17. Gloria is saving $4,000 in a savings account that earns an interest rate of 3.1% compounded annually. Which equation should Gloria use to determine how much money will be in her account after 5 years? A. APY = (1+)" – 1 D. F = P(1+r·t) B. APY = e" – 1 E. F= Pe(rt) (n-t) C. F = P(1+=)

Q: Mason took a $66,000 loan at 2.55% compounded monthly and decided to make end of month payments of…

A: No of Payments = nper = ?Loan = PV = $66,000Interest rate = rate = 2.55% per year = 2.55/12 =…

Q: 10. Kristine has $5,000 in an account today that pays 3% interest rate. Two years from now she…

A: Note: As per the Bartleby guidelines, we can answer only the first question. Kindly post the…

Q: Eva opened a savings account with an initial deposit of $897. They then deposit $897 into that…

A: We need to use future value of annuity formula to calculate saving balance after 8 years. B(t)…

Q: You deposit $725 today in a savings account that pays 6% interest, compounded annually. How much…

A: Future value, or FV for short, is a term used in finance to describe the estimated monetary value of…

Q: 4. a. Now assuming that a bank offers you a 30-year loan at 3.25% compounded monthly to pay the…

A: Mortgage means the amount which is borrowed from external sources like banks. This amount is repaid…

Q: Question 1: part i) : How much Julie Miller would have after 5 years if she deposited $20,000 today…

A: Part (i) Given Information: Present value is $20,000 Invested for five year at rate of 5%

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: 2. Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Annual payment (P) = Php 40,000 Number of annual payments (n) = 10 Interest rate (r) = 9%

Q: QUESTION 1 A man buys a house for $360,000 He makes a $150.000 down payment and amortizes the rest…

A: It is a case where a house is purchased using a downpayment as well as a loan is taken up to cover…

Q: How long will it take $47,000 placed in a savings account at 10% interest to grow into $72,000? OA.…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: Answer the following time value of money questions assuming the interest rate is 5 percent. a. What…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Suppose that you deposited $1000 in your savings account that earns 10% annual interest. How much…

A: Present Value in account = $1000 Annual interest rate = 10%  Time period = 3 years

Q: Appa deposits $4000 in an account earning 2.9% interest compounded monthly. How much will Appa have…

A: Nominal rate 2.90% Compounding Monthly Effective annual rate ((1+2.9%/12)^12)-1) Effective…

Q: 7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying…

A: Introduction: Future value can be referred to as the value of an underlying asset or security at a…

Q: If Bob and Judy combine their savings of $1,500 and $700, respectively, and deposit this amount into…

A: Saving of Bob = $1,500Saving of Judy = $700Total Savings / Principal (P) = $1,500 + $700 =…

Q: Question 3 of 3: If you borrow $2,000 with 5% interest compounded annually, how much total interest…

A: To find the total interest paid on a $2,000 loan with 5% interest compounded annually over 2 years,…

Q: Boris wants to save $93,000.00 for retirement. He already has $5,580.00, and he will make bi-weekly…

A: Required amount for retirement(FV)  $ 93,000.00 Current amount in account(PV)  $   5,580.00 Time…

Q: H3. Margo borrows $700, agreeing to pay it back with 5% annual interest after 13 months. How much…

A: Interest is the amount of profit earned by the lender for the amount borrowed and this is the…

Q: 28) 7.25% comp: monthly: if $1,000 is deposited into mouthly, how much is in acct. after Is years?…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Jasmine deposits 1000 into a savings account paying nominal interest rate of 6 percent compounded…

A: Here,Deposit Amount (PMT) is $1,000Nominal Interest Rate (r) is 6%Time Period (n) is 20…

Q: If you borrow $3,600 to buy a car at 15% per year compounded monthly, to be repaid over the next…

A: Monthly Payment = P x r / [1 - {1 / (1 + r)^n}] Here, P = Present Value or Loan Amount i.e. $3600 r…

Q: You just closed a new loan on his 10-unit apartment as follows: Initial loan amount, $2,000,000,…

A: To calculate the monthly payment for this loan, we need to use the loan amount, interest rate, term,…

Q: Luis Rivera has taken out a mortgage loan for $225,000 at 4% for 5 years. What will be the total…

A: A mortgage is a type of loan that is typically used to purchase real estate, such as a house or a…

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.