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: A loan is being repaid with payments of $1,500 at the end of each quarter. If the loan will be…

A: Payment Amount (PMT) = $1500Loan duration (Number of years) = 5 yearsNumber of compounding period…

Q: A demand loan of $3000.00 is repaid by payments of $1500.00 after two years, $1500.00 after four…

A: A. Amount outstanding at the end of 2nd Year           $ 3000 (1+0.08/2)2x2 $3509.57568 B.…

Q: A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interes rate is…

A: Loan Amount = Monthly payments * [ 1- [1/(1+r)^n ] / r  where r is the monthly rate = 3/12 = 0.25  n…

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 $15 000.00 loan requires payments at the end of each month for five years. If the interest rate on…

A: Present value of annuity formula.PV = A*wherePV = present value of annuityA= periodic paymentsr=…

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: 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: , find the monthly payments or

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

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: 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: 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…

A: In the question above. With prospective method we will discount all the outstanding payments due on…

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 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: An interest-only ARM is made for $218,000 for 30 years. The start rate is 5 percent and the borrower…

A: It is the process of paying the loan by making periodic and regular payments. These payments include…

Q: A $30,000 loan with an interest rate of 9% compounded monthly was repaid, after a period of…

A: Here, Loan Amount is $30,000 Interest Rate is 9% Monthly Payments is $450 Time period of Monthly…

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 $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: How much interest would you be paying in the 75th month?

A: Amortization is the process of repaying the loan over time. In an amortizing loan, a portion of each…

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

A: The term equivalent payment considers the original amount along with the interest to date. The…

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: Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments…

A: Answer Loan amount = $20,000 Interest rate = 5%

Q: Consider a loan of $5.2 million that is paid quarterly over a period of 15 years. Calculate the…

A: Loan amortization is the process of paying off a loan over time with regular, fixed payments. Each…

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…

Q: Scheduled payments of $721 due two years ago and $464 due in four years are to be replaced by two…

A: Two future payments are to be replaced by two equal payments. Timing of all the payments are known.…

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.