. Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan. What is the annual effective interest rate.   2.  Calculate the effective interest rate if the interest rate is 26% per annum compounded

Q: Q1. Suppose five years ago you received a loan of 500 million Dollars with a nominal interestrate of…

A: Amortization is a repayment method of a loan in equal instalment for a fixed period. The borrower…

Q: A loan of $1400 is being paid off by quarterly payments of $130. If interest is at the rate of 14%…

A: The present value of the quarterly payments is equal to the amount of the loan. Given:Loan amount =…

Q: You borrowed $10000 with an interest rate of 12%. The loan is to be repaid in equal monthly payments…

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

Q: To pay off a loan of P1M, it is required that quarterly payments that increase by P1000.00 be made…

A: The cash flow diagram and the amortization schedule: A cash stream refers to a periodic cash inflow…

Q: ou borrow X for 10 years at an annual effective interest rate of i = 6%. If you pay the loan amount…

A:

Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…

A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…

Q: 2. What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Suppose a bank offer a loan for 2 years with fixed interest rate 9% per year compounded daily.…

A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…

Q: What size monthly payments should occur when $10.000 is borrowed at 6% per year compounded monthly…

A: When the interest on interest is charged on monthly basis, it is known as monthly compounding. It…

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: how much would be available at the end of the time period. How much is the interest earned?

A: Time value of money (TVM) means that the money received in the present period will have more value…

Q: Construct an amortization schedule for a 15-year, $300,000 loan with a 4.2% interest rate compounded…

A: Amortization schedule refers to the statement showing the details of the loan amount, interest…

Q: How much will Kingston Technologies have to pay each year in 11 equal payments, starting 2 years…

A: Number of Payment = n = 11Time = t = 2 Present Value = pv = $900,000Interest Rate = r = 15%

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: When we are investing into particular security, the value of it increases over the period of time.…

Q: Suppose a $18,689 loan has an annual compound interest rate of 3.1% with weekly compounding. If the…

A: Details given to us in the question is as follows: Present value of loan =$18689 Interest rate =…

Q: Assume that an investment of $9000 earns an APR of 6% compounded monthly for 16 months. How much…

A: Data given:P=Principal=$9000r=APR=6% (compounded monthly)n=16 monthsRequired: Amount in the account…

Q: 5. A man takes out a loan of P150, 000 from a credit cooperative, which charges interest at the rate…

A: Simple interest: Simple interest is the amount of interest that is determined for a principal amount…

Q: A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The…

A: To Find: Monthly payment Capital repaid and interest paid in first and lst month Loan repaid after…

Q: Consider a five-year floating rate loan with principal of $10 million and quarterly payments based…

A: Given information: 5 year floating rate loan of $10 million

Q: (4) Calculate the total amount of money that would be accumulated if an amount of money of GH¢ 6,000…

A: An annuity is the sum total of all the periodic payments or investments made over the period of time…

Q: Suppose that you can pay 15,000,000 VND per month for the next 30 years. What is the largest loan…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: 1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. It is computed…

Q: Van Buren Resources Inc. is considering borrowing $120,000 for 168 days from its bank. Van Buren…

A: Financing Costs: Financing costs is nothing but an interest cost that a company would incur for…

Q: A one million peso loan is to be paid annually at an interest rate of 8.00% pa compounded monthly.…

A: Loan amount (L) = P 1 million Interest rate = 8% compounded monthly. We need to find the annual rate…

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

A: a) Loan amount (PV) of $65,000 needs to be repaid in (n) 84 equal installments at an annual interest…

Q: Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year.…

A: The effective annual interest rate (EAR) represents the actual interest rate earned on an investment…

Q: Suppose that $6,300 is invested at 3.1% annual interest rate, compounded monthly: How much money…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: what would be the required interest payment for a 30-day mont

A: Hi student ! Requirement is assumed.

Q: What would be r in this problem? A P100,000 loan is to be paid monthly for 2 years with an interest…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: You have GBP £1,000 and are considering two investment opportunities. Investment 1 pays interest at…

A: In the above case in investment - 1 interest rate is 11% compounded annually whereas investment 2…

Q: You took a loan of 20000 KD today at an interest rate of 4.5%. You agreed to pay back the loan in 6…

A: N = 6 years i= 4.5% To calculate annual repayments , calculate PMT Annual repayment amount=…

Q: . A sum of $145,000 is invested now and left for 8 years, at which time the principal is withdrawn.…

A: As there is more compounding more is effective interest rate and more is for monthly compounding.…

Q: A loan of £14,000 is repaid by annual payments of £1,400 each at the end of the year. How long does…

A: Using time value of money annuity formulas we can solve these questions. 1. Using the below formula…

Q: An orcharder spends $95,000 to plant pomegranate bushes. It will take four years for the bushes to…

A: Given information: Cost of planting bushes : $95,000 Income every year after 4 years : $11,000

Q: 000 loan at a 6% nominal annual rate. The terms of the loan require make 12 equal end-of-month…

A: Loans are paid by equal fixed monthly payments and these carry the payment for interest and loan…

Q: will we owe more or less than $200,000 (half the original loan amount)?

A: Loan Amount: It represents the credit taken by the borrower from the lender. The borrower makes…

Q: 1. Calculate the yield to maturity on a simple loan of $10,000 that requires the repayment of…

A: Present value of loan = $10,000 Future value of loan = $10,600 Time duration = 1 year

Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…

A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…

Q: You are working on a project, that is using a yearly nominal interest rate of 15% per year, which is…

A: The objective of the question is to calculate the effective quarterly interest rate from a nominal…