4. Mr. Torres borrows P 150,000 and agrees to pay it with interest at 16 % compounded quarterly installments of P 10,000 each as long as necessary. If the first payment is due 3 months after borrowing the money, how long will it take for him to settle his debt?

Q: An interest rate of 10% compounded monthly is given, compute for the interest rate per period? O…

A: The periodic rate equals the annual interest rate divided by the number of periods

Q: Sam agrees to pay an amount of 2X at the end of 5 years and an amount of X at the end of 7 years. In…

A: The question is based on the concept of future value and present value of fund received at different…

Q: Mr. Sabalbaro borrows P600, 000 at 12% compounded annually, agreeing to repay the loan in 15 equal…

A: Annuity: It is the payment plan where one can get a regular amount of money after making the lump…

Q: 3. Ruby Red borrowed $7500 for the diner at 8.1% compounded monthly. She agreed to repay the loan in…

A: The loan amount is $7,500. The annual interest rate is 8.1%. The payments compounded monthly. The…

Q: A person takes a loan of 200 at 5 % simple interest. He returns 100 at the end of 1 year. In order…

A: Simple interest does not consider the compounding effect.

Q: Suresh buys a house for $794,357.30 with a down payment of $72,214.30 and a mortgage for the…

A: Amortization is the period of repayment of the loan. It is the period in which you repay your loan.…

Q: b) A man borrowed GH¢164,000 from a bank to help finance the purchase of a store. The bank charges…

A: Interest is the cost of borrowing money. It can be simple or compounded.

Q: Mr. Cee wishes to borrow $12,000 for three years. A group of individuals agrees to lend him this…

A: Amount borrowed (P) = $12000 Final amount to be paid (F) = $18000 n = 3 years Let r = Annual…

Q: randon Rockwell owes P200,000.00 with interest at 5% payable semi-annually. What equal payments at…

A: Solution Given Amount due 200000 Interest rate 5% Compounding Semi annual…

Q: 3. Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly…

A: Bonds are a representation of a promise to pay interest, typically every two years, and to repay the…

Q: To discharge a debt, with the interest of 7% compounded monthly, Mark agrees to pay P500 at the…

A: Monthly payment  = P500 Period = 6  Years Number of monthly payments = 6*12 = 72 Annual interest…

Q: O a. $1,054,602.46 b. $1,044,056.44 c. $970,234.27 d. $1,022,964.39 O e. $991,326.31

A: First, we need to calculate the bi-weekly payment amount. We know the mortgage amount, the interest…

Q: A woman borrowed P3, 000, 000 to be paid after 1.5 years with interest at 12% compounded…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Steven Riley is borrowing $9,000 for 5 years at 8 percent. Payments are made on a monthly basis,…

A: Loan repayment refers to the process of returning borrowed funds, typically from a lender or…

Q: How much of the original principal is still unpaid after he has made the 8th payment?

A: Get the annuity first using P = 600000,i =12%= 0.12 , n = 15 P= A*(1-(1+i)^-n)/i…

Q: To discharge a debt, with the interest of 7% compounded monthly, Mark agrees to pay P500 at the…

A: The Present Value of Annuity Due is the present value of a series of cash payments that are expected…

Q: a) Peter wishes to purchase a motor vehicle from a dealer in Johannesburg for R150 000. His bank,…

A: We will use excel function 'PMT' to find the monthly payment for the loan. as shown in the above…

Q: Tom Bond borrowed $6,200 at 6-% for three years compounded annually. What is the compound amount of…

A: Compound amount = Principal(1 + Rate/100)t Interest = Compound amount - Principal

Q: Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem. 1. Coco…

A: Amortization schedule refers to the amount including the principal and interest payments made for…

Q: Question: Robert is repaying a debt with 19 annual end-of-the-year payments of $1,000 each. At the…

A: Step 1: Calculating a Loan Refinance AmountGiven a loan that is being repaid with regular, equal…

Q: On October 31, 2019, Strongman Samson borrowed P100,000.00 from Pretty Delilah subject to an…

A: The simple rate of interest means the interest amount is determined by the principal amount. The…

Q: years ses to pay Ph How much is the payment on the fourth year if money is worth 16% compounded…

A: In this we need to calculate the present value of all and than calculate the required amount.

Q: Mr. Cee wishes to borrow $10,000 for three vears. A group of individuals agrees to lend him this…

A: We will solve this problem by using present value formula.  Present value = Future value / (1 +…

Q: Regine agrees to settle a P100,000 loan borrowed from provident by making monthly salary deduction…

A: Present value of annuity Annuity is a series of equal payment at equal interval over a specified…

Q: G borrows P47,400 with interest at 18% compounded quarterly. How much should he pay to the creditor…

A: Use the Excel FV function with the following inputs to determine the value of investment. RATE =…

Q: Raquel will settle her debt my making quarterly payments of P5,800 for 3 years and 6 months but the…

A: Quarterly payment = P 5800 Period = 3.50 Years Number of quarterly payments = 3.5*4 = 14 Annual…

Q: Number of payments. Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is…

A: The loan amount is equal to the present value of the annual repayments made over the period of the…

Q: Kevin received a $1800 bonus. He decided to invest it in a 3-year certificate of deposit (CD) with…

A: In the given question we require to calculate the future value of investment after 3 years and…

Q: Zoey signs a note to repay $10,000.00 plus 8% interest in 1 year. Four months before the note is…

A: Zoey'took debt for a value of $10,000 which he needs to repay with 8% interest. Here, we need to…

Q: Oliver owes GH¢500 due in 4 months and GH¢700 due in 9 months. What single payment (i) now, (ii) in…

A: The present value of the amount will be considered on the basis of future value discounting over the…

Q: In purchasing a house, Keith agrees to pay $10,000 cash and $5,000 at the end of each 6 months for…

A: Present value of money is the value which is calculated by multiplying the future value by the…

Q: On October 31, 2019, Strongman Samson borrowed P100,000.00 from Pretty Delilah subject to an…

A: The FV of an asset refers to its value at a predetermined point in the future and an assumed rate of…

Q: Tom takes out a loan for $15,000 at an APR of 6% to start out his business. He promises to make…

A: GIVEN, P=$15,000 R=6% M=4 N =10 YEARS

Q: Ryan must pay off a loan of $4,000 in 3 years. Use the appropriate formula to find the amortization…

A: Amortization: When the debt is paid off in regular installments and principal of loan is repaid till…

Q: 3. Mr. Ramirez borrowed P150,000 to be amortized in 2 years by monthly equal payments. If Mr.…

A: Amount Borrowed = P150,000 Years = 2 Terms (n) = 2*12 = 24 rate of interest (r)=12%/12 = 1% per…

Q: Daiki Aomine owes a debt to a lending company of P50,000.00 due in 2 year and another P55,000.00 in…

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.