lie has a credit card with an APR of 27.99% and a current balance of $9,325.65. She wants to pay it off in 3 years. What will Julie’s monthly payment be? (Remember a credit card is compounded monthly.) Round to the nearest dollar

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $225/month into…

A: Annuity refers to series of annual payment which is paid or received at start or end of specific…

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: Alex Karev has taken out a​$220,000 loan with an annual rate of 12 percent compounded monthly to pay…

A: Loan amount (L) = $220000 Interest rate (r) = 12% per annum = 1% per month Let the number of months…

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

A: P = $ 4000 r = .135 t = (10/12) years

Q: Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her money…

A: FV = PV * e^(rt)

Q: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…

A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…

Q: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…

A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…

Q: Grandma Riley wants to help Scott while he's in college by giving him a S220 monthly allowance for 5…

A: Time Value of Money:The time value of money is the idea that the value of money received today will…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: 6. Genesus wants to buy a car. Her monthly income is $800, and she already has a credit card payment…

A: Debt to income ratio Monthly recurring debt / Gross monthly income

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information: Future value of car : 255000 Time period : 4 years Interest rate : 14%

Q: Gwen decides to make regular deposits every month into an account that earns 8% annual interest,…

A: The question is based on concept of present value and future value of money .  formula as: FV=pmt…

Q: Maeve wants to borrow money to purchase a car.  They can afford to pay back $200 a month.  If they…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

Q: How much should Bianca have in a savings account that is earning 2.50% compounded monthly, if she…

A: Solution:- When an equal amount is withdrawan each period at end of the period, it is called…

Q: When Maria Acosta bought a car 2 1/2 years ago, she borrowed $10,000 for 48 months at 7.2%…

A: Compound interest refers to the amount to be paid on the borrowed amount for a definite period. It…

Q: Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12%…

A: given, bank loan = $35,000 installment = 5 interest = 12%

Q: Natasha is going to take out an unsubsidized student loan of $13,500 at a 4.2% APR, compounded…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Q: A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5…

A:

Q: a wants to give her daughter Mara a financial gift on the latter's college graduation two years now.…

A: Solved using Financial Calculator  PV = -2,000 FV = 5,000 N = 2 years * 4 quarters = 8 CPT I/Y =…

Q: Josie wants to be able to celebrate her graduation from CSULA in 4 years. She found an annuity that…

A: *As per bartleby in case of interlinked question, answer first 3 only   Here in the given question…

Q: Ellen is shopping for a truck and has up to $325 to spend biweekly at a dealership in Selkirk, MB…

A: Maximum bi-weekly payment "PMT" = $325 Number of years = 25 Number of periods "NPER"= 5*52/2 = 130…

Q: Karen Wilson thinks that she needs to borrow $7,600 for 2 years. She doesn’t have a very good credit…

A: The interest paid to the lender can be calculated with the help of future value of annuity function.…

Q: Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Add-on interest loans combine the principal and interest into one amount that is owed and later paid…

Q: Lauren knows she can afford to make monthly payments of $300 for 48 months.  How much will the bank…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: LaTisha owed $65,000 when she graduated from college. Suppose her 10-year loan had an APR of 4.5%…

A: The total interest spent on loan will be Total interest on loan =Monthly payment*number of periods…

Q: If this family of 4 wants to save up for a vacation in 2 years, how much should they deposit each…

A: To calculate monthly saving for vacation future value of annuity formula will be used. To calculate…

Q: A middleclass woman wants a luxury bag so much that she is willing to pay the bag in installment as…

A: Monthly payment in year 1 = P 5000 Monthly payment in year 2 = P 4000 Monthly payment in year 3 = P…

Q: Jason has a credit card with an APR of 29.5% and a current balance of $13,150.35. He wants to pay it…

A: APR = 29.5% Monthly interest rate (r) = 29.5%/12 = 2.45833333333333% Current balance (PV) = $…

Q: Taylor Swift, a college student of USeP decides to get a student loan amounting to $4000 with an…

A: Given, The loan amount is $4000 Rate is 5% compounded monthly Monthly payment is $250

Q: Ken wants a $1,000 TV/sound system. He can't afford that amount, so he uses a credit card with 20%…

A: It is an example of simple interest. An interest of 20%/12 is given every month on $1000 for a…

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: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

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: What will be the deposit amount for Jane if she wants to buy a car within 7 years with a price of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years

Q: Michele has a credit card with an APR of 28.99% and a current balance of $12,357.62. She wants to…

A: Current balance (PV) = $ 12357.62 APR = 28.99% Monthly interest rate (r) = 28.99%/12 =…

Q: Anh decided to buy a new car that costs $35,500. She knows that she can get a 6-year loan at 3.8%…

A: 1. Calculate the present value of the monthly payments that the individual can afford by using EXCEL…

Q: Sylvia wants to buy a car and feels that she can afford payments of $200 per month (month-end…

A: Using excel PV function Where PMT is the monthly payment NPER is the compounding periods RATE is…

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

Q: Sebastian checks Daniel’s credit rating and determines that he will qualify for a 4% auto loan, and…

A: Cost of the car = $39,900 Trade-in Value = $8,500 Loan Amount = $39,900-$8,500 = $31,400 Years = 4…

Q: A recent college graduate buys a new car by borrowing $16,000 at 6%, compounded monthly, for 5…

A: Payment of loan made in fixed installment which includes interest as well as portion of principal,…

Q: Sofia and Manuel are purchasing a home. They wish to save money for 15 years and purchase a house…

A: Given: Time =15 yearsMonths =15×12=180Value of House =$200000Rate =5% compounded…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…

A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…

Q: Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest…

A: Interest is an extra amount which borrower has to pay on the deposited amount for the period. It is…

Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

A: Given two loan options. We have to find the total payments made for both options and select the one…

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…

Q: Mike has a credit card balance of $30,000. The annual interest rate is 17%. He is required to pay a…

A: Credit Balance  $  30,000.00 Annual Interest Rate  17% Minimum Payment 4% or  $        50.00…

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.