To buy a car, Mr. Gómez obtains a loan of $200,000 with interest of 15% per year, compounded biweekly. How many biweekly payments of $4,700 must he make to pay off his debt?

Q: You have $5,000 on a credit card that charges a 17% interest rate. If you want to pay off the credit…

A: A credit card is a payment card that allows the cardholder to borrow funds from a financial…

Q: Q. Jayden borrows $10500 from his grandmother for 4 years. Jayden’s grandmother gives Jayden a…

A: While calculating future value using simple interest, the amount of simple interest is only based on…

Q: Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 14.9…

A: Compound = monthly  = 12 Present value = pv = $6200 Interest rate = r = 14.9 / 12% Payment = p =…

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 6.3% and a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: olve step by step the following problem (solve in digital format) Manuel owes the following amounts…

A: In this we need to find out the present value of future payments.

Q: isha is buying a car for $26,000. She has $1,800 for a down payment. She plans prrow the remainder…

A: Using the compounding technique, the future value of a sum has been used to know the future value of…

Q: You have $3,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: A credit card is a payment card that allows the cardholder to borrow funds from a financial…

Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 7% interest. a) How…

A: Amount needed each month depends on time and interest rate and actually much less than original…

Q: Sherry Smart is buying a $350,000 home and will pay the mortgage monthly for 30 years. She has a…

A: Here,LoanAmount is $350,000Interest Rate (r) is 5.125%Time Period (n) is 30 yearsCompounding Period…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: In order to find how much to lend her today one needs to calculate the present value of the amount…

Q: To start her business, Mrs. González obtains a loan of $250,000 with interest of 22% per year,…

A: We can determine the time period by rearranging the formula below and solving for n. In the formula…

Q: Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans…

A: Given: Rule 78 used to calculate the refund interest Duration of the loan : 41 months Months…

Q: Grandpa puts $50,000 into a bank account for you earning 3% compounded monthly. How much will you…

A: Future value refers to the projected or estimated value of an investment, asset, or sum of money at…

Q: Ms. Althea Jordao purchases a home worth Php 1,200,000 with a down payment of 15%. Then she loan the…

A: Home worth = Php 1200000 Down payment  = 15% of 1200000 = Php 180000 r = 7.5% = 0.625% per month n =…

Q: QUESTION 1 A man buys a house for $360,000 He makes a $150.000 down payment and amortizes the rest…

A: It is a case where a house is purchased using a downpayment as well as a loan is taken up to cover…

Q: Marwan just deposited $13,000 into his account at Bank Muscat. The bank will pay 2.3 percent…

A: Deposit amount (P) = $ 13000 Annual interest rate (R) = 2.3% Period (N) = 15 Years

Q: Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took…

A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: If Megan has $35,000 in student loans and wants to pay them down using the standard repayment method…

A: Standard repayment method means paying loan amount in equal payments for 10 yearsPayment per period…

Q: Michelle borrows $7, 200 from her father to buy a used car. She repays him after 9 months, at an…

A: Total amount she repays at the end is calculated using following equation Total amount = P×1+rt…

Q: 2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent,…

A: Deposit = 2000 Interest rate = 3.25℅ N = 5

Q: Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual…

A: future value: value of the present cashflow at future date.

Q: A friend of yours bought a new sports car with a $4,500 down payment plus a $27,000 car loan that is…

A:

Q: A few years down the road you move out, buying your own home. You decide to take another look at…

A: Finance charge: It is the interest rate that is charged on a loan & paid by the borrower along…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Angela's bank gave her a 2​-year ​add-on interest loan for ​$6,120 to pay for new equipment for her…

A: Loan is a value which is borrowed from external sources like banks and this amount is paid later…

Q: Current Attempt in Progress After living in a university residence for one year, Alysha decides to…

A: PV: Present Value (initial deposit or investment)PV=2×$740 (for the first and last month's rent)r:…

Q: Melanie bought a used car for $10,000. (S) he put $100 down and financed the balance with the dealer…

A: The add-on interest is a method of calculation of interest where the interest is added first and the…

Q: 1. Mary Smith took a car loan of $20,000 to make 60 equal monthly payments. The interest compounds…

A: given, P=$20,000 m=12 n=5 r=9%

Q: A man plans to take a vacation in 4 years. He wants to buy a certificate of deposit for $1200 that…

A: We need to use compound interest formula to solve this problem A=P(1+r)n Where A =Amount/Final…

Q: I’m order to start a small business, a student takes out a simple interest loan for 8000 for 3…

A: Simple interest is calculated for the amount that is invested. Simple interest rate is calculated by…

Q: Chris can afford to pay $2,250 per month for a mortgage to buy a home. The bank will charge him…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans…

A: The interest is charged on the outstanding amount. The loan is to be paid over a specified duration…

Q: 1. Stanley borrowed $4500.00 from his credit union to do some home renovations. The loan has an…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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.