1. Chelsie borrowed 10,000 from a financial institution at an interest rate of 1% monthly. The monthly payment she pays is 554.15. Find the number of periods required to repay the loan? 2. Mary Rose borrowed money from a bank amounted 12,000 with an interest rate of 11.5%, the monthly installments are 313.07. how long will it take to repay the loan? 3. ABC company has borrowed money from a financial institution that will be paid for about 2 years with monthly installments of 6,000. How much is the principal loan?

Q: I borrowed $3650 from a bank for 8 months. The bank discounted the loan at 7.5%. How much interest…

A: We need to use simple interest formula below to calculate interest or discount on loan.Simple…

Q: Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge…

A: Principal Amount = p = $1400Interest = i = $70Service Charges = sc = $12Number of Payment = n = 12

Q: Joshua borrowed $500 for one year and paid $50 in interest. The bank charged him a service charge of…

A: Annual Percentage Rate (APR)= (2 * N * FC) / [ (P * (N+1)]

Q: Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%. What is…

A: The loan discount refers to the loan in which the borrowers get the money after reducing the…

Q: Michael Perez deposited a total of $3000 with two savings institutions. Bank A pays interest at the…

A: Total amount deposited = $3,000Bank ALet Amount deposited in Bank A be P.Annual interest rate = 6%…

Q: What is the finance charge (in $) on the loan? $   (b) Use Table 13-1 to find what annual percentage…

A: Finance Charge: It is the cost in relation to borrowing money or the payment of any loan…

Q: Charmaine obtains a loan for home renovations from a bank that charges simple interest at an annual…

A: As per the given information: Rate of interest charged by a bank - 9.65% simple interest. Loan…

Q: Keiko obtains a loan for home renovations from a bank that charges simple interest at an annual rate…

A: Given: Principal (p) = $ 16, 500 Time  (t)=76365 Interest rate (r) = 9.65% = 0.0965

Q: A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over…

A: Monthly payment refers to the amount of money payable every month by the borrower to the lender of…

Q: Henry takes out a $650 discounted loan with a simple interest rate of 12% for a period of 7 months.…

A: A discounted loan is a loan where the borrower has to pay the face value at maturity and receives…

Q: Beverly borrowed $12,600.00 at a low interest rate of 2.2% compounded monthly for 3 years to pay off…

A: This is a question based on time value of money equations. We will apply them to solve the question.

Q: Maya borrowed $700 from a lender that charged simple interest at an annual rate of  6%. When Maya…

A: A loan is a borrowing that an individual or entity takes into account. A lender is the other side in…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: Finance charges are the interest paid on the loan and these are additional payments over the loan as…

Q: To go on a summer trip, Keith borrows $600. He makes no payments until the end of 2 years, when he…

A: When we talk about simple interest rates, we're talking about a straightforward technique of…

Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed…

A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11

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: o help open up a jewelry store, Kaitlin borrowed money from her credit union. She took out a…

A: Time value of money is used to calculate the monthly instalments, rate of interest, total amount to…

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

Q: To go on a summer trip, Bob borrows s700. He makes no payments until the end of 4 years, when he…

A: The total interest to be paid is calculated as simple interest amount for 4 years whereas total…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: Given information : Purchase price = $8350 Down payment = $1300 Monthly payments = $237.38 Time…

Q: Suppose Olivia has $7,020 in credit card debt on the B credit card which has annual interest rate of…

A: Credit Card: It represents a card issued by the banks as a service of allowing cardholders to…

Q: Suppose Olivia has $6,660 in credit card debt on the VB credit card which has annual interest rate…

A: A credit card outstanding is subjected to annual interest rate of 18.2% on the first card, and 0% on…

Q: 2. Simple versus compound interest Financial contracts involving investments, mortgages, loans, and…

A: The idea of the time value of money (TVM) holds that a quantity of currency is considerably more…

Q: 8. Joseph borrowed a single-payment loan of $12,000 at an interest rate of 15%. The term of the loan…

A: For calculating exact interest, 365 days for normal year and 366 days for leap year will be taken as…

Q: Marcia Rodger borrowed $3,500 from Valley Bank at a rate of 9%. The date of the loan was October 10.…

A: In a case of borrowing, we need to find the interest using ordinary method and exact method. We then…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: finance charges refer to the fees or interest that a borrower pays to a lender for the use of credit…

Q: a. Calculate the loan’s annual financing cost. b. Calculate the loan’s annual percentage rate. c.…

A: Annual percentage rate (APR) refers to a real interest rate which an investor is expect from his…

Q: A Company borrowed money from a local bank. The note the company signed requires five annual…

A:

Q: Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10%…

A: The time to pay off the debt, the installment, beginning, and ending balances can be seen from the…

Q: Tom took out a $20,000 loan for 146 days and was charged simple interest. The total interest he paid…

A: The simple interest rate calculates interest based solely on the initial amount of a loan or…

Q: Michelle wants to borrow $4,500. Bank A will lend Michelle the money at a simple annual interest…

A: Formula: Interest amount = PTR / 100 P = Principal  T = Time period R = Rate of interest.

Q: Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest…

A: Here, Principal “P” is $900 Simple rate "r" is 7% Number of years “t” are 13

Q: Suppose Katy borrowed some amount of money for 98 weeks and Anastasia borrowed the same amount.…

A: Simple interest refers to the method of interest calculation where the principal amount remains…

Q: Before deciding to deposit her money at the credit union, Heather checked the interest rates at her…

A: Simple interest is calculated only on the initial principal amount throughout the investment or loan…

Q: A loan of $2700 collecting simple interest at a 7.9% annual rate was repaid with a check for…

A: Solution : Given Amount of loan $2700 Simple interest rate 7.9% Amount repaid…

Q: Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest…

A: The credit card information consists of the credit card number, expiration date, etc. The best thing…

Q: 9. Liam borrowed $12,500 for 5 months from a bank using a 2% discount note. a) How much interest did…

A: Loan Amount = $12,500 Time period = 5 months  Discount rate = 2%

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.