On May 6, Jim Ryan borrowed $14,000 from Lane Bank at  7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.)

Q: Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of…

A: Annual Percentage Rate (APR)= (2 * N * FC) / [ (P * (N+1)]

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: Steve Perry borrowed $40,000 at 12% ordinary interest for 60 days. On day 20 of the loan, Steve made…

A: First we need to use ordinary interest formula to calculate interest amount on loan Ordinary…

Q: An employee at LaserKinetics.com borrows $10,000 on May 1 and must repay a total of $10,700 exactly…

A: Interest rate is the rate of return paid from an investment. Amount borrowed = $10,000 Repaid =…

Q: Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer…

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

Q: Patricia has borrowed an amount of Sh. 4 million to start a boutique business in Kileleshwa . The…

A: A loan amortization schedule is used to indicate the amount of principal and interest paid for each…

Q: On December 1, the home mortgage balance was S119,000 for the home owned by Frank Miler. The…

A: Mortgage Balance = 119,000 Interest Rate = 7.4% Monthly Mortgage Payment = 1428

Q: Vanessa initially borrowed $6,400 from RBC Bank at 3.64% compounded semi-annually. After 4 years she…

A: The future value function can be used to determine the future value of a sum at a given discount…

Q: Carter bought a new car and financed $⁢25,000 to make the purchase. He financed the car for 60…

A: Loan amount (PV) = $ 25000 Interest rate = 5.5% Monthly interest rate (r) =…

Q: Adrian received the proceeds from an inheritance on May 14. He wants to set aside enough on May 15…

A: Simple interest is calculated directly on the given principal amount. The formula for calculating…

Q: Calculate the amount of cash payments Zetix was required to make in each of the two calendar years…

A: Calculation of Cash Payment = Amount of Notes Payable * Rate of Interest * 3 Months/12 Months Since…

Q: On April 8, Manuel borrowed $700.00 from his uncle at 5.6% per annum calculated on the daily…

A: In installment loan system, repayment schedule is constructed that show balance of amount due after…

Q: On August 1, the home mortgage balance was $97,000 for the home owned by Kevin Roberts. The interest…

A: The monthly given payment includes Interest amount and Principal amount. Interest will be paid at…

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: On May 8, Manuel borrowed $780.00 from his uncle at 4.6% per annum calculated on the daily balance.…

A: Balance before Payment Amount paid Interest paid Principal repaid Balance After Payment…

Q: On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest.…

A: Introduction: Interest refers to the amount charged by the lender on the lent amount. The borrower…

Q: Joseph used the Quantitative Reasoning Procees to create a plan to pay off his student loans of…

A: Given information: Student loan = $7,680 Monthly Payment = 73.80 Time = 10 Annual interest = 2.9%

Q: Dirk Ward borrowed $12,000.00 for investment purposes on May 8 on a demand note providing for a…

A: Accrued Interest - It is the amount of interest has been incurred over a specific period / date, on…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Pandemic Bank charges 4% for discounting loans. If Super Tekla agrees to repay 3,000 in 6 months,…

A: we will only answer the first question, for the remianing questions, kindly resubmit the question…

Q: Homer promises to pay $1,000 at the end of 6 months in obtaining a loan from a banker who charges 6%…

A: Loan amount (PV) is $1,000 Loan Period is 6 months Interest Rate charged in advance is 6%  (We…

Q: Jason borrowed $2,500 on March 1 from a bank and promised to pay back the money in 90 days at 6%…

A: Amount borrowed “P” = $2500 Number of days “n” = 90 Stated rate of interest = 6%

Q: Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months…

A: Line of credit is a type of bank account which allows business to borrow a certain amount of money…

Q: On March 1, 2012, Jason's Deli loaned $12,000 to Mark Johnson for one year at 5 percent interest.…

A: Given the following information: Principal amount: $12,000 Interest rate: 5% Time period: from…

Q: During four years of college, Nolan MacGregor's student loans are $4,000, $3,500, $4,400, and $5,000…

A: “Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

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: Sixteen Months after borrowing money, Ronron Cayabyab Pays an interest of ₱8,426. How much did he…

A: Simple compound interest calculation is a technique for calculating the portion of interest paid to…

Q: A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for…

A: (a) The amount borrowed by this person : Amount borrowed= $8000/(1.12) = 7142.85 (b) Credit Worth…

Q: Tristan and Bella borrowed $1,700 to buy a dog at 7.5% interest on March 10. They plan to repay the…

A: Given, Amount borrowed = $1,700 Interest rate = 7.5% Loan borrowed = March 10 Repay loan = August 15

Q: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center.  The…

A: Following are the calculation of total interest expense will pay over the life of loan:

Q: On April 8, Manuel borrowed S700.00 from his uncle at 5.6% per annum calculated on the daily…

A: Here, Borrowed Amount is $700 Payment is $110 Interest Rate is 5.6% Compounding Period is Daily

Q: While Jack was a student at the University of Georgia she borrowed $12,000in student loans at an…

A: The nper function in excel can be used for the purpose of determining the amount of time required to…

Q: On April 8, Manuel borrowed $700.00 from his uncle at 5.6% per annum calculated on the daily…

A: The question is based on the concept to find repayment of loans. The repayment will follow the…

Q: Quinn opened an account with an initial deposit of $2500. At the end of the 2nd and 8th years, he…

A: Initial Deposit = $2500 2nd Year Deposit = $3,000 8th Year Deposit = $5,050 Withdraw = $3,000…

Q: While Kate was a student at SA University, she borrowed $16,000 in student loan at an annual…

A: The concept of the present value implies that the money today is  having more worth  than the money…

Q: On September 1, the home mortgage balance was $159,000 for the home owned by Sam Richardson. The…

A: In case or Mortgage Interest is charges on the outstanding balance. we know that Installment…

Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…

A: Borrowed amount = P150,000 Time period = 2 years Rate = 6%

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: On October 1, the home mortgage balance was $166,000 for the home owned by Susan Wilson. The…

A: Balance at the beginning of October Monthly mortgage payment  Interest amount $166,000 $1660…

Q: On April 8, Manuel borrowed $700.00 from his uncle at 5.6% per annum calculated on the daily…

A: Loan Repayment Schedule: Loan payment made at every interval of time which includes principal and…

Q: On April 16, Anthony borrowed$1279 to buy a new laptop. The loan had a simple interest rate of 3.8%…

A: The main source of income for banks or financial institutions is the difference between the interest…

Q: Dan took a loan of P560,000 from L. A. Finance to purchase a car. If the company charges compound…

A: We need to use compound interest formula to calculate amount payable at the end of year 5.The…

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: Clay Harden borrowed $25,000 from a bankat an interest rate of 9% compounded monthly. Theloan will…

A: When a loan is repaid by regular equal payments, each payment includes an interest part and a…

Q: William wants to borrow $42,000.00 today to purchase a car, which bank's lending option will allow…

A: Because you have posted multiple questions, we will answer the first question nly , for the…

Q: Marlon borrowed 15,000 Php from a lending company that charges a simple interest rate of 11%.…

A: Borrowed amount = 15000 Php. Interest rate = 11%

Q: On September 1, the home mortgage balance was $238,000 for the home owned by Susan Gonzalez. The…

A: Total monthly payments are calculated in such a way that it includes portion of interest as well as…

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.