Ali makes the same payment every two months to pay off his $61,600 loan. The loan has an interest rate of 9.84%, compounded every two months. If Ali pays off his loan after exactly eleven years, how much interest will he have paid in total? Round all dollar values to the nearest cent. O $3,136.29 $39,695.48 $39.294.26 O $39,467.12

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A: Formula Future value = PV*(1+(i/c))n*c Where PV = Present value i.e. RM1,000 i = Interest rate i.e.…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

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A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…

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A: In order to calculate the amount at the end of a specific period of time, the future value of the…

Q: Mark has a credit card balance of $25,000. The annual est rate is 17%. He is required to pay a…

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Q: John took a personal loan of $100,000 from the bank at a nominal interest rate of 6% per year…

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Q: You overhear your friend saying that he is repaying a loan at P5,000 every month for the next three…

A: Using excel PV function

Q: Peter has $10,000 that he can deposit in any three savings accounts for a 3- year period. Bank A…

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Q: Taylor will make payments of $150 at the end of every month to settle a loan of $1,300 at 5.10%…

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Q: 2) Ahmet bought a new house for 1 100 000 TL and financed 70 percent of the purchase price with a…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…

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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: The future value of goes on increasing as there is more compounding over the period of time.

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A:

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

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Q: Approximately how long will he take to pay off the loan under these​ conditions?

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A:

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Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and…

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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.