Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to the next highest day when necessary. Principal Rate (%) Time Interest $7,400 10.4  days $222

Q: Find the amount (in $) of interest on the loan. Principal $90,000 Rate (%) m/+ Time 9 months LA…

A: Step 1 The amount a lender charges a borrower is called an interest rate, and it is expressed as a…

Q: 10) Compute the simple interest and final amount of each loan Principal Rate Time A P 400 7% 1 year…

A: Simple interest is that amount of interest which is being charged on the principal amount for the…

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Principal Amount = p = $7310 Interest rate = r = 7% Time = 13 days

Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400 what is the…

A: Interest is calculated on the principal amount borrowed by the business.  In the given case if…

Q: You have taken a personal loan from Bank Muscat for 15,000 OMR and charged with an interest rate of…

A: Loan Amortization Table  is as under -

Q: simple interest The interest on a loan of P 2,500 is P 165.00 .  If the rate of interest is 6 %,…

A: The time on the loan can be calculated with the help of simple interest equation

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: Find the ordinary interest using: a) Ordinary time b) Exact time c) Find the Exact Interest using…

A: The amount paid to an investor for the invested fund is called interest. It is the compensation paid…

Q: A design studio purchase a camera. If they settled the loan in 2 years by making quarterly payments,…

A: Loans are to paid by the periodic payments that carry the payment for loans and payment for interest…

Q: The following loan is paid in full before the date of maturity. Find the amount of uneaned interest.…

A: There are various method which can be used to compute the interest charged on a loan. Rule 78 is one…

Q: Number of Payments Payments Remaining Payments Made 18 3 Sum-of-the- Digits Payments Remaining…

A: When a buyer buys goods on credit, he has to pay the remaining installments after paying the down…

Q: What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: Use the add-on method of calculating interest to find the total interest and the monthly payment.…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: What is the effective annual interest rate on the loan? Car purchased for $29,000 with a 5 year loan…

A: Compound = n = Monthly = 12Interest Rate = r = 9%

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

A: Given, Monthly payment is $1773.60 Annual tax is $6,513 Annual insurance is $2,186

Q: Find the principal of a loan in which the interest rate is 13% per month, payable monthly, and in…

A: The principal of a loan is the initial amount of money that is borrowed or lent. It is the original…

Q: How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?…

A: A term deposit refers to an investment that is offered for a set time where a periodic sum has to be…

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Data given: Principal = $7290 Rate=7% Time=17 days     Formula to be used: Interest = Principal *…

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

A: Here, Amount Financed = $240,000 Interest rate = 7.50% Term of loan = 25 years Annual Property tax =…

Q: Find the amount (in $) of interest on the loan.

A: Interest: It refers to the monetary charge paid by the borrower to the lender for taking a loan. It…

Q: se the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Interest = Principal * rate * time where, Principal = $186,500 Rate = 5.75% time = 51 days

Q: Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below. Purchase…

A: The question is based on the concept of Financial Management.

Q: You are told that a note has repayment terms of $900 per quarter for 6 years, with a stated interest…

A: The principal value of a loan is the amount that is the basis for the interest computation whether…

Q: n in an amortization table (in dollers) for a loan of $8,500 to be paid back over 2 years, at an…

A: Outstanding balance is the amount of loan remaining after payment of principal amount.

Q: Find the APR (true annual interest rate), to the nearest half percent, for the following loan.…

A: The Annual Percentage Rate (APR) represents the yearly cost of borrowing money through loans or…

Q: Calculate the amount of interest to be paid on a $50,000 loan over the next 28 months if money earns…

A: simple interest formula: I =P×R×T100where,P = PRINCIPALR = RATE OF INTERESTT = TIME IN YEARS

Q: Determine the monthly payment for the installment loan. Use the installment payment formula m = 1-…

A: Given , Amount of financed , P = $1440Annual percentage rate , r = 8%No.of payments per year , n =…

Q: Find the finance charge on the following open-end charge using the unpaid balance method of…

A: The finance charge is the cost of borrowing any sum of money. It could be borrowed for short as well…

Q: Use the exact interest method (365 days) and the ordinary interest method (260 days) to compare the…

A: Any sum of money an investor puts into the various alternatives available in the market is an…

Q: Use the amortization table to determine how much interest is paid in the first 4 months of the loan.…

A: whenever the lender makes the loan advance to the borrower, then he levies interest on the principal…

Q: What is the maturity date of a loan for $3,000 at 15% exact interest taken out on June 47 The amount…

A: Loans are taken to meet financial needs. The borrower pays the interest on the loan to the lender.…

Q: 2. Find the amount (in $) of interest on the loan

A: Interest: It is the monetary charge paid to the lender by the borrower for taking a loan. Interest…

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.