You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $   EAR:   %

Q: You would like to buy a new car and will need to borrow $25,000 to do so. Your loan will be repaid…

A: EMI or monthly payment of loans is the payment which the borrower makes every month towards loan…

Q: Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose that you decide to borrow 16000 for a new car. You can select one of the following loans…

A: Loan A has a term of 3 years with 6.3% interest.The formula to calculate monthly payment is given…

Q: You can afford a $250 per month car payment. You've found a 3 year loan at 3.6% annual interest…

A: We know that to calculate the EMI we can use the formula as below, Equated Monthly Installment =…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

A: A loan is an agreement where an amount is forwarded in exchange for periodic payments that cover the…

Q: Use the monthly payment formula to answer the question. Round your answer to two decimal places, if…

A: Purchase Price = $648,000Down Payment rate = 10%Compound = monthly = 12Interest rate = r = 7.92 / 12…

Q: You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year…

A: Given:

Q: Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly…

A: The objective of this question is to calculate the total amount paid over 11 years to clear a credit…

Q: You want to buy a new sports coupe for $75,200, and the finance office at the dealership has quoted…

A: Compound = n = Monthly = 12Present Value = pv = $75,200Rate of return = r = 7.6 / 12 %Time = t = 48…

Q: ou borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23…

A: Loans are paid in equal monthly installments and these carry the payment for interest and payment…

Q: You have approached your bank for a 30 year mortage loan in the sum of $2,160,000. The bank has…

A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…

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: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount = $26,100 Monthly payments = $989 Total finance charges = $9504 Loan period = 36 months…

Q: You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are…

A: Borrowings are the loans taken from banks or non-banking financial institutions, to meet its…

Q: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…

A: A loan is an agreement between two parties where an amount is forwarded in exchange for a promise of…

Q: You plan to purchase a $350,000 house using a 15-year mortgage obtained from your bank. The mortgage…

A: Here, Purchase Price $ 350,000.00Time Period in years15Interest Rate5.50%% of Down Payment20%

Q: You are buying a new home, and you have negotiated a 15-year mortgage loan with a local bank for an…

A: Annuity refers to the equal amount of payment made. In this case the monthly payments for loan…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: You are borrowing $100,000 to purchase a house. The interest rate is 3.5% over 15 years, with…

A: Solution 1 = Monthly Payment Formula =  PMT(rate, period,-borrowing) Monthly Payment $714.883…

Q: A woman wants to borrow $10,742 in order to buy a car. She wants to repay the loan by monthly…

A: Formula EMI = PV/[1-(1+R)-N]/R Where EMI - Equal monthly instalment  PV - Loan amount i.e. $10,742 R…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Solve the following problems. Round your results to the nearest cent as needed. You need a loan to…

A: P = $24,200 (loan amount),(monthly interest rate),n=6×12 (number of months in 6 years).

Q: Suppose that you decide to buy a car for $27,635, including taxes and license fees. You saved $8000…

A: Autoloans are now common because they are paid in equal monthly installments and these monthly…

Q: To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are…

A: Annual percentage rate refers to the interest rate paid by the borrower to the lender on a yearly…

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

Q: You have two monthly car payments of $400 each left on your car. If the interest rate is 0.75…

A: Monthly Payment (PMT) = $400Monthly interest rate (r) = 0.75% or 0.0075Number of periods (n) = 2…

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: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: An effective annual rate (EAR) is the actual rate of interest to be paid annually after taking…

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: You are looking to buy a car and you have been offered a loan with an APR of 6.2%, compounded…

A: APR = 6.2% monthly compounded

Q: You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized…

A: Loan is an obligation repayable in the future. The loan is used as a means of finance. Most of the…

Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each.  What is the interest rate?

A: Annual payments are made for payment of loan which carry the interest and payment of principal…

Q: A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5%…

A: Fixed monthly payment =P× r ×(1+r)n(1+r)n-1 Where : P = Loan amount r = monthly rate of interest n =…

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

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

Q: You want to buy a house, and a local bank will lend you $100,000. The loan will be fully amortized…

A: EAR: EAR stands for Effective Annual Rate, and it is the interest rate. Compounding periods are…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

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

Q: A customer of your bank comes for a car loan 10000 OMR. He is charged with an interest rate of 5%…

A: Given Information : Amount of loan : 10,000 OMR Interest rate : 5% annual Tenure : 12 months

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.