3 A teacher makes a one-time investment of $90000 in a retirement account for five years. The annual interest rate is 2.25%, compounded monthly. What will the final balance of the account be?

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: What is rent receivables listed as

A: rent is made by the tenant to the owner. different is paid generally on the monthly basis but there…

Q: What types of investments generate interest income and how is interest income reported?

A: Ans. Interest income is the earnings received in return of the amount deposited as investments.

Q: What is the Times-interest·earned ratio?

A: It is important to analyze whether a company has ability to pay off its debts. Means, it is…

Q: Which are the Elements of transactions Involving Interest?

A: The Answer:

Q: pact does time period hav

A: Annuities are the uniform periodic payment that are paid at the end of period or beginning of the…

Q: what types of investments generate interest income and how is interest income reported?

A: When a person makes an investment then that person will earn a return or an income on that…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: How do you accrue and calculate interest

A: interest calculation = principle amount * rate of interest    accrued interest is interest…

Q: When is it recommended to compute the effective interest rate per payment period?

A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…

Q: What does the Times Interest Earn ratio state? Provide an example

A: Times interest earned ratio tells about the ability of the company to pay it's obligations which is…

Q: When is the Times-Interest-Earned Ratio?

A: The TIE is a calculation of a firm's ability to reach its debt liability based on its current…

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.