This months minimum payment if the principal is $27,300. The annual rate is 12% and the method for calculating minimum monthly payment is finance charge + $30 + 3.5% of principal.

Q: A loan is offered with monthly payments and a 17.00 percent APR. What’s the loan’s effective annual…

A: Given; Nominal interest rate (r): 17% Time period (n): 12 months

Q: An installment contract for the purchase of a car requires payments of $311.25 at the end of each…

A: The amount financed for the car is approximately $16,900.60. The total interest cost over the 5…

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: Cray Computing needs a 5-month loan for $300,000. Its bank quotes a simple interest rate of 15% on…

A: Therefore, the estimated APR for the loan, assuming monthly compounding, is approximately…

Q: Find the i (the rate per period) and n (the number of periods) for the following loan at the given…

A:

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: Find the amount of the final payment if it is to be larger than the regular payments.

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

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: Find the payment necessary to amortize a 12% loan of $1300 compounded quarterly, with 8 quarterly…

A: Amortization is the process of paying off a debt, such as a loan or mortgage, in regular…

Q: A loan is offered with monthly payments and a 13 percent APR. What’s the loan’s effective annual…

A: Effective Annual Rate (Monthly Compounding) = [ 1 + APR / 12 ]12 - 1

Q: An installment contract for the purchase of a car requires payments of ​$217.43 at the end of each…

A: Interest expenses The amount that the borrower pays for the funds borrowed is called the interest…

Q: A debt of $5,000.00 is to be paid off with 6 equal semi-annual payments. If the interest rate is 15%…

A: The annuity refers to the equal payments that can be expected from an investment or it can also…

Q: A loan of 10.000 TL is repaid in equal annual installments at 10% effective interest rate per year.…

A: Given: Loan amount= 10000 TL Annual effective rate =10% Interest amount in third payment = 868.24…

Q: For 20-year, $100,000 loan at 4.5% APR (same as above) what portion of the monthly payment in Month…

A: A loan is a borrowed amount by one person from another person. The borrower expects to pay 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: Calculate the present value of a loan that could be cleared by payments of $3,350 at the end of…

A: Here,Semi Annual Payments (PMT) is $3,350Time Period (n) in years is 7 yearsInterest Rate (r) is…

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: You take out $17,300 loan that will be paid off in six equal installments. The stated annual…

A: APR can be referred to as the effective interest rate that takes into account the amount of the loan…

Q: How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for…

A: Here, Time Period of Loan is 4.5 years Loan Amount (PV) is $4,887 Interest Rate on Loan is 7.4%…

Q: Consider a student loan of $18,000 with an APR of 6.2% for 7 Years with monthly compounding and…

A: Monthly effective interest rate = APR/12 = 0.062/12 = 0.005167 Total Term of Loan = 7*12 = 84 months…

Q: A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring…

A: monthly payment formula: monthly payment=p×rm1-1+rm-m×n where, r=rate p=principal m=frequency of…

Q: Find the payment necessary to amortize a 12% loan of $2300 compounded quarterly, with 12 quarterly…

A: PMT stands for "payment." In finance and accounting, PMT refers to a fixed payment amount made by a…

Q: A $35,000 loan at 4% compounded quarterly is to be repaid with six equal quarterly payments. The…

A: The total present value of all future installments to be paid is equal to the current value of loan.…

Q: after

A: So per quarter k = 10/4= 2.5%,  Loan Maturity = 10 years= 10* 4= 40 times = n We must know the…

Q: The advertised month-end financing payments on a $28,757.72 car are $699 for a four- ear term. What…

A: Loan amount =28757.72Monthly payment =699Period of loan =n=4 years =48 months Find out effective…

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.