A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $85,000.00 for 29 years at 6.5% compounded monthly, and will make monthly payments of $543.33. (Round all answers to 2 decimal places.) What is the unpaid balance after 15 months? $ During this time period, how much interest did she pay? $

Q: Tracy wants to have $400,000 when she retires in 40 years' time. How much should she deposit at the…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: To start a new business Beth deposits $1000 at the end of each six-month period in an account that…

A: Semi annual deposit (P) = $1000 Interest rate = 7% Semi annual interest rate (r) = 7%/2 = 3.50%…

Q: A woman buys a house for a ​$260,000. She pays ​$20,000 down and takes out a mortgage at 5.1​% for…

A: Purchase Price of House = pp = $260,000Down Payment = dp = $20,000Compound = Monthly = 12Interest…

Q: A couple has decided to purchase a $90000 house using a down payment of $18000. They can amortize…

A: Amortization is a strategy used in accounting to reduce the book value of a loan or intangible asset…

Q: An engineer plans to borrow $100,000 to open his own consulting business. He must repay $2,150 a…

A: using financial calculator, N = 5*12 =60 PMT = -2150 PV= 100,000 FV = 0

Q: Please show all equations and work as needed. If possible, please type the work so that it may be…

A: The computation of cost of trade credit is as follows:Here,3/5 net represents 3% discount is…

Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…

A: Present value = pv =$84,000 Total Installments =28*12 = 336 months Interest rate = r = 5.7/12 =…

Q: n order to accumulate enough money for a down payment on a house, a couple deposits $769 per month…

A: using excel PV and FV function   =PV(rate,nper,pmt,[fv])  =FV(rate,nper,pmt,[pv]) Where, rate = rate…

Q: ane needs $30,000  to buy a new car in four years. How much should she deposit at the endof each…

A: We will use the concept of time value of money here. The concept of time value of money states that…

Q: PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 1.-  Osmara Del Toro deposits her life…

A: Compound interest is a method of interest calculation where the interest earned is reinvested…

Q: If Laura invests $1,230.00 in an account earning 2.95% simple interest, how much money will be her…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: wise mechanical engineering graduate began saving money for early retirement by depositing $1300 per…

A: Future Value refers to the compounded value of future cash flows at a specified interest rate.

Q: Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning…

A: Simple interest = Principal * interest * time Amount = Principal + simple interest Amount =…

Q: Find their regular monthly payment. (Round your answer to the nearest cent.) $ (b) Find the unpaid…

A: Information Provided: Loan amount = $125,000 Interest rate = 7.8% compounded monthly Period for…

Q: In order to accumulate enough money for a down payment on a​ house, a couple deposits $ 234 per…

A: Here, The future value is "FV". The periodic payments are "P". The interest rate is "r". The…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $321 per month…

A: The future value of an ordinary annuity is the value of a series of equal payments made at regular…

Q: Earnest T needs $900 for his next trip to Raleigh. He has $660 in cash. How long in years will it…

A: Current value (P0) = $660 Future value (FV) = $900 Quarterly interest rate (r) = 0.03325 (i.e. 0.133…

Q: her own business. She intends to pay back the loan with a series of $2,000 payments at the beginning…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: PV(loan amount) = 150,000I/Y (interest rate) = 7%PMT (periodic payment) = 25,000

Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…

A: Loan Amortization is a process of scheduling loan payments at fixed intervals of time with fixed…

Q: An engineer who is saving for her retirement plans to deposit $500 every semiannually, starting…

A: Semi Annual Deposit = 500 End of period deposits Nominal Rate = 12℅ Quarterly Compounding N = 25…

Q: Arnie invests $18,400 in an account that pays an annual interest rate of 15 %. How much money does…

A: Present Value = pv = $18,400Interest Rate = r = 15%Time = t = 1 Year

Q: A couple would like to accumulate $20,000 in 3 years as a down payment on a house, by making…

A: The objective of the question is to find out the amount of weekly deposit that the couple needs to…

Q: Megan invests $1, 500 at the end of each year into an account earning 2% effective annual interest.…

A: Part 1:  Future value of the annuity in the first accountYear Amount Deposited0 $1,5001 $1,5002…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $244 per month…

A: Future value refers to the future worth of a present sum. Annuity refers to the periodic payment…

Q: Alexandria has $400,000 saved for retirement in an account earning 2.45% interest, compounded…

A: Solution:- When an equal amount is withdrawn each period, it is called annuity. We know, present…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $668 per month…

A:

Q: how much did she invest in each account? account paying 5% $________ account paying 11%…

A: Investment refers to those mechanism which is used by the company for the purpose of generating…

Q: A 40 year old woman puts $1500 in a retirement account at the end of each quarter through 20 years…

A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

Q: Today, Engr Santos borrowed Php 250,000 to purchase furniture for her new office. She can repay the…

A: Answer:-  Interest meaning:- The cost of borrowing money from a lender is generally referred to as…

Q: Rose has an opportunity to invest in an income account at 12% compounded continuously. The amounts…

A: given information   interest rate = 12% compounded continously  time period = 8 years

Q: ou deposit your inheritance of $500,000 into an account earning 5.3% interest per year compounded…

A: Given information: Present value of deposit is $500,000 Interest rate is 5.3% compounded monthly…

Q: finance a vacation in 4 years, Elsie saves $370 at the beginning of every six months in an account…

A:

Q: how much will she have in her account after 11 years

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month…

A: Given, Amount of deposit is $551 every month Interest rate is 3% compounded monthly Term is 5 years

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $273 per month…

A: Compounded monthly- In the actual world, interest is often compounded more than one time a year. In…

Q: o finance a vacation in 2 years, Elsie saves $380 at the beginning of every six months in an account…

A: Future Value of Annuity Due:It is the future value of annuity payments made at the beginning of each…

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.