You have $2,650 balance on your charge card, and the finance charge is 16.8% annually. You send in the minimum monthly payment requested, which is $40. How much of this payment decreases your debt_______________________? And how much is the finance charge_________________?

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: Pursell Bank offers you a five-year loan for $100,000 at an annual interest rate of 6.8 percent.…

A: Here, Loan Amount is $100,000 Interest Rate is 6.8% Loan Period is 5 years Compounding Period is…

Q: You have credit card debt of $1,000 at 20% APR compounded monthly. If you charge no more purchases…

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

Q: You have a student loan of $35,000. The bank charges 6% interest annually. You decide to pay the…

A: Dear student as the question provided loan amount, annul rate of interest and monthly payment and…

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

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent,…

A: We use NPER function to calculate monthly payments (in financial calculator and excel)

Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: Annual Percentage Rate It  the total  interest paid  each year which is before consideration for the…

Q: How many months will it take to pay off a credit card debt of $4,000 by paying $250 per month at an…

A: Using NPER function in excel

Q: An individual is purchasing a $15,000 automobile, which is to be paid for in 48 monthly installments…

A:

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: Recently, you made multiple large purchases on your credit card totaling $16,575. The interest rate…

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

Q: A lender requires PMI that is 0.8% of the loan amount of $460,000. How much (in dollars) will this…

A: Given information: Loan amount is $460,000 PMI requires 0.8% of loan amount

Q: how long will it take for teh account to be paid off?

A: Formula for loan amortization A= [i*P*(1+i)^n]/[(1+i)^n-1] Formula for calculating number of…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

Q: Suppose you take out a 20-year mortgage for a house that costs $399,842. Assume the following: The…

A: Here,

Q: What are the proceeds (in $)?

A: A promissory note is a written form in which one party promises ta pay to other party for some…

Q: John borrows $50,000 at an annual effective rate of 6% and will make payments 3. at the end of each…

A: The balance after the 10th loan payment can be ascertained by computing the future value at the end…

Q: You are purchasing a $18,000 used automobile, which is to be paid for in 36 monthly installments of…

A: Given:

Q: Suppose you have a Visa credit card and pay a 20 percent annual fina charge (1.67 percent per month)…

A: The credit card charges interest on average daily balance and finance charges on based on month on…

Q: You have credit card debt of $25,000 that has an APR​ (monthly compounding) of 17%. Each month you…

A: The computation of the additional borrowing as follows:

Q: The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to…

A: Maximum amount to borrow = Remaining balance for monthly payments/ current mortgage rate

Q: A lender requires PMI that is 0.8% of the loan amount of $470,000. How much (in dollars) will this…

A: Working note:

Q: Suppose you obtain a 25- year mortgage loan of 191,000$ at an annual interest rate of 7.9%. The…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Recently, you made multiple large purchases on your credit card totaling $10,350. The interest rate…

A: Formulas:

Q: Tyler is borrowing $6000 on an 8.8% 30 month single payment loan if the discount method is used…

A: APR also known as annual percentage rate is the rate which is paid by borrowers to investors. It…

Q: A local finance company will loan $15,000 to a homeowner. It is to be repaid in 36 monthly payments…

A: Loan Amount (Present Value) = 15,000 Future Value = 0 (Loan repaid in monthly installments with no…

Q: how much would you save or lose by taking the debt consolidation company’s offer?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: You have an outstanding student loan with required payments of $825 per month for the 42 months. The…

A: Monthly payment refers to the equal payments that are required to be paid by the borrower to the…

Q: Suppose you obtain a 20-year mortgage loan of $194,000 at an annual interest rate of 8.2%. The…

A: Periodic Payments (PMT) refers to the amount need to de deposits regularly ( Yearly, Quarterly,…

Q: Suppose you take a 10-year mortgage for a house that costs $252,923. Assume the following: The…

A: mortgage amount =252923 Down payment =10% Down payment =25292.30 mortgage amount =252923-25292.30…

Q: If you take out an $7,900 car loan that calls for 60 monthly payments starting after 1 month at an…

A: Given information: Car loan amount $7,900 Number of periods is 60 monthly payments APR is 12%

Q: Prescott Bank offers you a five-year loan for $54,000 at an annual interest rate of 7.5 percent.…

A: The annual loan payment is the regular installment of the total loan, which repays at a regular…

Q: You receive a car loan of $22,000 and must pay off the loan in 60 monthly installments. If your…

A: The periodic payment for a loan can be found using the PMT Function in excel. PMT = (RATE, NPER, PV,…

Q: A debt of $200,000 is accruing interest at 9% compounded daily. If it is to be repaid by monthly…

A: in this we have to calculate present value FACTOR and period required.

Q: You have taken out a 60​-month, ​$27,000 car loan with an APR of 7​%, compounded monthly. The…

A: Amount towards Interest = Outstanding balance*periodic interest rate Amount towards principal =…

Q: A borrower had a loan of $70,000.00 at 6% compounded annually, with 8 annual payments. Suppose the…

A: The question is based on the concept of Loan & Amortization.

Q: ou are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is…

A: Since we answer up-to three sub-parts, we shall answer first three. Please resubmit a new question…

Q: You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded…

A: Calculation of minimum monthly and weekly payments:Answer:The minimum monthly payment and weekly…

Q: A lender requires PMI that is 0.7% of the loan amount of $490,000. How much (in dollars) will this…

A: Working note:

Q: Suppose you run up a debt of $300 on a credit cardthat charges an annual rate of 12 percent,…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: Calculate the effective annual interest rate being charged for the loan.

A: Effective Annual Interest Rate EAR = (1+in)n -1 where: i=Nominal interest rate n=Number of periods​…

Q: You take out a 4-year, $3,750 loan at 8% simple annual interest. The lender charges you a $150 fee.…

A: Definition: Interest: Fee charged on the borrowed amount.

Q: You just received an offer in the mail to transfer your $5,000 balance from your current credit…

A: Calculation of fewer payments to pay off the debt: Answer: The number of payments will be less by…

Q: Suppose you obtain a 30-year mortgage loan of 194,000$ at an annual interest rate of 8.4%. The…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.