22. Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? GH¢ 4,201.16 b: GH¢ 4,299.88 c. GH¢ 4,509.19 d. GH¢ 4,608.87 e. GH¢ 4,800.00 a.

Q: Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn…

A: Monthly Deposit(P) = 100 Discount Rate(r) = 5.5%/12 =0.458333% = 0.004583% Years =4 Terms(n) = 4*12…

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A: Answer Borrowing amount = $3,600 Interest rate = 12% per year  Interest rate monthly = 1%  Time…

Q: f. To help you reach your $1,000 goal, your father offers to give you $400 in one year. You will get…

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A: Given Cost of home is $150,000 APR is 8%Loan period is 360 Payment is $1,100.65

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A: The question is based on the concept of Financial Management.

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A: An annuity is a series of payments for a specific period. There are two types of annuities. One is a…

Q: 37. Savings Gabriel Branson invested his summer earnings of $3000 in a savings account for college.…

A: Simple Interest = Principal × Interest Rate × TimeHere,Principal = $3,000Interest Rate = 1.5% or…

Q: Bradley Snap has deposited $7 000 in a guaranteed investment account with a promised rate of 6%…

A: concept. Future value = A ( 1+r )n where , A= amount deposited r= interest rate n= time period.

Q: 8Assume that the cost of a college education will be $20,000 per year when your child enters college…

A: Annual cost = $20,000Number of years in college = 4 years Number of years =12 yearsCollege expenses…

Q: I purchase a BMW for $70,000. If I receive a trade in allowance of $5,000 for my old car. what will…

A: Given: Purchase price of BMW = $70000 Old car trade = $5000

Q: Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,200.00…

A: The time value of money concept will be used and applied here. As per the time value of money…

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A: The future value of deposit includes the amount being deposited and amount of interest being…

Q: Ever since your first birthday, your parents have been depositing $1,000 into a college savings…

A: Annual deposit (P) = $1,000 Number of annual deposits (n)  = 18 Interest rate (r) = 7%

Q: When you graduate from college, your mother plans to give you a gift of $40,000 to start you on your…

A: Present value of lum sum = Amount receivable in future * PV $1 (r, n) Present value of annual…

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A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: 21. A friend lends you P500 for a year with 3% interest. How much interest will your friend earn?

A: Interest can be computed using the formula given below. Interest = Principle x Rate x Time

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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…

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A:

Q: 2. Upon graduating BBA, in one year

A: The present worth in both the cases can be computed as follows : Option 1 : Results obtained :…

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.