You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of $12,000. You will receive the first paym one year from now. What rate of return does your loan earn? 14.86% 12.50% 11.53% 6.00%

Q: What would the monthly payment be? It is a zero amortizing loan

A: Given  Pv=300000*75%=225000 i=6%/12=0.5% n=30*12=360 Pv=pmt*(1-(1+i)^-n)/i

Q: You borrow $275,000; the annual loan payments are $36,687.93 for 30 years. What interest rate are…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: You take out a 10-year installment loan for $220,000 and will make 40 quarterly payments of…

A: Amortization Table A document that details the monthly loan payment amount is known as an…

Q: Suppose you lend ​$11,500 to a friend at an APR of 10.00​%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

Q: You got a loan today of $10,000 for 3 years, annual interest rate is 6%. The annual payment is…

A: Annual Payment of Loan: It is the periodic payment of a loan including interest for a pre-defined…

Q: You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the…

A: The objective of the question is to calculate the amount of interest paid in the second year of an…

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…

Q: rescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What…

A: The value of money changes with time. Therefore, the time value of money considers the worth of…

Q: A car loan is taken for $20,000 to be paid back in 6 years, with monthly payments of $304. What…

A: We need to use RATE function in excel to calculate annual rate to be charged on loan. The formula is…

Q: You owe $31,000 on student loans at an interest rate of 5.85% compounded monthly. You want to pay…

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Q: You borrow $110,000; the annual loan payments are $16,753.02 for 30 years. What interest rate are…

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Q: ou borrow $210,000; the annual loan payments are $18,653.76 for 30 years. What interest rate are you…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: Your insurance agent is trying to sell you an annuity that costs $80,000 today. By buying this…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

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Q: Your uncle lends you $2,000 less $100 (interest at 5 percent), and you receive $1,900. Use the APR…

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Q: Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10…

A:

Q: A house price of $100,000 can be financed with two loans below with monthly payments. The total…

A: 1. Two-Loan Option: - $80,000 first loan at 5% for 30 years.   - Second loan: $10,000 for 30 years…

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Q: Find the interest rates earned on each of the following. Round your answers to the nearest whole…

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A: Future Value of Loan = Amount of Loan + interest on Loan

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A: Hi student Since there are multiple subparts, we will answer only first three subparts.  Time value…

Q: You're borrowing $6,000 for 4 Years with a stated simple interest annual interest rate of 8.5%. How…

A: Borrowings = p = $6,000Term = n = 4 yearsRate of interest = r = 8.5%

Q: Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a…

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Q: Toyota S murang auto finance company is prepared to offer you a loan of $38,000 to buy a new Toyota…

A: Loan amount (L) = $38000 n = 7 years r = 12% Let A = Annual repayment

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Q: A borrower takes out a 30-year mortgage loan for $150,000 with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

Q: You borrow $280,000; the annual loan payments are $24,871.68 for 30 years. What interest rate are…

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A: Here,LoanAmount is $35000Number of Annual Payments is 30Annual Payment is $4,998.10

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Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a.…

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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.