While buying a new car, a down payment of $1,20 agreed to make month-e of $300.00 for the next 4 months. If she was charg rate of 3.00% compound for the entire form

Q: A couple borrows $180,000 at 5.4%, compounded monthly, ofr 30 years. After making 80 payments of…

A: Given information: Amount borrowed $180,000 Interest rate 5.4% compounded monthly Number of years 30…

Q: Karen obtained a $20,000 loan at 4% compounded semiannually. a-1. What monthly payment will repay…

A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Q: Kevin purchased a car using a 3-year car lease at 7.90% compounded quarterly that required him to…

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

Q: ce. She financed the remaining balance for 9 months at an annual interest rate of 5.5% compounded…

A: Answer : Annual interest rate = 5.5% Effective annual interest rate = ((1+5.5%/12)^12-1) Effective…

Q: Bryan received a loan of $42,000 from the bank at 3.25% compounded monthly. If she had to repay $350…

A: Given that: Interest rate r = 3.25% per year = 0.2708% per month Period n =3 year= 36 months…

Q: Jie purchased a computer priced at $1316.21, financing it by paying $60.16 on the date of purchase,…

A: A loan refers to a contract between a lender and a borrower where money is forwarded by the lender…

Q: arles secured a 5-year car lease at 6.50% compounded annually that required her to make payments of…

A: Cars are purchased by the monthly payments and this makes easy for the customers to buy the car and…

Q: Calculate the cost of the

A: Present Value represents the value of a future amount in today's dollars, taking into account…

Q: Miguel purchased a hot tub costing $5,010 by taking out an installment loan. He made a down payment…

A: The Annual percentage rate(APR) is the percentage rate that shows the interest rate calculates on…

Q: Angelica Riordan received a four year non-subsidized student loan of $15,000 at an annual interest…

A: Equated monthly payments It is a monthly fixed payment given by the borrower to the lender on the…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance

A:

Q: Chiara purchased a new natural gas barbecue for $2,300 and made a down payment that was 30% of the…

A: Purchase price = $2300 Down payment = 30% of Purchase price = 0.30×$2300 = $690 Loan amount =…

Q: Abigail received a loan of $41,000 from the bank at 5.75% compounded monthly. If she had to repay…

A: Using Excel

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Amount of loan = Purchase cost - Down payment = $5,030 - $1300 = $3730

Q: A couple who borrow $60,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…

A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later…

Q: Vanessa purchased a car using a 5-year car lease at 6.30% compounded quarterly that required her to…

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

Q: Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment…

A: The formula for the calculation of APR is as follows: APR=Fees+InterestPrincipalTime period×12

Q: Miguel purchased a hot tub costing $5,030 by taking out an installment loan. He made a down payment…

A: Loans are paid back in fixed periodic payments.   The amount of the periodic payments depends on the…

Q: Chiara purchased a new natural qas barbecue for $2,200 and made a down payment that was 30% of the…

A: Annual interest rate = 5.5%   Effective annual interest rate = ((1+5.5%/12)^12-1)   Effective annual…

Q: Calculate the total deferred payment price.

A: Total Deferred Payment Price: It refers to the total amount paid on the loan borrowed by the…

Q: final answer to 2 decimal places.)

A: for 8 years and 1/2 years= 8*2+1= 17 times. annual interest rate = 4.6%, so semiannual = 4.6/2=…

Q: Casey secured a 5-year car loan at 6.20% compounded annually that required him to make payments of…

A: Present Value represents the value of a future amount in today's dollars, taking into account…

Q: uston purchased a wall unit for $2,200. He made a $600 down payment and financed the balance with an…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized…

A: Here, Value of Car is $16,447.22 Down Payment is 10% Interest Rate is 11.5% Time Period is 4 years

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.