Scheduled loan payments of $1146 due in 6 months and $1147 due in 15 months are rescheduled as a payment of $774 due in 39 months and a second payment due in 45 months. Determine the size of the second payment if interest is 4 5% compounded quarterly and the focal date is 45 months from now.

Q: The interest rate for the first five years of a $91,000 mortgage loan is 5.25% compounded…

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

Q: Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be…

A: Time value of money is a concept of interest consideration in a transaction. Present value is…

Q: Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing…

A: To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT. To open…

Q: Scheduled payments of $732 due one year ago and $1476 due in six years are to be replaced by two…

A: Two scheduled payments are to be replaced by two equal replacement payments. Quantum and timing of…

Q: A student loan is offered under the following conditions: credit of 30, 000 euros at 3% over a…

A: The objective of the question is to calculate the constant annuities of a student loan and to draw…

Q: A student loan is offered under the following conditions: credit of 30, 000 euros at 3% over a…

A: The objective of the question is to calculate the constant annuities of a student loan and to draw…

Q: Payments of $1,200 in 1 year and another $2,500 in 6 years to settle a loan are to be rescheduled…

A: Here, Payment in year 1 is $1,200 Payment in year 6 is $2,500 Reschedule payment in 14 months is…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: A loan of P12, 500 is to be repaid with equal quarterly payments for one year with an interest of 6%…

A: Amortization table is a schedule which shows periodic lease or loan payments. The periodic payment…

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: Construct an amortization schedule for a 15-year, $300,000 loan with a 4.2% interest rate compounded…

A: Amortization schedule refers to the statement showing the details of the loan amount, interest…

Q: cheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: In this we have to calculate the present values of both options and equate them with payment.

Q: $20,000 loan is being repaid by installments of $400 at the end of each month for as long as…

A: Amortization schedule is a table in which period payment or installment paid and the amount of loan…

Q: Scheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: Two debts, the first of $600 due nine months ago and the second of $1700 borrowed one year ago for a…

A: Future value of a present value is the value of that amount after taking into account the time…

Q: Find the interest refund on a 35​-month loan with interest of ​$2,834 if the loan is paid in full…

A: Data given: Total months =35 Remaining months = 13 Interest =$2834 Find=Interest refund=?

Q: A debt of $40 000 is to be repaid in installments due at the end of each month for seven years. If…

A: Payments refer to the regular fixed cash flow made against the debt amount in order to repay it over…

Q: A loan is being repaid with 20 payments of 1500 at the end of each year. Interest is calculated at…

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Q: Scheduled loan payments of $1105 due in 9 months and $1216 due in 24 months are rescheduled as a…

A: The time value of money is a fundamental concept in finance that recognizes the idea that the value…

Q: A 44 month loan has monthly payments of $412. If the interest rate is 8.1%, compounded monthly, find…

A:

Q: A 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to…

A: we will only answer the first three subparts . For the remaining subparts, please resubmit the…

Q: A loan of $ 8500 is to be repaid in 39 equal monthly installments with the first one paid seven…

A: Here borrowers understand how much they need to budget each month to repay their loan within a…

Q: Payments of $1,600 in 1 year and another $2,300 in 4 years to settle a loan are to be rescheduled…

A: Future value refers to the value of current value of an asset that will be present at some future…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35…

Q: A $40,000 mortgage taken out on June 1 is to be repaid by monthly payments rounded up to the nearest…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: A loan of P 58,000 with interest at 20% compounded quarterly, will be paid by equal periodic…

A: Quarterly Compounding: It is  interest amount that  is earned quarterly on an account. It mean…

Q: A loan of $401,000 at 5.02% compounded quarterly was to be settled with month-end payments of…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: pan of $30,000 is to be financed over a period of 24 months. The agency quotes a nominal interest…

A: in this we have to find equivalent effective interest rate and use as annual interest rate.

Q: A loan of $172,000 at 3.12% compounded quarterly was to be settled with month-end payments of…

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Q: Debt payments of $2,450 and $1,900 are due in five months and ten months, respectively. What single…

A: The PV of the payment series is used to find out the value of the payments at present assuming they…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

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Q: Scheduled payments of $825, $352, and $ 1045 are due in one year, four and a half years, and five…

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Q: find the outstanding balance at the end of 2 years.

A: Loan is the amount borrowed bank in exchange for principal and interest to be paid either at the end…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Q: what equal end-of-the-month payment for 24 months would be required in order to repay the loan?

A: Monthly compounding Variable interest rate:  Amount= P×1+r1nnt1+r2nnt-P where, P is the principal…

Q: The following information is given for a 60-month loan from a bank: Debt repayments are made at the…

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Q: a demand loan of 7000$is repaid by payments of 3500$ after two years, 3500$ after four years and a…

A: To solve this problem, we need to break it down into three parts: Calculate the interest and…

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.