What is the rate of interest on a loan of $2,000, for 282 days, if the amount of interest is $139.07, using the exact interest method? (Round your answer to the nearest tenth percent.) O 7.0% 8.9% O 9.0% 14.2%

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: Find the amount (in $) of interest and the maturity value of the loans. Use the formula  MV = P + I…

A: Interest expense is a rate at which interest is calculated on the notes payable (amount borrowed).…

Q: What rate of interest did you earn for a period of 2417 days if you invested $175 and you earned…

A: The correct answer is: (D) 19.16%  To calculate the rate of interest, you can use the formula Rate =…

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: 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: The interest amount on a $46,500 loan was $24,785.95. The interest rate charged on loan was 9.20%…

A: Future value of a loan refers to the total amount that will be due at the end of the loan term,…

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: You have taken a loan of $244,000. You can afford to pay monthly payments of $1921.13. This loan…

A: Mortgage payments are the monthly payments of the long-term loan taken from the lender. The borrowed…

Q: A lender wished to earn an annual simple interest rate of 14%. What annual simple discount rate…

A: Banks frequently subtract basic interest from loan amounts at the moment the loan is originated.…

Q: The maturity value of a 4-month loan of $4,250 is $4,367.50. What is the annual simple interest rate…

A: The maturity value is $4367.50. The principal amount is . The time is  months. The objective is to…

Q: Original Terms of Loan:  30 year loan of $127,800 at an interest rate of 6 ½ %. What is the monthly…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: Based on Exhibit 9-9, or using a financial calculator, what would be the monthly mortgage payments…

A: Amortization refers to the process of gradually paying off a debt, typically a loan, through regular…

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 principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Future value (FV) is the value of a current asset based on an estimated rate of increase at a future…

Q: What is the monthly payment on a $160,000, 30-year mortgage at 6% with a $40,000 balloon payment? O…

A: A mortgage refers to a loan that is borrowed for purchasing or maintaining a property. The loan is…

Q: You apply for a loan of $151,000 with the following terms: A 7-year loan with semi-annual payments…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

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: klp.1

A: The objective of the question is to find the nominal interest rate charged on a loan that was…

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: W WA Finance 2-Borrowing Money and Pa Assume that you take out a $4000 loan for 30 months at 8.5%…

A: Given,  The loan amount is $4000 Rate is 8.5% Term is 30 months

Q: 3. Find the amount (in $) of interest and the maturity value of the loans. Use the formula  MV = P…

A: Solution:- When an amount is invested somewhere, it earns interest and the amount receivable at…

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: FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual…

A: Time period is 30 years Loan amount is 800,000 Points =2 To Find: Annual percentage rate

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

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.