A person’s credit score is important in determining the interest rate they have to pay on a home mortgage. According to Consumer Credit Counseling Service, a homeowner with a $100,000 mortgage and a 580 credit score will pay $90,325 more in interest charges over the life of a 30-year loan than a homeowner with the same mortgage and a credit score of 720. How much higher would the interest rate per year have to be in order to account for this much difference in interest charges, if the $100,000 loan is repaid in a single lump sum payment at the end of 30 years?

Q: Consider a uniform series of cash flows.  The first cash flow of $10,000 occurs at time 10 and the…

A: A cash flow is the movement of funds over a predetermined time period into or out of the financial…

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: Formula for the future value of annuity is given as:

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

A:

Q: What is the amount of interest earned on $5,000 for three years at 8% simpleinterest per year?

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A: To calculate the annual payment for a loan using a spreadsheet, use the PMT function in Microsoft…

Q: a 6410

A: Answer R = 6%

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

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A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…

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A:

Q: Marla would like to collect $195,000 to buy a house in 12 years. She thinks she can save money in a…

A: A B C D Yearly Deposit P n(years of CI) (1+r/100)^n A*C 9350.000 12 1.795856326 16791.25665…

Q: Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self-…

A: The net present value considers the entire cash flows in future whether positive or negative over…

Q: Suppose you start saving for retirement when you are 30 years old. You invest $5,000 the first year…

A: Cash Flow:Cash flow is the movement of funds over a certain time period into or out of a company's…

Q: At what simple interest rate must ₱100,000 be invested so as to gain an interest of ₱10,000 after 5…

A: We have given that  Total simple interest after 5 years =10,000 Deposited amount or principal amount…

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A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: The effective interest rate is 9.38%. If interest is compounded monthly, what is the nominal…

A: Monthly interest rate (i) can be calculated by using the following formula.

Q: Compute the number of years (t) if future value (FV) = $13514,  present value (FV) = $1186, and…

A: The formula for calculating the present value from the future value is :-  PV = FV / ( 1+i)t

Q: How much should you invest each month in order to have $700,000 if your rate of return is 3.6%…

A: A higher discount rate indicates a lower present value of the annuity while a lower discount rate…

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A: Karen borrowed an amount of P10,000 at simple interest rate 20% and interest was deducted before…

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A: * Annual interest rate = per month interest rate * 12 * Effective annual interest rate : Here we…

Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…

A: Given, Loan amount = 9,000  Time = 90 days  Interest rate = 5%

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: ou borrow $5,000.00 and repay it back in monthly payments of $200.00 for three years. What is the…

A: Borrowed Amount = 5000 Monthly Payment = 200 n = 3 years

Q: In one loan plan, the interest is reported as 36% compound monthly interest. Determine the effective…

A: Given for loan, The compound interest = 36%  To calculate the effective interest rate: effective…

Q: Assume that $150 invested a year ago will return $170 a year from now. What is the annual interest…

A: Present value(PV) is that value of an amount(A) of money that is worth today. It is less than the…

Q: A saving association pays 2% interest monthly. What is the effective annual rate of interest?

A: Effective annual interest rate = [1 + (i/n)]n - 1

Q: In order to make CDs look more attractive than they really are, some banks advertise that their…

A: Simple vs Compound InterestWhen money is deposited into an account at a simple interest rate,…

Q: Economics SHOW IN EXCEL NON EXCEL ANSWERS WILL RECEIVE DOWN VOTE A firm charges its credit customers…

A: Compound interest rates charge interest rates both on the principle and the interest that is…

Q: Tamara has a 20 year annuity due making monthly payments that increase by $485.03 each period. The…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: Formula for the future value of annuity is given as:

Q: If you borrow $ 30,000 at 6% simple interest per year for seven years, how much will you have to…

A: Simple Interest = (Principal * Rate * Time) / 100 ie SI = (P * R * T) / 100 Amount = Principal +…

Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…

A: We have given  (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…

Q: A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon…

A: The annual coupon payment = $75 The last coupon paid = 61 days ago Accrued interest =?

Q: Suppose that, to cover some of your college expenses, you are obtaining a personal loan form your…

A: The expense of getting can come in many structures. It is consistently to the greatest advantage of…

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: An annuity is defined as a series of payments which are of fixed amounts at fixed intervals.There…

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…