You want to buy a new car. You can afford payments of $450 per month and can borrow the money at an interest rate of 3.1% compounded monthly for 5 years. How much are you able to borrow? $ How much interest do you pay? $

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

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A: Given: Loan borrowed = $25,000 Interest rate = 6.2% years = 4

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A: Future Value refers to the value of the current asset at any specified future date for a given…

Q: What is the payoff amount for the loan?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

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A: The calculation of a loan's monthly payment is the subject of the topic. This is a typical financial…

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A: The monthly payment is :The aim is to find the initial loan amount

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A: Personal finance encompasses financial decisions and strategies that individuals make to manage…

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A: A= $220 R= 1% N= 60

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A: Calculation of number of periods: Answer: It will take 26.77 years to save an amount of $20,000

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A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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A: Concept is of present value. Present value is the current value of a future cash flow at a specified…

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A: Using excel PV function

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A: Formulas: PVF is the present value factor PV is the present value.

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A: The objective of this question is to find out the total amount that can be borrowed given the…

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A: The question is based on the concept of repayment of loan at fixed interval and regular payment .the…

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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.