A loan of $ 7000 is to be repaid in 46 equal monthly installments with the first one paid seven months after the loan is made. The nominal annual interest rate is 8 % compounded quarterly. Determine the amount of the monthly payment

Q: Find the effective interest rate for a $1,500 loan for four years compounded semiannually at an…

A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. What…

A: "Hi, Thanks for the Question, Since you asked multiple sub parts, we will answer first three sub…

Q: A loan of $381,000 at 2.72% compounded quarterly was to be settled with month-end payments of…

A: Total amount, A = P(1+(R/100*4))4*3.629

Q: A loan of $14,800 is to be amortized with quarterly payments over 7 years. If the interest on the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Determine the principal remaining after 36 monthly payments have been made for a 5-year loan of…

A: Loan (L) = P 40000 n = 5 years = 60 months Interest rate = 8% quarterly compounded Let r = Monthly…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Hence, payment made for year 1 is $3,000, year 2 is $2,400, year 3 is $1,920, year 4 is $1,536 and…

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If…

A: FV of annuity = P * [(1+r)^n-1] / r Where, P = amount of each deposit r = rate of interest per…

Q: A $10,000 loan is scheduled to be repaid in equal monthly installments at the end of each month for…

A: Principal Amount = $10,000 Interest Amount = $2,600 Time Period = 36 months

Q: An item can be purchased for 4,500 or for 1,500 down payment and installment payment of 115 every…

A: Loan amount (L) = Purchase price - Down payment = 4500 - 1500 = 3000 Installment payment (A) = 115…

Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…

A: Given, Amount borrowed = $28000 Interest Rate = 12% No. of years = 4

Q: A loan of P47,300 is to be amortized by equal payments each month for 6 months . If interest is 12%…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the…

A: Loan = 245,000 Time Period (N) = 6 years i.e. 24 quarters Number of compounding periods = 4 Interest…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years,…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: $20,000 loan is being repaid by installments of $400 at the end of each month for as long as…

A: Amortization schedule is a table in which period payment or installment paid and the amount of loan…

Q: A sum of $80,000 is to be repaid over a 10-year period through equal installments made at the end of…

A: Interest, in finance and economics, is payment from a borrower or deposit-taking financial…

Q: Two debt payments, the first for $800 due today and the second for $600 due in nine months with…

A: In order to calculate the final payment, we will make use of focal date.

Q: To borrow $600, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Given: Borrowed amount =$600Annual interest =9%   Amount to be paid =Principal + Interest=$600 +…

Q: Prepare an amortization schedule for a three-year loan of $108,000. The interest rate is 9 percent…

A: In this we have to present value FACTOR and find annual equal payment.

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: If the interest rate is 7.5% per year and the principal is 2,500, determine the amount of interest…

A: Interest= 2500 * 7.5% * (20/12) = 312.50 20/12 is done as the interest is for 12 months and we need…

Q: Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a…

A:

Q: The company sells products to a customer for $60,000 and will receive $15,000 at the end of the…

A: Time value of money is the concept that states that the value of money have more worth than the same…

Q: A $10,000 loan is scheduled to be repaid in equal monthly installments at the end of each month for…

A: To Find: Additional Interest paid

Q: A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If…

A: Present value is the current value of the amount of money or cash flows that are expected in the…

Q: pan of $30,000 is to be financed over a period of 24 months. The agency quotes a nominal interest…

A: in this we have to find equivalent effective interest rate and use as annual interest rate.

Q: Forty monthly payments of $200 apiece are needed to repay a loan for which interest charges are 12%…

A: Monthly Payment of $200 Interest rate is 12% Compounded monthly Time period is 40months   To Find:…

Q: The following information is given for a 60-month loan from a bank: Debt repayments are made at the…

A: Given information: Term of loan : 60 months First installment : 300 TL Interest rate : 12.682503%…

Q: A loan of $10,000 is repaid by 20 level installments at the end of every 6 months. The nominal rate…

A: Loan refers to the amount borrowed which creates liability for fund receiver and level installments…

Q: A $25,000 loan has a yearly 3.2% interest applied to it monthly. The loan is being paid off with…

A: Monthly payment refers to the periodic payment extended by the borrower against loan repayment. The…

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. (…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: A $24,100 loan is to be settled by making payments of $6,980 at the end of every 3 months. The…

A:

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: Calculate the annual end‐of‐year loan payment.

A: Loan refers to the net amount of borrowings that a borrower needs from the lender in order to fund…

Q: A six-month loan of 20,000 at a nominal rate of 12% convertible monthly will be repaid with six…

A: Loan monthly payments are given by, Loan amount = PV of all payments  PV = C/(1+r)n Where, C =…

Q: A student loan of R6978 is to be repaid by 18 equal monthly instalments. Assuming that instalments…

A: Loan amount (PV) = R6978 Interest rate = 18% Monthly interest rate (r) = 18%/12 = 1.50% Number of…

Q: Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly, Find…

A: Monthly payment (M) = P 800 Number of payments (n) = 8  r = 8% per annum = 0.667% per month

Q: A loan of R40 000 is granted at an interest rate of 18% pa compounded monthly. In order to amortize…

A: A loan amortization schedule is a schedule with the bifurcation of interest paid per installment,…

Q: Debts of $1,800 and $3,750 are due in one year and eighteen months from now, respectively.…

A: Amount due in 18 months is $3750 Amount due in one year is $1800 Replancement payment in 9 months is…

Q: A loan of $7000.00 is repaid by payments of $450 at the end of every three months. Interest is 6%…

A: Using excel NPER function

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: A loan of $18,000 is to be financed over a period of 24 wmonths. The agency quotes a nominal…

A: Given:Loan amount=$18000Financed time period=24 monthsNominal interest rate =8% for first 12…

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.