To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to make three payments in two, five and ten months' time respectively The second payment is to be double the first and the third payment is to be triple the first. What is the size of the payment at month five if interest is caleulated at 16% per year, compounded monthly? R4 627,26 12 R3 164,86 13 R3 000,00 14 RI 582,43

Q: We sign a contract that calls for a downpayment of €3, 000 and for payments of €250 at the end of…

A: Down payment = €3, 000 Monthly payment = €250 Interest rate = 12%Number of years = 6 years

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A: Loan amount=$2130Annual payment=$179Interest rate=7%Compounding quarterly.

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: The objective of the question is to find out the time period Zack will take to repay his loan by…

Q: Engr. Odon is paying a loan five thousand pesos 5% monthly for 3 years. If the payment is to start…

A: future value formula: future value =present value ×1+rn where r=rate of interest n=number of years…

Q: 3. Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4…

A: Loan amount (PV) = P300,000 Number of monthly payments (n) = 4 Interest rate = 12% Monthly interest…

Q: Mike invested $4040 for 3 years and earned $410. What interest rate was this invested at?

A: Investments are the processes in which individuals and investors make investments or save their…

Q: For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if…

A: A loan is a contract between two parties where an amount is forwarded on the promise of repayment…

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: Loan amount = $3,460.00Semi-annual payment = $114.00Interest rate = 4%

Q: You have a mortgage for $95,000 at 6.50% for 30 years, monthly payments. The loan has a five percent…

A: An amortized loan is subjected to a prepayment penalty if repaid within a stipulated timeline. The…

Q: Jack borrows $7,000.00 at an interest rate of 15% compounded monthly to be paid off monthly payment…

A: Answer Correct option $6,467.70

Q: A. Payback. The company requires all projects to payback within 3 years. Calculate the payback…

A: Payback period = Year of last negative cash flow + (Absolute value of last negative cash flow/Next…

Q: Hudson agreed to borrow R4 954, 85 at 9% compound interest per month when he signed the loan papers…

A: Loan amortization is the systematic repayment of loan amount spread over tenure of loan period.…

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A: For purpose of calculation and evaluation of both the options, we need to compare the vash flows on…

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A: The amortization schedule refers to the breakdown of payments of a loan. It is used by borrowers to…

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: To pay off a loan of R7 000 due now and a loan of R 2 000 due in 14 months' time, Mrs Skosana agrees…

A: ### Given:- Loan 1: R7,000 due now.- Loan 2: R2,000 due in 14 months.- Interest rate: 16% per year,…

Q: Mr Lim must pay RM 250 every month for 24 months to settle a loan at 10% compounded monthly. Find…

A: Monthly payment (P) = RM 250 Number of monthly payments (n) = 24 Interest rate = 10% Monthly…

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.