Thomas just bought a new Ford F-150 for his business. The price of the vehicle was $35035. Thomas made a $4682 down payment and took out an amortized loan for the rest. The car dealership made the loan at 0.089 interest APR compounded monthly for five years. He is to pay back the principal and interest in equal monthly installments beginning one month from now. Determine the amount of the monthly payment.

Q: Miss Clare Jarrett just closed a loan of $400 000 to assist with the purchase of equipment and…

A: Loan Amount = $400,000 Time Period = 5 Years Interest Rate = 8%

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A: Equivalent amount distributes present worth into equivalent uniform value over its useful life.

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A: Computation:

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A: In simple interest there is interest on the loan amount only and there is no interest on interest…

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A: We need to use present value of annuity formula given below to calculate monthly payment amount…

Q: Mr. Jefferson had a new heating system installed in his office. The balance owing to the heating…

A: Given, Balance owed is $22,000 Nominal rate is 3.08%

Q: Marc has purchased a new car for $15,000. He paid $2,500 as down payment and he paid the balance by…

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A: Home cost = $260,000 Maturity = 15 years Interest rate = 8% Deposited amount = $20,00 Expenses:…

Q: Wade Ellis buys a new car for $16,759.78. He puts 10% down and obtains a simple interest amortized…

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A: Using excel RATE function

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Q: Three years ago the biggs purchased a house for So made a down payment mortgage with BMO for the…

A:

Q: Mr. Park plans to loan 500,000 from a bank to replace his old equipment. The bank approved him the…

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Q: and the interest is 12% compounded monthly

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Q: While buying a new car, Mitchell made a down payment of $1,000 and agreed to make month-end payments…

A: Compound = Monthly = 12Down Payment = dp = $1000Payment = p = $240Time = t = (4 * 12) + 9 = 48 + 9 =…

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A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…

A: Given: Maturity Value "M" = P405630 Proceeds = 83.84%*P405630 = P340080.192 Number of years = 12…

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A: Loan is an agreement between lender and borrower where lender agrees to provide funds to borrower.…

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A: Borrowing at time 0 = 2000 Repayment 1 at time 1 = 1300 Repayment 2 at time 4 = 1700

Q: Jane requested a loan from the bank amounting to 312,870 to continue her small business. But she…

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Q: Phillip purchased a machine for $20,000 for his company. He paid 5.00% of this amount as a down…

A:

Q: (a) Find her monthly payment. $  (b) Find the total interest. $  (c) Prepare an amortization…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Price of Home = $260,000 Down Payment = 25% Down Payment Amount = $65,000 Financed Amount = Loan…

Q: Mr. Harrington had a new heating system installed in his office. The balance owing to the heating…

A: Here,

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A: The arithmetic gradient formula is an important time value of the money method that determines 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.