A man owes Php 12,000 today and agrees to discharge the debt by equal payments at the beginning of each 3 months for 8 years, where these payments include all interest at 8% payable quarterly. Find the quarterly payment.

Q: Abdullah deposits OMR 23550 at the end of every year for 4 years and the deposit earns a compound…

A: Individuals save for the future using various financial instruments that provide returns as per…

Q: Rhea has to pay a loan by making 12 bimonthly (at the end of every 2 months) payments of P15,000 to…

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Q: Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of Year 3 in the…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…

A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…

Q: how much does he need to pay quarterly?

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity due…

Q: Joshua borrowed P250,000.00 with interest at the rate of 5% compounded semi-annually. He agrees to…

A: Interest rate = 5% (Assumed for every 6 month) Loan amount = P250,000   Calculation of loan amount…

Q: Nicole loans P900,000 from bank today which gives her 10% interest rate compounded annually. Based…

A: Loan amount (L) = P 900000 r = 10% n = 10 payments Let the annual payment = A

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: When the payment is received at the beginning of a period it is called as annuity due. In the given…

Q: man deposit P 1,000 at the end of each month for 3 years at nominal rate 12% compounded monthly.…

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Q: Suppose you are a beneficiary designated to immediately receive ₱9201 each year for 7 years, earning…

A: in the given question the first payment will be received today. therefore, future value can be…

Q: John already has $55,600 today in his savings account earning 5.5% compounded semiannually. The…

A: Here,

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: A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the balance on monthly…

A: Given: Particulars Amount Down payment            200,000 Down payment rate 10% Monthly…

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: Joyce pays P 2,000 every two months to settle his obligations for two years at 8% compounded…

A: Bimonthly payment (B) = P 2000 r = 8% compounded bimonthly = 8%/6 bimonthly = 1.3333% n = 2 years =…

Q: Cristina borrowed P50,000.00 from Social Security System in the form of calamity loan, with interest…

A: Annuity referes to a series of regular payments being made over a period. If the payments are made…

Q: Ms. Aay is considering to deposit $600 every six months, and would receive interest at an annual…

A: In the given question, semi-annual deposits of $ 600 are made for next 5 years, wherein first…

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: A businessman borrowed P320,000 with interest at the rate of 4.9% compounded semi-annually. He…

A:

Q: A risky $ 1,000 investment is expected to generate the following cash flows: Year…

A: NPV: It is the net current worth of cash flows that are expected to occur in the future. It is…

Q: James borrows $280 000 and repays the loan in equal fortnightly repayments of $1250 over 20 years.…

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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: You invest $2,300 in a 4-year certificate of deposit (CD) that pays 3.2% interest, compounded…

A: In this question we need to compute the future value at the end of year 4.

Q: How much in each of the quarterly installments if rate of interest 10% compounded bi-monthly?

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Akbar has borrowed $48,000 today and agreed to repay it in 5 years with monthly payments at the…

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

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

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Q: You own $35000 from the bank for 3 years at 8.50% annual interest, and you will make equal monthly…

A: Solved using Financial Calculator  PV = 35,000 N = 3years * 12 = 36 I/Y = 8.5/12 = 0.708333 CPT PMT…

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: Miss A wants to have P35436 for 2.1 years starting today which is to be used for research. If she…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: Cristina borrowed P50,000.00 from Social Security System in the form of calamity loan, with interest…

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Q: Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2…

A: We need to use present value formula to calculate required deposit now. The equation is PV =FV(1+i)n…

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.