Suppose you have a student loan of $35,000 with an APR of 12​% for 30 years.   The required monthly pament is ____

Q: College students are now graduating with loan debts averaging $24,000. a. If students repay their…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years.…

A: Using excel PV function

Q: Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing…

A: To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT. To open…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: You want to borrow 27,500 and can afford monthly pay of $650 for 48 months, but no more. Assume…

A: Given, PV = $27,500 Monthly payment (PMT) = $650 Total periods = 48 months PV = PMT *…

Q: uliana is taking out an $8,700, 3-year loan with an APR of 2.31%. What will be the monthly payment…

A: In this question we need to calculate the monthly payment for the loan .

Q: Determine the monthly payment if you take out a loan for $ 220000 with an annual interest rate of 9%…

A: Given information: Loan amount is $220,000 Annual interest rate is 9% Number of years is 15 years

Q: Suppose you secure a $250,000 mortgage loan to be paid off over 30 years at an annual interest rate…

A: Calculator steps: I/y = rate = 7.1%/12 = 0.5916667% NPER = Number of periods = 30*12 = 360 PV =…

Q: An ARM for $100,000 is made at a time when the expected start rate is 5 percent. The loan will be…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Consider a loan of $2 million that is paid quarterly over a period of 10 years. Calculate the dollar…

A: In case of loan payments a fixed amount is paid in each period. While the amount of each payment…

Q: Pacific Bank offers you a $150,000, 6-year term loan at 10 percent annual interest. What will your…

A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, Present value of annuity =150000 n= 6 r =10%…

Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…

A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.

Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…

A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…

Q: You borrow $200,000 with a 25-year payback term and a variable APR thatstarts at 8% and can be…

A: Calculation of the initial monthly Payment is shown: Formulation is shown: To open the "PMT…

Q: Consider a 30-year fixed-rate home loan of $410,500 with an interest rate of 3.125%. What is the…

A: The monthly payment can be calculated with the help of present value of annuity function

Q: Consider a student loan of $17,500 at a fixed APR of 12% for 25 years. a. Calculate the monthly…

A: Given: Loan Amount = $17500 APR = 12% Number of years = 25

Q: You receive a 10-year subsidized student loan of $29,000 at an annual interest rate of 4.8%. What…

A: Loan payments are given by, L = E(1-(1+r)^-n)/r Where, E = payment = ?? r = interest rate = 4.8%/12…

Q: You have a student loan of 25000 with a fixed Apr of 6 % for 15 years  what is the monthly payment…

A: Using excel PMT function

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…

Q: Suppose that you can pay 15,000,000 VND per month for the next 30 years. What is the largest loan…

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

Q: How many months will it take you to pay off a loan of $17,000 at 7% APR compounded monthly if you…

A: The loan is taken in order to finance the purchase of the asset or for the purpose of expansion. The…

Q: You are saving to pay for your children’s university costs in 20 years’ time. In the first year,…

A: An annuity is a set of the periodic amounts that an investor receives from an investment or deposits…

Q: You want to take out a $450,000 loan on a 20-yearmortgage with end-of-month payments. The annualrate…

A: Repayment of mortgage is made in fixed amount of instalments which includes interest and part of…

Q: You borrow $27,000 with a term of two years at an APR of 5%. Use the Estimation Rule for Short-Term…

A: Given:

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

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

Q: Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 1. If you save…

A: We know, while using excel's function, we need rate, NPER and PMT values and type of annuity…

Q: Suppose a graduate student receives a non-subsidized student loan of $13,000 for each of the 4 years…

A: Please refer to the excel below for calculations. Note: Since the fees is to be paid at the starting…

Q: Consider a loan of 25000 for a period of 30 years at a fixed apr of 9.5% the monthly payment is

A: Given information: Loan amount is 25,000 APR is of 9.5% Number of years (period) is 30

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: The loan amount is $26,100 The monthly payment is $989 The total finance charge is $9,504 The loan…

Q: PLEASE DO THE FOLLOWING ON AN EXCEL SPREADSHEET: Consider a loan of $1,000,000 with the nominal…

A: Given information : Loan amount $1,000,000 Annual interest rate 10% Time period (years) 15…

Q: Consider a student loan of ​$12,500 at a fixed APR of 12​%for 25 years. What is the monthly…

A: Monthly Payment: Monthly payments let a borrower to pay down part of the remaining sum, which is…

Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…

A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: suppose you are offered the following three accounts to invest $10,000 for 20 years: 18% simple…

A: Since only two accounts are offered rather than three accounts. So, the best choice among the two…

Q: Your target is to earn an annualized rate of 5%, what is the most you can pay for a 135-day Treasury…

A: Provided a certain rate of return, present value (PV) is the current value of a potential amount of…

Q: money is in your account after 16 months?

A: Given: Investment amount = $3000 APR =  3% compounded monthly Since, Interest is compounded monthly,…

Q: Suppose you have a student loan of S25,000 with an APR of 12% for 30 years. Complete parts (a)…

A: Loan amount (PV) = $ 25000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 30…

Q: The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: If you take out an amortized loan of $33,000 with a 14 year term and 7.4% interest rate, what are…

A: Using excel pmt function

Q: An ARM for $100,000 is made at a time when the expected start rate is 5 percent. The loan will be…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…

A: Loan amount is the amount that is borrowed by the lender for fixed interest rate and for fixed…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…

A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…

Q: You borrow $150,000 with a 20-year term at a9.3% (APR) variable rate and the interest rate can…

A: A mortgage is a debt instrument, secured by the collateral of specified real estate property, that…

Q: Your business requests a 3-month loan for $450,000. What will be the interest paid at the end of the…

A: Loan Amount = $ 450,000 Business Risk = 2.0% LIBOR = 1.8%

Q: Using 12 percent simple interest per year, how much interest will be owed on a loan of $500 at the…

A: The interest on a loan can be calculated with different techniques such as compound interest and…

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.