The maturity value of a three-month loan of 2,500 dollars is 2,577 dollars. Find the simple annual interest rate?

Q: Suppose you take out a loan for 180 days in the amount of $11,500 at 14% ordinary interest. After 60…

A: A loan is an amount borrowed by a party in exchange for its repayment along with some interest.

Q: A car loan for $19,500 has an interest rate of 4.25% and is amortized over 60 months.  What is the…

A: Monthly payment of loans is popularly also known as EMI ( Equated Monthly Installments) which is a…

Q: Find the refund fraction on a 30-month loan with interest of $2,802 if the loan is paid in full with…

A: Refund fraction is the amount of interest refund a lender makes to the borrower because of early…

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 5.70%. What…

A: Here, Nominal Interest Rate is 5.70% Therefore, Monthly Interest Rate will be: =5.70%12=0.475% Loan…

Q: FIND THE SIMPLE INTEREST ON 8,000 LOANED AT AN ANNUAL INTEREST RATE OF 12% FOR TWO YEARS. IDENTIFY…

A: Formula: Maturity value = Principal + Interest amount

Q: a) For a loan of $55,000, with an annual interest rate of 5 % p.a. compounded monthly, and monthly…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest refers to the return on savings or interest on the investment…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: Find the interest refund on a 35​-month loan with interest of ​$2,834 if the loan is paid in full…

A: Data given: Total months =35 Remaining months = 13 Interest =$2834 Find=Interest refund=?

Q: A loan of $11,300 is to be amortized with quarterly payments over 6 years. If the interest on the…

A: Time value of money is the concept where the value of money today is higher than the value of money…

Q: A loan of P5,000 is made for a period of 15 months, at a simple interest rate of , what future…

A: We need to use simple  interest formula to calculate future amount due after loan period…

Q: Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent…

A: A loan amortization table is a schedule of payback of a loan in equal installments planned at a…

Q: How many weeks would it take to increase the debt of a simple discount loan by 176% if the annual…

A: Current value (PV) = 100 (Assumed) Future value (FV) = 100*(1+1.76) = 100*2.76 = 276 Interest rate…

Q: A payday loan is made for six weeks, where the amount of the interest owed per $100 borrowed is $20.…

A: Payday loan: This is a short-term borrowing method where a high interest is charged to the borrower…

Q: what was the corresponding interest rate if it compounded quarterly?

A: Interest Rate: It is the rate for computing either the present value of an amount or the future…

Q: Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per…

A: Simple interest is the simple and easy interest that is charged on a loan. It is calculated by…

Q: A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12…

A: Loan balance at the end of year 1 can be calculated using  FV (rate, nper, pmt, [Pv], [type]) Rate…

Q: The maturity value of a three month loan of $2,500 is $2,577. Find the simple annual interest rate…

A: Future Value = 2577 Loan = 2500 Time Period = 3/12 = 0.25

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: Find the annual simple interest rate of a loan, where $200 is borrowed and where $218 is repaid at…

A: Interest rate =( Interest / amount ) *(1/time)

Q: Consider a standard mortgage (360 months) with monthly payments and a nominal rate of 6.80%. What…

A: Given information: Assume present value is 100 Nominal interest rate is 6.80% Number of periods is…

Q: A payday loan company charges a $45 fee for a $550 payday loan that will be repaid in 18 days.…

A: In this question we need to compute the equivalent annual interest rate.

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

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

Q: Calculate the daily and annual rate on interest charged on a payday loan of $400 if the interest c…

A: Payday loans are small period loans on which interest is charged as lump sump amount on the original…

Q: Calculate the maturity value of a simple interest, 3-month loan of $8000 if the interest rate is…

A: Given: Period = 3 months Loan = $8,000 Interest rate = 5.6%

Q: How many months will it take to pay off a $525 loan, with monthly payments of $15 at the end of each…

A: Compounded quarterly means the interest on the outstanding balance is calculated quarterly and added…

Q: A six-month loan of 20,000 at a nominal rate of 12% convertible monthly will be repaid with six…

A: Loan monthly payments are given by, Loan amount = PV of all payments  PV = C/(1+r)n Where, C =…

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

A: some borrowers who take installment loan wishes sometimes to prepay installments, so they are…

Q: What is the yield to maturity on a simple loan for$1,500 that requires a repayment of $15,000 in…

A: Individuals, corporates, and governments take loans to finance their needs. The interest rate on the…

Q: What are the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent…

A: Payment on maturity of loan = Amount of loan + Interest cost Interest cost (Simple annual interest)…

Q: For a short-term cash requirement of $ 85,000, a 12-month term loan with equal installments will be…

A: Loan Amount = 85,000 Monthly Interest Rate = 1.75% Time Period = 12 months Monthly Payment = [Loan…

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

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: A mortgage of $176,000 is to be repaid by making payments of $1010 at the end of each month. If…

A: A mortgage is defined as the kind of loan given to someone in exchange for something valuable. The…

Q: The total amount paid on a GSIS loan is ₱41,500. If the loan was paid within 30 months at 6 ¼ %…

A: Given Information: Total amount of Loan Paid(A) = ₱41,500 Time Period = 30 months Simple Interest(r)…

Q: How many monthly payments are required to repay a loan of $12,000 with an interest rate of ¾% per…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a…

A: Principal Amount = $800 Time Period = 6 Months Interest = $44

Q: Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent…

A: Amortization Schedule: It is a schedule showing the loan payments, principal amount, and interest on…

Q: A loan is being repaid by 20 level annual payments of R, where R is three times the amount of…

A: Given: Number of level annual payments: 20 Level payments: R R is three times interest accruing in…

Q: How much interest is paid in the third year? How much total interest is paid over the life of the…

A: Loan: It is the sum of money given to the borrower by the lender for a period of time. In return,…

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.