Answered: AUTO LOAN Kiara recieved a $10,000…

AUTO LOAN Kiara recieved a $10,000 loan from her Aunt to buy a car. Her Aunt charged her 2.5% interest. How long was the term of the loan if the interest accrued was $125?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 30P

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Concept explainers

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.

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AUTO LOAN

Kiara recieved a $10,000 loan from her Aunt to buy a car. Her Aunt charged her 2.5% interest. How long was the term of the loan if the interest accrued was $125?

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