3. A man invests R2500.00 at a compound interest rate of 8% per annum. If at the end of the year, he does not take away the interest, use the table to fill in the amounts he would reinvest at the beginning of each year. Year Principal (P) 8% R2500.00 3 4 Total at the end of 4 years R

Q: Suppose you borrowed $80,000 at a rate of 8.5% and must repay it in 5 equal installments at the end…

A: Given data; borrowed amount = $ 80,000 rate of interest = 8.5% number of payments = 5   First we…

Q: Q2): A person deposits $28,500 into a savings account that earns 5% interest per year. At the end of…

A: Given That: deposited money(P)= $28500 Interest rate (r)=5%=0.05 per year Amount wants to be…

Q: 2.43 You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will…

A: The tenure of the loan means the duration for which loan has been taken. If loan tenure is more than…

Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…

A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…

Q: Bobby Nelson, made deposits of $880 at the end of each year for 6 years. Interest is 6% compounded…

A: The value of Bobby’s annuity at the end of 6 years can be calculated using FV function in excel. FV…

Q: 3.Assume that you deposit $9,000 at a compound interest rate of 8% for 5 years. Please calculate how…

A: Deposit amount (D) = $9000 r = 8% n = 2 years

Q: 15. At the beginning of each of 7 years $500 was deposited on the account. At the end of each year…

A: Hence, the PMTs of $500 will be valued at $4,629.9013 at 7 years.

Q: How much can be accumulated for retirement if OMR2,000 is deposited annually, beginning one year…

A: Excel Spreadsheet:

Q: A) When you retire, you move $300,000 into an account that pays nominal interest of 4%, compounded…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1.1. Miss X deposited R5000 in a saving account paying 3% Interest compounded daily. Find Future…

A: In daily compounding interest is calculated daily on principal and interest earned on the previous…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Data given: Principal: $6500Rate: 7%Compounded: quarterlyTime: 4 years

Q: 25. Y deposits P 50,000 in a bank compounded annually at 10% interest, how much is the future value…

A: The amount deposited in the bank = P 50000 I= Interest = 10% compounding annually n = period = 2…

Q: .Consider a $10,000 loan to be repaid in equal installments at the end of each of the next 5 years.…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

A: Future value refers to the value of the current asset at some future date affected by interest…

Q: If you invest $40,000 at 4% interest compounded annualy, approximately how much money will be in the…

A: PV=$40,000r=0.04n=6FV=?

Q: Example 1: Finding Future Value A person deposits $5000 into an account which pays interest at a…

A: Present value interest factor for 10 years = (1 + Rate )Number of years  = (1+ 0.08)10 = 2.158924

Q: SAVINGS ACCOUNTS If Jackson deposits $100 at the end of each month in a savings account earning…

A: We here need to use future value of ordinary annuity(payment due at end) formula for calculation of…

Q: Dave deposits $1500 at the end of every 6 months into his RRSP. He intends to make the deposits for…

A: The (FV) is a concept of time value which assists in representing an investment at a particular time…

Q: Investing: Lesser-Known Stocks The following question is based on the following information about…

A: Investing in stock involves purchasing ownership in a company represented by shares or stocks. As a…

Q: Suppose you borrowed $37,000 at a rate of 9.0% and must repay it in 4 equal installments at the end…

A:

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: You borrowed $5,000 at 7% compounded annually. Your payments are $1,219.45 at the end of each year.…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: Suppose you borrowed $45,000 at a rate of 8.4% and must repay it in 5 equal installments at the end…

A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: terest-on-Interest Consider a $2,100 deposit earning 7 percent interest per year for 6 years. How…

A: solution:  Consider a $2,100 deposit earning 7 percent interest per year for 6 years. How much total…

Q: 2) If you deposit $3 account balance How many yea

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

Q: Suppose you borrowed $50,000 at a rate of 8.1% and must repay it in 5 equal installments at the end…

A: Given ,Loan amount , Annual rate , r = 8.1% = 0.081Annual rate , r = 8.1% = 0.081number of…

Q: Assume that you deposit $1,000 in an account earning 5% simple interest for 3 years. What is the…

A: Given: Deposit = $1,000 Interest rate = 5% Years = 3

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: b. You have a $20,000 note payable which is due in three years. How much money must you put into a…

A: Solution d: N = 1 PV (Future value of at the end of 3 years) = $20,000 Interest rate (I) = 3%

Q: te.4 If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5%…

A: The objective of the question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…

A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?

Q: 1. A man invests $4000 for 5 years at 4.2% compounded monthly. A. How much will be in the account at…

A: Amount of investment = $4000 Interest Rate =4.2% per annum Interest Rate monthly (r) = 4.2%/12 =…

Q: 7) a. b. C. d. How much more is a perpetuity of $8,000 worth than an annuity of the same amount for…

A: Annuity is a series of payments made at equal intervals of time. Perpetuity is an annuity having…

Q: 1.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Mark Welsch deposits $7,300 in an account that earns Interest at an annual rate of 8%, compounded…

A: Compound = Quarterly = 4Present Value = pv = $7300Interest rate = r = 8 / 4 = 2%Time = t = 1 * 4 = 4

Q: PART 1. COMPOUND INTEREST a. Accumulate 15,000 for 10 years at 7% compounded. Quarterly and…

A: a) Given that: Principal = 15,000 Rate = 7% Period = 10 years  Compound interest = Compound Amount -…

Q: . If you were to deposit $399.27 into an account today that pays 8% interest annually, with a…

A: Present Value = pv = $399.27Interest Rate = rate = 8%Payment = pmt = $100Time = nper = 5 Years

Q: You are investing the following amounts at the end of each of the following three years.  How much…

A: Year 1 Amount (C1) = $2,000 Year 2 Amount (C2) = $4,000 Year 3 Amount (C3) = $6,000 r = Return i.e.…

Q: Abdullah deposits OMR 28202 at the end of every year for 4 years and the deposit earns a compound…

A: Given: Annual deposit = OMR 28,202 Years = 4 Interest rate = 3%

Q: Suppose you borrowed $15.000 at a rate of 11.1% and must repay it in 5 equal installments at the end…

A: Interest is the amount given by the borrower of money to the lender of money. Interest is usually…

Q: Suppose you borrowed $35,000 at a rate of 8.1% and must repay it in 4 equal installments at the end…

A: Loan amount (LV) = $35000 Interest rate (i) = 8.1% Number of annual payments (n) = 4

Q: loan of X is repaid with level annual payments at the end of each year for 10 years. You are given:…

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

Q: Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year…

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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.