Calculating the APR on simple interest and discount loans.  Find the finance charges on a 6.5 percent, 18-month, single-payment loan when interest is computed using the simple interest method. Find the finance charges on the same loan when interest is computed using the discount method. Determine the APR in each case. Assume a loan ammount of $1000

Q: Define each of the following loan terms, and explain how they are related to one another: the prime…

A: A loan is in the form of money given to another party who needs funds in exchange for repayment of…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Using excel PMT function

Q: Please calculate: What is the PER, APR and the EAR for a $15,000, 9 month (short term), where the…

A: Given; PER equals the number of Periods = 9 Months APR (Annual Percentage Rate) equals stated…

Q: A finance company uses the discount method of calculating interestThe loan principal is $4,500, the…

A: Discount method is one of the methods to provide a loan. Under this amount loan amount is provided…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Given: PV =1000Monthly rate =APR12=7.25%12=0.00604166667Total months in 15 years (n)=15×12=180

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Amount Financed = $ 162,300 Interest rate(r) = 7.25% per annum = 7.25%/12 = 0.60416667 % Terms =…

Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…

A: Interest is the amount charged by bank in consideration of advancing loan to its borrowers. It is…

Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…

A: Data Given, Loan Amount (Principle) = $150000 Time period of loan (n)= 20 years Payment Interval =…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Amount Financed = $18400 Monthly payment = $424.08

Q: You are given a loan on which interest is charged over a 4-year period, as follows: i. an effective…

A: Let the annual effective interest rate = r 1st year discount rate = 6% 2nd year discount rate = 4%…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Amount Financed =$6,600 Number of Payments(n) = 36 APR = 11% r = 11%/12 = 0.9167%  Monthly Payment =…

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Finance Charge is the total interest paid during the time period of the project. Finance charge is…

Q: You are considering two loans. The terms of the two loans are equivalent with the exception of the…

A: Assume Loan amount  (Present value)= $10,000 Assume Loan period = 1 year Compounded Semi Annually…

Q: The following installment loan is being paid off early. Calculate the rebate fraction, the finance…

A: The finance charged is the total cost that has charged for borrowed the specified amount for…

Q: Find the APR (true annual interest rate), to the nearest half percent, for the following loan.…

A: Formulas:

Q: Amount Financed Interest Rate Term of Loan (years) Number of $1,000s Financed Table Factor (in $)…

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

Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…

A: Formulas:

Q: Use the add-on method of caloulating interest to find the total intorest and the monthly payment.…

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Q: Find the finance charges on a 8.4 percent, 18-month, single-payment loan when interest is computed…

A:

Q: Find the amount of interest (in $) on a loan of $4,000, at 5% interest, for 70 days using the exact…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Information Provided: Amount Financed = $162,300 Interest Rate = 5.25% Term = 15 years

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: AMOUNT FINANCED = $17.910 NO OF PAYMENT = 48 MONTHLY PAYMENT = $550.47 TOTAL PAYMENT = $550.47 x 48…

Q: Given a $5,000 loan at 8% for 90 days, compare the interest accrued using the standard method (365…

A: calculate interest under standard method Interest = ($5,000 / 300) * 85 * 90 /365) Interest  =…

Q: A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of…

A: An interest rate that is modified to eliminate the impacts of inflation in order to reflect the…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: The compounding factor is an important factor that determines the future value of the present money.…

Q: Compute the size of the final payment for the following loan.   Principal​ $ Periodic Payment​ $…

A: A loan is  basically a type of debt that an individual or the other entity incurs. The lender, who…

Q: Find the amount of interest (in $) on a loan of $6,000, at 5% interest, for 80 days using the exact…

A: Under the ordinary interest method, the number of days in a year is assumed to be 360, but under the…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: The time value of money concept is the most important concept that states that the value of money in…

Q: Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per…

A: Simple interest is the simple and easy interest that is charged on a loan. It is calculated by…

Q: Select the correct choice that completes the sentence below. The rebate amount is equal to the…

A: Rebate is a term used in short-selling, which is selling securities that a trader does not own. In…

Q: Investigate the effect of the interest rate on simple interest amortized auto loans by finding the…

A: Computation of monthly payment and total interest: Excel spreadsheet:

Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: The finance charge is that charge which is paid by the borrower on the amount borrowed.

Q: alculate the finance charge (in $) and the annual percentage rate for the installment loan by using…

A: Therefore, the finance charge is $12,334.

Q: Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Exact interest: Interest = Principal * Interest rate Interest = $136,000*7.30%*64/365 Interest =…

Q: asssuming that the interest is the only finance charge, how much interest would be paid on 5,000…

A: The question is based on the concept of Loan and amortization.

Q: SOLVE FOR THE FOLLOWING: Finance Charge = $ Finance Charge per $100 = APR =________________ %

A: in this we have to calculate financial charges after deductions of principal amount payment.

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Here, Amount Finance is $8,800 Number of Payments is 36 APR is 11%

Q: e the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR…

A: In this we need to determine the present value factor monthly and from that we can find out monthly…

Q: Find the amount of interest (in $) on a loan of $6,000, at 5% interest, for 60 days using the exact…

A: Exact interest rate is basically the method in which exact number of days are taken to calculate the…

Q: Find the finance charges on an 8.4 percent, 18-month, $1,000, single-payment loan when interest is…

A: The charge paid to an investor or a fund provider for borrowing money is known as a finance charge…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Annual percentage rate is the  interest rate charged annually on the loan amount by the lender and…

Q: Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage…

A: Solution : Formulae Formulae as above...

Q: payment and the total interest for a four-year loan of $12,000 at me monthly a. 8.5% b. 8.75% с. 9%…

A: Repayment of loan is made in fixed installments which include interest payment and also part of…

Q: Find the APR (true annual interest rate), to the nearest 0.01%, for the loan given below.  Purchase…

A: Given,  Purchase price $4280 Down payment $350. So, the price paid is  $4,280-$350=$3,930

Q: Investigate the effect of the term on simple interest amortized auto loans by finding the monthly…

A: Loan Amount =$10,000 Interest rate = 678% = 558%=6.875%

Q: Find the APR of the loan given the amount of the loan the number and type of payments, and the add…

A: Annual percentage rate (APR) refers to a real interest rate which an investor is expect from his…

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.