Answered: V5.Loan amount $75000 interest rate -…

V5.Loan amount $75000 interest rate - 3.15 % if I earn a salary of $40000 with 4% growth for 10 years . how long will it take to pay of the loan

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 8EP

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Concept explainers

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.

Question

V5.Loan amount $75000

interest rate - 3.15 %

if I earn a salary of $40000 with 4% growth for 10 years . how long will it take to pay of the loan

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