESG stands for Environmental, social, and governance. These are the 3 key pillars that are…

Q: What are the three critical ratios that will help you determine financing requirements

A: Financing requirement means the amount for which a firm is required to arrange funds. This fund can…

Q: In its first year of operations, Maria Corp. earned $48,100 in service revenue. Of that amount,…

A: Net income is the amount of income earned by an entity after reducing the expenses from the…

Q: Using the following transactions what is the total debits and credits?

A: Journal entries refer to recording and classyfing business transactions into books of accounts…

Q: Match the following credit terms with the correct description. APR Known as the Annual Percent V…

A: Solution:- There are various banking terms which are used in day to day use in the banking sector.

Q: Which of the following is considered receivables? (select all that applies)  rents   note payables…

A: Receivables are the amounts that are expected to be received by an entity either at present day or…

Q: What are some possible financial decisions in which using the Rate formula might be helpful

A: An interest rate, denoted r, is a rate of return that reflects the relationship between differently…

Q: Suppose the current 1-year discount rate on US government bonds is 3% and the 2- year rate is at 6%.…

A: The 1-year discount rate is 3% (S). The 2-year discount rate is 6% (F). The period is 2 years (n).

Q: Times Interest Earned Ratio A1 Compute the times interest earned ratio and use it to analyze…

A: Here in this question, we are required to calculate the times interest earned ratio. Times interest…

Q: 1. Answer the following questions by analysing the T-accounts given below Materials Inventory Work…

A: Total manufacturing cost is the accumulated total expenses incurred in the process of manufacturing…

Q: Beach Inc., is evaluating investment opportunities and should decide between two mutually exclusive…

A: Note: ‌Since‌ ‌we‌ ‌only‌ ‌answer‌ ‌up‌ ‌to‌ ‌3‌ ‌sub-parts,‌ ‌we’ll‌ ‌answer‌ ‌the‌ ‌first‌ ‌3.‌…

Q: Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Choose a financial ratio, describe what financial statement each variable in the ratio comes from,…

A: A financial ratio is a quantitative measure used to analyze and assess various aspects of a…

Q: Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved…

A: Back-End ratio shows proportion of monthly income used to pay off debt. Back End Ratio=Monthly Debt…

Q: Explain Long-Term Notes Receivable with example.

A: Notes receivable: An asset representing the right to receive the principal amount contained in a…

Q: I need help calculating the interest earned on interest.

A: Calculate the future value as follows:

Q: he wonders what the adjusted cost base would

A: To calculate the adjusted cost base per share, we need to add up all the total costs incurred on…

Q: Kathy Donnelly Enterprises. reported current assets totaling $65,800 and current liabilities…

A: INTRODUCTION: The EBITDA statistic is a form of operating income (EBIT) that removes some non-cash…

Q: what are the principal types of credit scoring models.

A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…

Q: What finance principles can you use during the DMAIC process?

A: The DMAIC structure can be used to systematically optimise business processes. DMAIC is a five-step,…

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.