Order Now Order Now
Login / SignUp
Order Now

Home Free Essays

>>

All Subjects

>>

Finance, Accounting And Banking

>>

Unit 3 Discussion

Unit 3 Discussion

Download

Unit 3 Discussion

Student’s Name

Institution

Date

Customer Loan Situation

A microfinance company called Juric provides loans to its customers at affordable rate. It gives an average of $5,000 to $25,000 short and long term loan to its customers. The interest rate for the company is 7.5% per year for any loan less than $10,000 and 6% for any credit, which is above $15, 000. A customer took a loan worth $ 30,000, which was to be paid after 3 years. What is the interest rate paid for the loan? What is the total amount the customer is expected to pay after the end of 3 years of the loan period?

The total amount to be paid = principle amount X interest rate X time.

In this case the amount is $ 20000, interest rate is 6% and the time is 3 years

Interest of the loan = %20000 X 6%

= $1200

Total interest = 1200 X 3

= 3600

Total amount to be paid after three years = interest + Principle

$ 20000+ $ 3600

= $ 23600

Monthly payment = $ 23600 divide by 36 months

= $ 655.60

However, the customer is expected to pay $23600 after 3 years. In this case it means that the company will get an interest of $3600 and the payment will be done monthly at the monthly rate of $ 655.60. And therefore, it means that the longer it takes to pay off the loan the high interest a client is likely to pay.

More Subjects

Education

(5614)

English

(2294)

Business And Management

(1760)

Healthcare And Nursing

(1684)

Psychology

(929)

History And Anthropology

(743)

Sociology

(572)

IT

(446)

Education

(429)

Finance, Accounting And Banking

(419)

Philosophy

(347)

Political Science

(310)

Law And International Law

(308)

HRM

(300)

Economics

(288)

Biology And Life Sciences

(267)

Literature

(249)

Marketing And PR

(238)

Culture

(140)

Environmental Science

(109)

Geography

(92)

Statistics

(64)

Maths

(53)

International Relations

(44)

Physics

(30)

Chemistry

(25)

Capstone

(8)

Project Management

(8)

Reflective Thinking

(7)

Critical Review

(3)

Linguistics

(3)

Critical Appraisal

(2)

BUS 2090

(2)

English 12 Drama

(1)

Business Information Technology

(1)

Operational Plan

(1)

Corporate Finance

(1)

L2 Photography And Design

(1)

Food Nutrition

(1)

Leadership

(1)

Nursing

(1)

MBA

(1)

Social Enterprise Project

(1)

Government

(1)

Our tools

Essay typer Grammar Checker Plagiarism Checker Citation Generator

Useful Links

Free Essays About Blog

Contact me

info@freeessaywriter.net

If you have any queries please write to us

Join our mailing list

Invalid Email Address!
Thank you for joining our mailing list

Please note that some of the content on our website is generated using AI and it is thoroughly reviewed and verified by our team of experienced editors. The essays and papers we provide are intended for learning purposes only and should not be submitted as original work.

@ All Rights Reserved 2023 info@freeessaywriter.net

Privacy Policy Terms of Service Use Contact
Back to top