Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an annual rate of 8.25%. How much interest will he pay? What are his monthly payments?

Q: Patrick went to a bank and obtained a personal loan with an interest rate of 4.00% compounded…

A: The real interest that an investor earns on the investment and a borrower pays on the loan after…

Q: Henry Fuller has agreed to purchase a used automobile for $13,500. He wishes to limit his monthly…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: What was Patrick’s monthly payment?

A: Re-payment of loan is a combination of principal loan amount and interest amount.  Loan is paid as…

Q: Lupe made a down payment of $8000 towards the purchase of a new car. To pay the balance of the…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Jason Bradley purchased a $77,000 home at 8.5% for 30 years with a down payment of $15,000. His…

A: Escrow Account contains the amount deposited by the borrower or buyer of the asset to show the…

Q: Joshua borrowed $800 for one year and paid $40 in interest. The bank charged him a service charge of…

A: Annual Percentage Rate (APR) is the actual annual cost incurred by the borrower on the amount…

Q: Melissa Hernandez received an 8-year subsidized student loan of $24,000 at an annual interest rate…

A: Present Value of the Loan (pv) = $24,000Interest Rate (rate) = 4.1%Time Period of Interest not Paid…

Q: Bernie is looking to buy a riding lawn mower for $1320. The store offers a 3-year add-on loan using…

A: Add on loan is a type of loan where the interest is added in the principal amount and divided by…

Q: Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for…

A: Given information: House bought for $400,000 Down payment made $80,000 Interest rate is 6% Term of…

Q: Jean borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments…

A: Interest-  The monetary payment for the privilege of borrowing money is known as interest, and it is…

Q: Garret just closed a new loan on his 4-unit apartment as follows: Initial loan amount, $1,000,000,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Dagmar has a 4-year car loan at an annual interest rate of 4.5%. She has made 28 payments of…

A: Pay-off amount: The amount which satisfies all the terms of the loan and completely write-off the…

Q: While buying a new car, Thomas made a down payment of $1,000.00 and agreed to make month-end…

A: Present value of annuity is current value of the future annuity flow.

Q: Melissa Hernandez received an 8 year subsidized student loan of $26,000 at an annual interest rate…

A: The loan has been paid after completing one year of graduation, so first, compute the future value…

Q: Greg Brown borrowed $100,000 to purchase a house. He agreed to repay the loan with equal monthly…

A: Installment amount is the number of periodic payments necessary to repay a loan.…

Q: Shantel purchased a car for $22,000; she paid $2200 as a down payment and financed the balance…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent…

A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly  PMT find out using Excel:…

Q: Raia purchases a new car for $32,000 and finances it with a 6-year simple interest loan at a rate of…

A: Formula Monthly payment  = PV/[1-(1+R)-N]/R Where PV - Loan amount i.e. $32,000 R - Monthly interest…

Q: Mr Ahmad wants to borrow $30,000 for a delivery Van for his Bakery business, which is rovided by…

A: Amount to borrow is $30,000 Interest rate is 9% per year Compounded monthly Time period is 5 year To…

Q: Mr. Joe pays $2068 a month for the loan he took from a bank. If the total payment period is 3 years…

A: Mr. Joe pays monthly loan = $2068 Total payment period = 3 years Interest rate per annum = 29%…

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 6.7% and a…

A: The amount that is payoff is the amount due for remaining period of loan which is 2 years. It can be…

Q: Doris purchased a Steinway concert piano for $132,000 with a down payment of 25%, and a loan for the…

A: Cost of piano is $132,000 Down payment is 25% Equal Monthly Payment is $1,650 Interest rate…

Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…

A: It will be enough if the present value of monthly payment of $700 is equal to or more than the car…

Q: Samuel Ng received a 3-year subsidized student loan of $15,000 at an annual interest rate of 4%.…

A: Given that: Loan Amount (A)= $15000 Time(t)= 3 years Number of payments per year (n)= 12 Annual…

Q: Mary, a college student, needs to borrow $8,000 today for her tuition. She agrees to pay back the…

A: Initial amount is $8,000, Number of years is 4, Interest rate is 3.85%

Q: a) Find Kareem's monhly payment b) If Kareem pays the monthly payment for each month for the full…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and…

A: Calculation of monthly payment: Answer: Monthly payment is $995.40

Q: Bill took out a 6 year loan to buy a car. If the loan carried an annual interest rate of 6.5% and he…

A: The amount of interest paid is calculated as difference of total payments less present value of…

Q: Andy wants to buy a car that costs $22,750. The dealership will finance the car for 5 years, at…

A: Loans are the debt obligations of a company that are shown on the liabilities side. These are paid…

Q: Mason owes $6,700 on his credit card. The bank charges an annual interest rate of 12%, compounded…

A: Amount owes by Mason $6,700 Interest Rate (12% /12) 1% Period  13

Q: To purchase a car, Sarah took out a 60-month loan for $33,000 with a 7.6% annual interest rate.…

A: If a loan is repaid with regular equal payments, each payment consist principal part and interest…

Q: Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800,…

A: Calculate the monthly instalments as follows:

Q: Josean got a dining set for $ 1,279 to pay for monthly for two years. He will pay at an interest of…

A: To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT.

Q: Todd is able to pay $360 a month for 6 years to finance a car purchase.  a. If the interest rate is…

A: Per month payment=$360Number of months=6×12=72Rate per month=6% compounded monthly

Q: he annual interest rate on the loan is

A: Interest Rate: It is the rate used to compute the finance charge paid by the borrower for taking a…

Q: Samuel Ng received a 3-year subsidized student loan of $12,000 at an annual interest rate of 5%.…

A: Computation of monthly loan payments:

Q: Kelly buys a computer system for $2400 and makes a 15% down payment. If Kelly agrees to repay the…

A: Annual Percentage Rate is the internal rate of return for the loan borrowed and monthly payments…

Q: Elin purchased a used car for ​$9,500. She wrote a check for $2,000 as a down payment for the car…

A: In this question Elin purchased a car for $ 9500 and pay down payment of $ 2000 & for balance of…

Q: Yolanda borrows $70,000 to buy a BMW. The dealer charges her an APR of 5%, compounded monthly, and…

A: Borrowed amount (PV) = $70,000 Interest rate = 5% Monthly interest rate (i) = 5%/12 =…

Q: Mayesha purchased a large screen TV for $4,000 and can pay it off in ten months with an add-on…

A: The add-on method is used to calculate the monthly payments that are the finance charges for the…

Q: Ria buys a two-year-old Honda from a car dealer for P450,000. She puts P150,000 down and finances…

A: Equated monthly installments(EMI) is the equally divided monthly installments that outgoes to clear…

Q: Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 5.7% and a…

A: Data given: N=5 year Interest rate = 5.7% PMT= $595.50 After 3 years, Angela decides to purchase a…

Q: Jason received a 10-year non-subsidized loan of $40,000 at an annual interest rate of 6%. What are…

A: Loan amount refers to the amount that is borrowed by the borrower for fixed time period at fixed…

Q: Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance…

A: interest is difference between payment paid and loan amount.

Q: A bank has offered him a 10-year small business loan at an annual interest rate of 11.3%. Find the…

A: Amortizing loan means the payment of principal amount of loan depends on the amortization…

Q: Jamal bought a car and is making month-end payments of $510.35 for the next 4 years to pay it off.…

A: given, month end payment, Mode = END N= 4 X12 = 48 years IY = 2.99% CY= 2 (since interest is…

Q: teven has just purchased a new car fleet for his business and is considering taking out a 3-year…

A: Note: This question contains two distinct questions. The first has been answered below.

Q: To rent an apartment, Nick has to pay the first month of rent plus the last month of rent and a…

A: Under the cash advancement on the credit card system, the borrower is able to borrow money and has…

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.