To pay for a  $22,300  truck, Jina made a down payment of  $4900  and took out a loan for the rest. On the loan, she paid monthly payments of  $312.67  for  5  years. (a) What was the total amount Jina ended up paying for the truck (including the down payment and monthly payments)?   $ (b) How much interest did Jina pay on the loan?

Q: Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and…

A: Cost of house = $ 120,000 Down payment = $ 35,000 Loan amount (PV) = 120,000-35,000 = $ 85,000…

Q: Michelle borrows a total of $2500 in student loans from two lenders. One charges 3.2% simple…

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: Sara borrowed a total of $10,000 as loans from her aunt Talia and after six years paid a total of…

A: Loan amount = $10,000 Payment in 6 years = $10,000 Payment in 8 years = $2,000     We will sue IRR…

Q: find her loan payoff amount.

A: Amount financed = $27,500 Number of instalments = 36Monthly payment = $998.61Payment made = 21Total…

Q: ds to borrow $5000 to pay for NHL season tickets for her family. She can borrow from the credit…

A: The annual percentage rate (APR) is the total cost of a loan to a borrower, including fees which is…

Q: Heather took out a loan for 7 months and was charged simple interest at an annual rate of 7.2%. The…

A: To calculate the loan amount we will use the below formula   Loan amount = I/(r*t) Where I -…

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: Reena took a loan of 1200 with simple interest for as many years as the rate of interest. If she…

A: Loan amount= 1200 Interest amount= 432 Rate of interest=?

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: What was Patrick’s monthly payment?

A: Re-payment of loan is a combination of principal loan amount and interest amount.  Loan is paid as…

Q: Sara made 10 payments of $108.50 to the credit union. The original loan amount was $1000. After she…

A: Payments made = $108.50 for 10 times Original Loan = $1000 Interest Amount = Total Payment made -…

Q: Maya borrowed $700 from a lender that charged simple interest at an annual rate of  6%. When Maya…

A: A loan is a borrowing that an individual or entity takes into account. A lender is the other side in…

Q: paying $111 at the end of each month for 6 years. The bank charges interest on the loan at 7.71 %…

A: Monthly payment=$111Number of payment=72Interest rate=7.71%Monthly interest rate=0.6425

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

A: Here,Purchase Price of Car is $15,000Down Payment is $2,000Therefore, Loan Amount (PV) is:Interest…

Q: Interest Earned. On June​ 1, Mia deposited ​$5,500 in an MMDA that pays 3​% interest. On October​…

A: Solution- Amount interest earned by Mia=$5500*3%*7/12+$1400*2.99%*2/12…

Q: To help pay for college, Christine borrowed money from an online lending company. She took out a…

A: Amortized Loan (PV)  $57,000.00 Interest Rate (Rate) 5.65% Time Period (Years) 10

Q: Carie purchased a car for $49,000; she paid $4900 as a down payment and financed the balance amount…

A: Present Value= the financed amount after the down payment= 49000-4900= 44100Payment per period can…

Q: Anna does not use her credit card for anything else and she pays off the $100 cash advance plus in…

A: Particulars Values Total Cash in advance  $100.00  Interest rate(APR) 18.000% Monthly Payment…

Q: Joe Levi bought a home in Arlington, Texas, for $148,000. He put down 30% and obtained a mortgage…

A: Mortgage:A mortgage is a legal agreement in which a person borrows money from a bank or a financial…

Q: Salma borrowed $600from a bank for 2 years and was charged simple interest. The total interest that…

A: The annual interest rate on the loan is calculated using the simple interest formula given as below:…

Q: Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded…

A: i) Monthly Payment: Solved using Financial Calculator  PV = - 85,000 I/Y = 3.7/12 = 0.3083333333 N =…

Q: Amber received a 15 year loan of $245,000 to purchase a house. The interest rate on the loan was…

A: Answer information:Step 1:a. Monthly Loan PaymentWe can find the monthly payment using the loan…

Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…

A: Here, Value of Car is $43,000 Down Payment is $2,150 Therefore, Loan Amount is : =$43,000-$2,150…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750,…

A: Given Loan amount = $12000 Loan repayment = $18750

Q: While buying a new car, Austin made a down payment of $1,000.00 and agreed to make month-end…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Kelsey's parents wère unable to pay for her last year of college, so she obtained a student loan of…

A: Loan: It represents the amount borrowed from the lender by the borrower in exchange for repayment…

Q: 3.) Hamlet paid back $280 monthly installments to the bank for a loan. He earned 10.5% APR and had…

A: The problem is solved using actuarial method. Monthly instalment “R” = $280 APR = 10.5% Number of…

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.