5. Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest? А. 3.6 В. 6 18 D. Cannot be determined E. None of these C.

Q: 3. Miss Aisha deposited RO 5000 in a fixed deposit at 5 % interest compounded semi-annually for 5…

A: Amount deposited now = RO 5000 Interest Rate(r1) = 5% compounded Semiannually = 5% /2 = 2.5% Years =…

Q: 13. A loan of 40,000 with interest at 6% payable semiannually is to be amortized by equal payments…

A: The periodic payment for loan is an ordinary annuity where loan amount of of 40,000 is present value…

Q: Mason took a $66,000 loan at 2.55% compounded monthly and decided to make end of month payments of…

A: No of Payments = nper = ?Loan = PV = $66,000Interest rate = rate = 2.55% per year = 2.55/12 =…

Q: If a borrower repays RM 11430 at the end of two years, which includes RM 2430 interest at a rate of…

A: Repayment amount = RM 11430 Interest amount = RM 2430 Interest rate = 13.5%

Q: A loan is to be repaid with n level payments of X, where n> 5. The amount of interest in the 1st,…

A: Let the principal in payment 1, 3 and 5 be P1, P3 and P5. Since, the principal repaid, X-interest,…

Q: 24. Rhonda Lee deposited $2.000 in a savigns accoutn that earns 5% interest compounded quarterly.…

A: Here in this question, we are required to calculate the interest income amount and ending balance of…

Q: your Sisler borrows $1,000 and evmpleyte promises to $ 2,000. 4 you wanl to atlea5r a 5to an you…

A: A = P 1+r100n Where  A = Amount P = Principal r = Rate of interest n = Number of years

Q: An investor received a promissory note for $120,000 at an interest rate of 8% on July 15 with…

A: Value of Promissory Note is $120,000 Interest Rate is 8% Issued Date is July 15 Maturity Period is…

Q: Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. FV of…

A: Time value of money is a concept where interest component for time period is considered. Time value…

Q: 4. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum…

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

Q: Nina takes a fixed-rate, 30-year loan with a monthly payment of $1,300.00. The amount financed was…

A: Given,  Monthly Payment = $1300 Year = 30 years Amount Financed = $180000

Q: 9. Which two of the following statements is FALSE (CHOOSE TWO) a. In an ordinary annuity, payments…

A: Annunity:- An annunity is an series of equal payments made at equal interval of time for example,…

Q: Thahir has availed for housing loan alone as his debt, the bank has accepted his application with…

A: 28/36 rule state that the monthly housing expenses and monthly debt obligations as % of total…

Q: (Loan amortization) On December​ 31, Beth Klemkosky bought a yacht for ​$70, 000. She paid ​$14, 000…

A: An amortized loan is a classic case of the PV of an ordinary annuity.The loan taken today [ PV] and…

Q: Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates…

A: By rearranging a FV formula, we can determine the implied interest rate. FV formula is as below:…

Q: The sale of a Georgia home closes on March 15th. If the seller owes $45,300 on a mortgage against…

A: As we know that the Formula for Simple Interest = (Principle x Rate x Time) / 100   If the…

Q: Suppose Katy borrowed some amount of money for 98 weeks and Anastasia borrowed the same amount.…

A: In simple interest there is interest on the principal amount of loan only and there is no interest…

Q: Estimate the compound interest along with principal payable in second year when amount of loan is…

A: Given values : Principal = $ 10000 Interest rate = 8 % Time period = 2 years Compound interest.

Q: what is the value of Ahmed's investment in Subaccount A now? at is the value of Ah

A: Given in the question:Amount invested into Subaccount A = $5,000Unit Value at time of deposit =…

Q: A borrower takes out a 15-year mortgage loan for $250,000 with an interest rate of 8%. The loan is…

A: The outstanding loan balance for a mortgage loan is computed by adding the accrued interest to the…

Q: How much amount should an investor deposit in an account earning a continuously compounded interest…

A: Time Value of Money states that a dollar today is worth more than anytime in the future. This is…

Q: 6. David borrowed P^(5),000 from a bank at a rate of 7% per annum compounded annually. Which of the…

A: We need to use compound interest formula below to calculate amount to be paid after certain year. A…

Q: 1. How do we compute the effective annual interest rate? 2. Will the effective annual rate increase…

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

Q: 6. From a borrower's perspective, interest if the fee paid on an amount of money, whether loaned or…

A: The questions are related to True or False. This is due to interest and fees, which is what a lender…

Q: Henry Taylor is settling a $19,570 loan due today by making 6 equal annual payments of $4,625.89.…

A: Promissory notes are another name for notes payable. In this case, the borrower guarantees the…

Q: Which of the 3-5 year notes might be considered cheap?   Group of answer choices O. HON 3.25…

A: The yield is the annual interest payment that a bondholder will receive, expressed as a percentage…

Q: Julia Roberts deposits 4600 dollars in an account paying an effective rate of interest of 5.2…

A: Simple Interest formula is  Amount = Principal + (Principal*rate*time)

Q: am. 101.

A: Initial loan (outflow) = $3000 at time t=0Repayments (inflows) = $1000 for four yearsThe present…

Q: NOTES The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man…

A: Using excel PMT function to calculate each payment

Q: F. An initial deposit placed into a crypto-account that accrues interest was compounded…

A: The future value of money includes the money deposited and the interest accumulated over the period…

Q: Kimmy took a loan of RM30,000 from a bank. The loan was settled in 72 monthly payments. The bank…

A: An annuity is a series of equivalent periodic cash flows for a specific time duration. The term…

Q: Barry has applied for a loan in the amount of $10,500. A bank figures that Barry will repay the loan…

A: Interest rate refers to the amount of money which the lender charges to the borrower as well as it…

Q: 9. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: 4. Peter has a debt of DKK 5,000, which he must pay off by DKK 862.74 each month. He pays 1%…

A: Amortization schedule refers to the presentation of complete loan payments over the life of the loan…

Q: 3. Mr. Econ borrowed money from the bank last January 16, 2005. He receives from the bank P…

A: We can define discount rate as that rate at which if the future value is discounted then it will be…

Q: (4) a. At what rate of simple interest will 500 accumulate to 615 in 2.5 years? b. In how many years…

A: Simple interest The method that calculates interest only over the actual amount of money borrowed is…

Q: Doreen Short was looking over the repayment schedule for a loan of $37,858 at 7% interest for 5…

A: Repayment schedule:Repayment schedules provide as a financial road map for both lenders and…

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.