A principal of $12, 000 is 3/5th itself invested at \times % interest rate for 5 years. If the same principal was invested for 2 years at an annual compound interest rate of (x+4) %. The interest return amount in dollars equalsO a. $ 4, 147.20 b. $4, 292.30 c. $4,219.80 d. $4,890.4

Q: If $5 000.00 is placed on account for 6 years and earns interest at 12% p.a. compounded monthly, it…

A: The future value is the future amount along with interest. The present value is the current…

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A: A Continuous Compounded Interest rate is the interest rate that is calculated on the principal…

Q: Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded…

A: A=P+193.03 r- 0.021 t=2 years Since A=Pert Therefore, P+193.03= Pe 0.21*2 P+193.03/P= e0.042…

Q: a. How long will it take an investment to double in value if the interest rate is 3% compounded…

A: Here, Present value (PV) = 1 Future value (FV) = 2 Interest rate = 3% No. of compounding periods =…

Q: Mr Y invested R2000 in a bank for 7 years. The interest rate was 5% compounded weekly for the first…

A: Investment        R 2,000.00 Time Period 7 Interest Rate for 2 Years 5% Interest Rate for 3…

Q: Task 2. Compute the future value of the following single investments: 1. P20,000 at 8% interest…

A: Compound interest: It is  the interest on a loan or deposit  Compound interest   is calculated based…

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A: Simple interest is the method that is used in calculating the percentage of interest paid on a sum…

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (…

A: The above answer can be explained as under - Given,Principal = $ 24,000Number of years = 18%Rate per…

Q: complete the following: t time 0 is equivalent to: ($ at the end of year 7 at 6% interest rate ($ at…

A: In this we have to calculate the future value of today money with given interest rate.

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Q: Carey Company is borrowing $375,000 for one year at 12.5 percent from Second Intrastate Bank. The…

A: The effective rate is the nominal rate after making adjustments for the frequency of interest in a…

Q: 006's 7,075 6% 0.943 0.890 0.840 0.792 10% 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636

A: Amount received = $25,000 Interest rate = 10% Time period = 4 Years

Q: For the following investments, compute the amount of compound interest earned in and the annual…

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Q: IV. An account earning 6.6% interest compounded continuously for 10 years would have a balance of…

A: Interest is an additional payment which is received over the amount deposited for a period. At…

Q: a person borrowed $7,500 at 12% nominal interest compounded quarterly. What is the total amount to…

A: Answer Borrowing amount = $7,500 Interest rate = 12% Compounding Quarterly

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A: The objective of the question is to calculate the size of the quarterly payments, total amount paid…

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Q: The maturity value of a savings account that belonged to Peach Company was $44,418.50. The interest…

A: PRESENT VALUE   Present value, also known as Present Discounts value, is the value of an expected…

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A: $3,225 is received one year from today and we have to determine its value four years from today. So,…

Q: 13. Adams Corp's sales last year were $57,000, and its total assets were $24,000. What was its total…

A: given net sales = 57000

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A: Future value:Future value (FV) is the idea of how much an investment will be valued at a certain…

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Q: 7. .For each situation, determine i).the amount ii) the interest earned a) $ 15000 borrowed for 6…

A: Time value of money is one of useful technique used in finance. This says that amount invested today…

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

Q: 4. Find the maturity value of a $15, 000 investment with an interest rate of 6%, compounded…

A: Maturity value refers to an amount that is to be accumulated at the end of investment period by…

Q: $3300 8% compounded quarterly $1200 1 4 5 6 7 8 Quarters

A: a) Effective rate can be computed in excel as follows: Answer would be:

Q: Assuming a 14% interest rate, which of the following is closest to the total present value of the fo…

A: PRESENT VALUE Present Value is the Current Value of Future Cash Flow at a Discounting Rate. Present…

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.