(4-88) Pete borrows $15,000 to purchase a used car. He must repay the loan in 36 equal end-of-period monthly payments. Interest is calculated at 1%% per month. Determine the following: a) The amount of the monthly payment b) The nominal annual interest rate c) The effective annual interest rate

Q: Describe about the LIFO and FIFO method.

A:

Q: Show how to insert formula in excel

A: Perpetuity: It is a stream of cash flow that is presumed to continue for an indefinite period.

Q: Define Reconciliation method

A: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from…

Q: Define NRV method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Explain an example of internal users.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Which function in excel did you use

A: The concept of time value of money will be used here. The amount needed today will be the sum of…

Q: Identify the following users as either an internal (I) or an external (E) user. Distribution manager

A: Users of the information: Users of information can be classified as internal and external users.…

Q: What do the relational features restrict, project, and join mean?

A: Database Management: Database management refers to management of databases held within an…

Q: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2) for…

A:

Q: What is the client-server model?

A: Client Server model: A client-server model can be defined as the architecture of distributed…

Q: Define embedded options

A: Embedded options are considered to be very much beneficial for both individuals as investors &…

Q: Define call protection

A: A financial instrument that does not affect the ownership of the common shareholders or management…

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.