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 $2,000 for five years at 10% simple interest per year?

A: here we calculate the interest earned by simple interest so the calculation as follow-

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…

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

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

Q: Consider a geometric series of cash flows that begins at time 12 with a cash flow of $10,000. Cash…

A: Given  Geometric series cash flow begins at time 12 and with a cash flow of $10,000 and there are 11…

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: How can we compute the effective interest rate for any duration of time?

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: An investor (owner) has an option to purchase a tract of land that will be worth $20,000 in ten…

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

Q: The present value of $20,000 each year for 4 years at a 5% interest rate is approximately The…

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

Q: Note the cash flow series in the graph. The amounts of 5,000 at years 2 and 4 and X are inflows to…

A: Cash inflow at year 2=$5000Cash inflow at year 4=$5000Cash inflow at year 6=XX=$6000Year=6 yearsr=2%

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…

Q: Karen loaned P10,000 from a firm with a simple interest of 20%. The interest was deducted right away…

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

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: 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: 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: Someone deposits $3,500 in their retirement account every year. If their account pays an average of…

A: Given data Some one deposits = $ 3500 Intrest rate = 6% FV of her deposit = PV of her 20…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Given: Annual interest rate = 7% Interest is compounded semi-annually. Hence, i (rate per period) =…

Q: car loan at an interest rate of 9% compounded monthly to be repaid over 60 months, where 9% is the…

A:

Q: I invested $5000 and earned $300 in interest in 9 years. What was the interest rate r if interest…

A: Continuous compounding is the numerical furthest reaches that accruing funds can reach if it's…