katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750, calculate the interest charged.

Q: Amy received a 25 year loan of $325,000 to purchase a house. The interest rate on the loan was 2.20%…

A: Given, The loan amount is $325,000 Term of loan is 25 years Interest rate is 2.2% compounded semi…

Q: A couple secured a 4,000,000 php housing loan from a financing company that gives 12% interest…

A: Equal monthly installment (EMI) is a monthly amount paid towards the loan taken by the borrower.EMI…

Q: Jane requested a loan from a bank amounting to P186,980 to continue her small business. But she only…

A: A loan is an arrangement in which borrower receives money from the lender which is to be repaid…

Q: Reena took a loan of 1200 with simple interest for as many years as the rate of interest. If she…

A: Loan amount= 1200 Interest amount= 432 Rate of interest=?

Q: Laura deposited $1,100 at the end of every month into an RRSP for 6 years. The interest rate earned…

A: Future Value of Annuity formula will be used to calculate the value of monthly instalments at the…

Q: YVette purchased a car and she obtained a seven year term loan with an annual interest rate of 3.84%…

A: Time Period of loan = 7 years or 84 months Interest Rate = 3.84%/12 = 0.32% per month Balance due…

Q: Justin is financing S169,600 for a home at 5.25% interest with a 25-year fixed-rate loan. Find the…

A: Using excel pmt function

Q: On May 1, 2020, Hazel borrowed a sum of money from Far East Bank , payable for 2 years at 8% simple…

A: The amount of Simple interest is obtained by multiplying the rate of interest and the time period in…

Q: Greg owes two debt payments – a payment of $5316 that was due in 13 months ago and a payment of…

A: The date at which values of all payments are calculated by compounding past and discounting future…

Q: Your father obtained a car loan for ₱800,000 with an annual rate of 15% for 5 years. Direction:…

A: In simple interest the interest is calculated by multiplying the principal with time and interest…

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: Mr. Sosa borrowed Php. 1,500,000 for the purchase of a car. If his monthly payment is Php.27,000 on…

A: The total amount of interest paid over the life of mortgage can be calculated by subtracting total…

Q: Amishi deposited $800, at the end of each six months for 19 years in a savings account. If the…

A: The future value of an annuity is the value of a series of equal payments each period calculated at…

Q: Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for…

A:

Q: Mary takes out a 20-year loan of $10,000. She repays her loan using the sinking fund method. She…

A: Sinking fund: It is a fund maintained by a company in which only interest payments are made during…

Q: Salma borrowed $600from a bank for 2 years and was charged simple interest. The total interest that…

A: The annual interest rate on the loan is calculated using the simple interest formula given as below:…

Q: Lauren deposited $1,200 at the end of every month into an RRSP for 7 years. The interest rate earned…

A: Deposit = 1200 per month END OF PERIOD DEPOSITS Time Period = 7 Years  × 12 = 84 Months   Semi…

Q: Tom borrowed money from a credit union for 6 years and was charged simple interest at an annual rate…

A: The loan is the sum of money borrowed by the borrower from the lender, where the borrower agrees to…

Q: Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: eila borrowed PhP 60,000 with an interest of 3% from her collegue on January 15 and then she agreed…

A: Simple interest is the interest calculated on the principal portion of a loan.

Q: Greg owns two debt payments - a payment of $5338 that was due in 11 months ago and a payment of…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she…

A: Investment (P) = $4000 Period (T) = 2 Years Interest amount (I) = $400

Q: Allison purchased a house for $350,000. She made a downpayment of 30% of the value of the house and…

A: Given: Particulars Amount Cost of house $350,000 Down payment 30% Interest rate 6.50%…

Q: Leona Jefferson purchased a home and obtained a 25 year loan of 436,250$ at an annual interest rate…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: Juan took out a $20,000 loan for 146 days and was charged simple interest. The total interest he…

A: We need to use simple interest formula to solve this problem Simple interest =Principal*Rate*Time

Q: Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Andy borrowed P9000 from Randy today and P12000 two years after and made a partial payment of P7000…

A: The present value of the two payments will be equal to the outstanding balance at the end of the 3rd…

Q: Don takes out a 10-year loan of L, which he repays with annual payments at the end of each year…

A: Answer:

Q: Nona purchased a new car earlier today for $32,000. She financed the entire amount using a five-year…

A: GIVEN, R = 3% LOAN AMOUNT = $32000 N= 5 YEARS = 60 MONTHS PMT = P×R12×1+R12N1+R12N-1PMT =…

Q: Tess purchased a house for $475,000, she made a down payment of 25.00% of the value of the house and…

A: Here, To Find: Part 1. Monthly payment =? Part 2. Principal Balance at the end of 6 years =? Part…

Q: Jane requested a loan from the bank amounting to 312,870 to continue her small business. But she…

A: Requested loan amount is 312,870 Loan amount is 84.68% of requested amount Time period is 8 years…

Q: urchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a…

A: The loans are paid by the monthly payments that carry the payment for interest and payment for…

Q: On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.98 million by paying…

A: Total interest expense deductible is calculated by multiplying interest expense by the ratio of…

Q: Leona purchased a home and obtained a 25 year loan of 437,750$ at an annual interest rate of 6.5%.…

A: given, n = 25years r= 6.5% m = 12 p = 437,750

Q: When Albertina opened her law office, she bought $19,000 worth of law books and $6500 worth of…

A: Given: Total cost = $19000 for law books + $6500 for furniture = $25500  Down payment =$1700 So,…

Q: Lamis borrowed OMR 10,000 from Bank Muscat with an interest rate of 5% for 3 years. The amount she…

A: The amount that has to pay after three years is the sum of principal and compound interest on the…

Q: Erica borrowed money from Charles an amount of 58,744 and promise to pay at the end of second and…

A:

Q: three years ago , the Kennedys purchased a house and took out a mortgage of $ 1,000,000 from the…

A: Mortgage: It is the loan that is granted by the lender to the borrower for purchasing a real estate…

Q: Sarah secured a bank loan of $200000 for the purchase of a house. The mortgage is to be amortized…

A: Excel Spreadsheet: Excel Workings:

Q: Tytos borrowed $16500 to pay for the wedding of his daughter, Genna. Tytos repair the loan after 3…

A: Given: Borrowed = $16,500 Years =3 Repaid = $19,224

Q: Kia deposited $1,100, at the BEGINNING of each year for 25 years in a credit union account. If the…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that…

A: Loan amount = $ 4,000 Period = 5 Years Interest amount = $ 1,600

Q: Muhammad borrowed $ 5,000 from a bank 7% annual interest, provided that Muhammad pays the loan in…

A: Annual payments for the loan is calculated y present value of annuity formula. Total interest on…

Q: If Martha borrowed $22,000 from Wachovia Bank at 7.5 percent interest for 3 years, the principal…

A: Face value of loan will be present value of loan.

Q: How much money did he borrow if the interest is 8% compounded quarterly ?

A: Principal amount is the amount initially invested in a deposit account or the net amount borrowed by…

Q: Mark borrowed an amount of P8,830 from Brian and after 2 years, he borrowed again an amount of…

A: Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on…

Q: Eleven months after borrowing money, Dorah pays an interest of ₱2,800. How much did she borrow if…

A: In order to find the principal amount one has to find the yearly interest rate and then principal.

Q: Helen purchased a house for $350,000. She made a downpayment of 15% of the value of the house and…

A: (a) Computation of size of monthly payment is calculated with the help of following formula: Where,…

Q: Jordan purchased an annuity that had an interest rate of 4.00% compounded semi-annually. It provided…

A: In this we need to calculate effective rate and than find out present value factor and from that we…

Q: Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the…

A: Solution:- When an amount is deposited somewhere, it earns interest on it.  The amount invested is…

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.