Select the correct choice that completes the sentence below. The rebate amount is equal to the rebate fraction O A. multiplied by the total finance charge O B. multiplied by the number of months of a loan OC. divided by the number of weeks of the loan O D. divided by the total interest

Q: 4. Use MV = P(1 + RT) to find the maturity value (in $) of the loan. Principal Rate (%) Time…

A: The maturity value is calculated as sum of principal and interest earned

Q: 7. Calculating finance charges using the discount method and APRon a single-payment loan You are…

A:

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Principal Amount = p = $7310 Interest rate = r = 7% Time = 13 days

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Rate…

A: Ordinary interest, also known as simple interest, is a method of calculating interest on a loan or…

Q: Calculating finance charges using the discount method and APRon a single-payment loan You are taking…

A: financial charge =p×r×tloan disbursed = principal - financial charge APR=FINANCE CHARGEPRINCIPALN

Q: Which of the following is the cheapest for a borrower? 6.7% annual money market basis 6.7%…

A: Interest rate are compounded than effective interest rate is more and effective interest rate is…

Q: Over the life of a fixed payment amortized loan, such as a conventional mortgage, the proportion of…

A: Conventional loans are the types of home loan which are not secured by the government securities. On…

Q: Suppose that you took out a loan at 12% interest for 200 days. If the amount of interest was…

A: Interest rate = r = 12% Time = t = 200 days Interest amount = i = $710.14   Number of days in Exact…

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: (a) What is the rebate fraction of a 36 month loan paid off after the 12th payment? (b) What is the…

A: Rebate: It is the amount of money that is returned or credited to the customer in regard to a…

Q: The is the length of the loan. APR (your response) term interest rate

A: length of a loan refers to the duration of the period, where the person is required to repay the…

Q: (a) Determine the effective rate of interest for 4.275% compounded semiannually. Round your final…

A: Bartleby honor code states that in case of multiple questions, the expert is required to give…

Q: Give an example of a loan repayment plan.Show at least 3 payment entries including the end of period…

A: The funds acquired by the borrower is repaid either in lumpsum amount at a future date i.e. at the…

Q: Identify the types of information that can readily be deter-mined from an amortization table for an…

A: Meaning of amortization table Amortization table is a table which consists of all the details…

Q: 1. Construct a partial amortization schedule showing the last 2 payments. PMT Setting N I/Y P/Y C/Y…

A: An amortization schedule is used to show the components of the periodic payment, i.e., how much of…

Q: Calculate the missing information for the installment loan that is off early. Sum-of-the-…

A:

Q: For the second mortgage application, calculate the percentage of appraised value and the potential…

A: The appraisal value of a property is an master assess of its worth, regularly conducted by a…

Q: .The portion of the selling price paid by the customer at the time of purchase is called ________.…

A: Customers have to pay some amount to purchase on loan.

Q: What is Debt Service?

A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…

Q: For the second mortgage application, calculate the percentage of appraised value and the potential…

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

Q: (J) A borrower has two alternatives for a loan: (1) issue a $185,000, 60-day, 4% note or (2) issue a…

A: Issue amount185000Interest rate4%Duration of issuance (in days)60Number of days in a…

Q: The interest of a compound interest investmeut or loan can be computed with the formula 1-A-P. The…

A: Because you have posted multiple questions, we will answer the first question only. For the…

Q: A borrower is faced with choosing between two loans. Loan A is available for $82,000 at 6 percent…

A: Here,ParticularsLoan ALoan BLoan amount (PV) $ 82,000.00 $ 82,000.00Interest rate6.00%7.00%Number of…

Q: Which one of the following statements about a fixed-rate mortgage (FRM) loan is correct? a. The…

A: Fixed-rate mortgage Loan A fixed-rate mortgage loan is a loan taken for a home or real estate in…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: We will use the future value calculator with given variables to find out the required information…

Q: The following loan is paid in full before the date of maturity. Find the amount of uneaned interest.…

A: There are various method which can be used to compute the interest charged on a loan. Rule 78 is one…

Q: As a loan is paid off, the   monthly payment increases debt and interest portions do not change each…

A: Interest expenses on loan is calculated on the closing balance of the loan  account on a particular…

Q: Number of Payments Payments Remaining Payments Made 18 3 Sum-of-the- Digits Payments Remaining…

A: When a buyer buys goods on credit, he has to pay the remaining installments after paying the down…

Q: 15. Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days.…

A: The principal amount can be calculated with the help of simple interest function

Q: What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: In this question we need to compute the Exact interest and Ordinary interest. Given: Principal =…

Q: Which of the following statement is true of amortization? The computation of loan amortization is…

A: We take loans to buy things that we cannot afford on our own.  The loan is then repaid through fixed…

Q: ****** An important application of -Select- interest involves amortized loans. Some common types of…

A: To Find: Annual payment First Inerest payment  Principal repayment

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.