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: a. If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully?…

A: By rearranging a PV of ordinary annuity formula we can determine the time taken.  PV = PMT…

Q: Pedro bought a late-model car on credit that he will have to pay as follows: $ 105,400 down…

A: Down Payment = $105,400 Payment Per month = $14.284.62 Interest Rate = 1% per month Time Period = 3…

Q: 6.4 Purchase a Home 1. Tammy and JD are buying a $465,000 home. They have been approved for a 6.25%…

A: Home value = $465,000Mortgage period = 30 yearsDown payment = 30% = 465000 * 0.3 = $139,500Loan…

Q: please answer in detail with all work thanks no copy paste    Tammy realizes that she has charged…

A: Introduction: APR The cost of taking loans annually, including fees, is stated as a percentage and…

Q: What is Vic's monthly interest payment?

A: Interest payment is the payment of amount which has been charged by the lender of the money on the…

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: 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: 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: Mrs. Martha bought a screen that has a cash price of $ 18,000. She made the purchase on credit,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Ms. Lanz takes out a $9,000 loan to buy a used car for her daughter. She gets a 4-year loan at 8.75%…

A: We can calculate the total repayment of the loan by adding the interest amount and principal amount…

Q: Jennifer Kaufman bought a used Toyota Prius for $16,500. She made a $3,500 down payment and is…

A: Monthly Installment  = Loan AmountPVAIF (Interest rate , Number of months

Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…

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: Bill and Kim Johnson are purchasing a house for $263,000. Their bank requires them to pay a 20% down…

A: A mortgage refers to a loan used to buy or maintain and repair a building, land, or other real…

Q: Patrick Cantlay just purchased a home for $500,000. His mortgage is a 30-year mortgage, that…

A: Mortgage loans are secured loans in which a home is collateral and are paid in equal monthly…

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: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…

A: Investment is the practice of exchanging current revenue for an asset that is expected to provide…

Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

A: Mortgage loans are given on the basis of monthly income and other expenses related to the housing…

Q: Question a Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and…

A: Payment is the exchange of money, products, or services for agreed-upon amounts of acceptable goods…

Q: Your cousin is currently 9 years old. She will be going to college in 9 years. Your aunt and uncle…

A: STEP 1 Present Value Given a certain rate of return, present value (PV) is the current value of a…

Q: A person needs $18,000 immediately as a down payment on a new home. Suppose that she can borrow this…

A: Continuously compounded interest rate:The concept of continuously compounded interest rate refers to…

Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…

A: The amount of interest paid is calculated as difference of total payments less present value of…

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:…

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A: Here, Monthly Payment is $251.22 Interest Rate is 23.77% Compounding Period is Daily i.e 365…

Q: You are a financial adviser working with a client who wants to retire in eight years. The client has…

A: Present Value is a capital budgeting technique which helps in decision making on the basis of future…

Q: Sandra borrows $25, 000 from her parents to help pay college expenses. She agrees to repay the loan…

A: Given: Loan amount “PV” = $25000 Interest rate “r” = 3%/12 (compounded convertible) End of month…

Q: Joe-Bob wants to buy a car and will need to take out a loan in order to make the purchase. His…

A:

Q: This equation is used to find the monthly payment, m, given the monthly interest rate, i, the…

A: Mortgage loans make the house buying very easy and the mortgages are paid by the monthly payments…

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.