Salma borrowed $600from a bank for 2 years and was charged simple interest. The total interest that she paid on the loan was $84. As a percentage, what was the annual interest rate of her loan?

Q: Yvette purchased a car and she obtained an 7 year term loan with an annual interest rate of 3.12%.…

A: An amortization schedule of a loan provides the breakdown of the monthly payments into their…

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: 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: Jesse borrowed from a bank at 5.92% compounded semi-annually; he settled the loan by repaying $3,055…

A: Interest rate is 5.92% compounded semi-annually Amount repaid is $3,055 every 6 month Time period is…

Q: Daniel paid $825 simple interest on a $1400 loan for five years . What was the interest rate?

A: Given: Simple Interest =$825Principal amount =$1400Time =5 years

Q: Heather took out a loan for 7 months and was charged simple interest at an annual rate of 7.2%. The…

A: To calculate the loan amount we will use the below formula   Loan amount = I/(r*t) Where I -…

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: 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: Mary Toy borrowed $3,000 from her parents and repaid them $3,120 after 9 months. What simple…

A: Formula to calculate r under simple interest is: R = I/PT Where r is the rate of interest, I is the…

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: 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: Jacque's total monthly loan payments are 1020 while her gross income is 3939 per month. What is her…

A: The debt service ratio is the ratio that depicts a companies ability to repay its short-term debt…

Q: Sara made 10 payments of $108.50 to the credit union. The original loan amount was $1000. After she…

A: Payments made = $108.50 for 10 times Original Loan = $1000 Interest Amount = Total Payment made -…

Q: Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the…

A: Present value is the current worth of the future expected cash flows that an investor obtain from…

Q: Keith invested in a savings bond for 3 years and was paid simple interest at an annual rate of 2%.…

A: Time Period = N = 3 years Interest rate = 2% Simple Interest = 120

Q: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

Q: Akbar bought a car on loan and pays the simple interest at 5% amounting to RO 3,000 per annum for 5…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Mariah invested $10,000 in a bank certificate of deposit at a rate of 5% interest compounded…

A: Certificate of deposits is an investment product offered by banks. The interest rates on…

Q: John deposits $2,000 in the first year, $800 in the second year and $600 in the third year to WMW…

A: future value formula: future value = present value×1+rateyear

Q: Nina borrowed money on 31 August and agreed to pay back the loan on 2 November of the same year. If…

A: Solution- Loan taken by Nina=R5000 Date=31st August Rate of Discount=18% Date of Repayment=2nd…

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: katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750,…

A: Given Loan amount = $12000 Loan repayment = $18750

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: Jim invests $15,000 today into an account, If the amount in the account accumulates to $17,364.37 at…

A: The rate of interest can be computed with the help of future value function.

Q: Luis paid off a loan by making a payment of $4,050, which included simple interest of 3% p.a. If he…

A: Payment amount after 6 months (FV)= $ 4050 Annual interest rate (R) = 3% Period  (T) = 6 Months =…

Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…

A: Given: Maturity Value "M" = P405630 Proceeds = 83.84%*P405630 = P340080.192 Number of years = 12…

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: 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: 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: Mariah applied for a loan in a bank that gave 10, 000 pesos monthly payment for 2 years. The first…

A: The present value of an annuity is the current value of the future payments that are calculated…

Q: Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay…

A: Banker's discount is the discount amount calculated on the future value of payable.

Q: Dorothie paid the following amounts during the current year: Interest on her home mortgage…

A: As specified in the question only Ans of part (c) is solved below. The interest deductions for part…

Q: Frank borrowed $200 from a lender that charged simple interest at an annual rate of 9%. When Frank…

A: Simple interest is the additional amount paid on the amount of principal borrowed for a specific…

Q: A woman deposited $10,000 into an account at her credit union. The money was left on deposit for 10…

A: a) at the end of 5 years:F = 10,000 (F/P, ¾%, 60)* = $15,660.00 * i = 9/12 = ¾% n = (12)(5) = 60at…

Q: Ahmad took out a loan for $7500 and was charged simple interest at an annual rate of 4.7%. The total…

A: Simple Interest = Principal * Rate of interest * [ Number of days / 365 ]

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

A:

Q: Smith invests usd 10.000 in an account that pays interest. After the first year he receives 4.200…

A: Future value is the accumulated sum of money that is invested with the motive to earn a certain…

Q: How much must Riley have in the account for Scott to receive the $220 payments for 5 years? If Riley…

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Jamie borrowed $900 from the Essex District Credit Union. The loan agreement provided for repayment…

A: As per the loan agreement repayment of the loan is to be paid in four equal monthly installments…

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: Carol borrowed $5,200 and signed a straight note with an interest rate of 7% per annum. If she paid…

A: A straight promissory note can be defined as that note which does not require periodic payments over…

Q: Melanie invests a total of $7,000 in two accounts paying 6% and 7% annual interest, respectively.…

A: A given sum of money can be invested in various sources to achieve maximum returns.

Q: Mrs. Pores invested P150,000 in a bank that pays an 13% interest converted monthly. If her account…

A:

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: Deon borrowed money from a credit union for 2 years and was charged simple interest at an annual…

A: given information  total interest paid = $144 annual interest rate = 8% credit union = 2 years

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: arie deposits 1,000 into an account that pays interest at an annual nominal rate of interest of ?,…

A: Money is deposited into account that earn the interest on the account and that interest is being…

Q: Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did…

A: Amount borrowed (P) = $5,440 Time (T) = 4 years Rate (R) = 4.1% Total amount to be returned =…

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.