You have taken out a 30-year loan of $55,000 with 6% interest (APR) compounded monthly and with monthly payments. Calculate the amount of your second principal payment. Round your final answer to one decimal place.

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: Assume you graduate from college with $30,000 in student loans. If your interest rate is fixed at…

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

Q: If you borrow $2800 and agree to repay the loan in 5 equal annual payments at an interest rate of…

A: Using excel PMT function to calculate the yearly payment

Q: You repay a student loan of $20,000 in equal monthly installments over 5 years at a nominal interest…

A: Equated monthly installment is referred to as an amount payable for each and every month to the bank…

Q: Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $73,000 at an APR…

A: The PMT function can be used to determine the monthly payments required to pay off a loan within the…

Q: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 28000 at the time…

A: Loan amount (L) = $28000 Interest rate (r) = 8.5% per annum = 0.70833% per month n = 10 years = 120…

Q: Calculate the total amount due after six years on a loan of $1500 with a simple interest charge of…

A: First question:Principal, P = $ 1,500; interest rate, r = 8%; Term, t = 6 yearsHence, amount due at…

Q: You take one-year installment loan of $1000 at an interest rate of 12% per year (1% per month) to be…

A: Loan amount (L) = $1000 r = 1%  n = 12

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

A: We need to use compound interest formula to calculate the amount due A=P(1+i)n Where A= amount…

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: Tony is converting an RRSP balance of $275,000.00 into a RRIF. Tony wants to receive $1,911.00 at…

A: Time value tells that money received today is of more value than that of receiving the same value…

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…

A: The future value of an amount is the future worth of an amount calculated based on the time value…

Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…

A: deposit made at the end of each year = $5200                        interest rate annum     = 10%…

Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…

A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…

Q: You plan to deposit $900 PER YEAR into an account earning 5.25% interest compounded annually. How…

A: Since you posted multiple questions ,we will solve the  second page last question for you. if u want…

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: The going annual interest rate for a loan with a term of 30 years is 6% compounded monthly. The…

A: Going interest rate is the interest rate that is prevailing in the market for loans or bonds. It is…

Q: To borrow $600, you are offered an add-on interest loan at 9 percent. Two loan payments are to be…

A: Given: Borrowed amount =$600Annual interest =9%   Amount to be paid =Principal + Interest=$600 +…

Q: If you borrow $9,000 and agree to repay the loan in six equal annual payments al an interest rate of…

A: Present worth is the value of the amount in current time which is expected to be paid or received in…

Q: You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years.…

A: The question gives the following information:

Q: If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate…

A: Loan means lending money by one or more individuals or organizations to other individuals or…

Q: You have approached Which Bank for a loan to buy a house. The bank offers you a $400 000 loan,…

A: Given Information:Loan amount is $400,000 Interest rate is 9% (compounded monthly) Loan tenure is 20…

Q: you are taking a $100,000 mortgage loan for your business to be repaid over 5 years in equal…

A: Mortgage loan is the loan which is given by keeping something as collateral. This loan is for…

Q: Suppose you take out an auto loan for $25,500 over a period of six years at an APR of 7.5%.…

A: The annual percentage rate refers to the yearly rate of interest paid for a loan or received from an…

Q: You have taken out a home loan of $400,000 at an interest rate of 3.6% per annum compounded monthly.…

A: A loan is a debt amount borrowed by one person from another person. A loan payable in equivalent…

Q: A loan is to be repaid quarterly for 10 years that will start at the end of 3 years. If the interest…

A: Given information: Interest rate : 3% converted quarterly Time period : 10 years Quarterly payment :…

Q: Taking out a 21 year loan at $59,000 with 6% APR compounded monthly, and with monthly payments,…

A: Therefore, second principal payment is $117.9.

Q: You have taken out a 20-year loan of $72,000 with 3% interest (APR) compounded monthly and with…

A: Annual percentage rate (APR) is a rate that a person is paying annually after undertaking all the…

Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…

A: The present value of annuity refers to the current value of regular payments made at fixed intervals…

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: You have taken out a 60-month, $26,000 car loan with an APR of 6%, compounded monthly. The monthly…

A: Loan Amortization Schedule gives the information of your loan and how you'll repay it. The payment…

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

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

Q: If you borrow $9,983 and are required to pay back the loan in five equal annual installments of…

A: Loan is an agreement between lender and borrower where lender provide funds to borrower for definite…

Q: Use the appropriate formula to find the amortization payment you would need to make each three…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: Jason's loan for $8500.00 is repaid by equal payments of $525.00 that are made at the end of every…

A: The formula for effective rate is: i=q1+rmmq-1Where, q is the new compounding and m is the old…

Q: You have taken out a home loan of $400,000 at an interest rate of 3.6% per annum compounded monthly.…

A: Given question: Amount of loan : $400,000 Rate of interest : 3.6% per annum  Number of payments :…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage. What is your monthly payment?…

A: To calculate the monthly payment we will use EMI formula as follows:   Monthly payment =…

Q: If you borrowed S 15,000 to be repaid in 20 equal quarterly payments and after your 10th payment you…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: what will be your monthly​ payment?

A: Sum of money borrowed if not paid immediately, then over a period of time as per agreement is…

Q: A recent graduate's student loans total $18,000. If these loans are at 4.2%, compounded quarterly,…

A: Given: Loan = $18,000 Interest rate = 4.2% Years = 6

Q: You have taken out a 23-year loan of $78,000 with 5% interest (APR) compounded monthly and with…

A: Therefore, the amount of your second principal payment is $151.7.

Q: A recent graduate's student loans total $17,000. If these loans are at 5%, compounded quarterly, for…

A: Given: Loan amount = $17,000 Interest rate = 5% Years = 8

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.