Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Amount of Loan $24,000 Original Rate 12% New Rate 8% The total savings in interest will be $ Original rate is 14.35 New rate is 12.13

Q: What is the amount of each payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: monthly payment (PMT ) formula: pmt=p×rm1-1+rm-n×m where, p = principal amount r=rate of interest m…

Q: What rate of interest will you have to get per year if you would like to buy a car for $68,500 at…

A: Rate of interest is the percentage of return that is expected to be generated by investing in the…

Q: You owe $24,000 on student loans at an interest rate of 5.45% compounded monthly. You want to pay…

A: Given loan amount is Interest Rate is Time period since number of payments is monthly total number…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: We take loans to buy large ticket items like a car or a house. The loan is then repaid through…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Cost of home $                                      509,000Down payment20%Down payment509000*20%Down…

Q: Enter your search term You want to buy a $165,000 home. You plan to pay 20% as a down payment, and…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: Calculating interest earned and future value of savings account. If you put $6,00 in a savings…

A: The value that is estimated for the future on the basis of current value and rate of interest is…

Q: ou want to purchase a new house when you graduate. The house that you want costs $600,000. You will…

A: Annual Interest is the percentage at which interest is charged on a loan or earned on an investment…

Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Complete parts (a)…

A: Loans are paid by equal monthly installments and these monthly installments carry the payment for…

Q: How much is the effective cost if you need to borrow $300,000 for one year with a discount loan of…

A: The effective cost of a discount loan is calculated as interest paid on principal amount divided by…

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Loan amount = Amount of home * (1-Down payment %) = 501000*(1-20%) =400800

Q: Assume you have a student loan that you will pay off in 10 years. How much would you save an…

A: The question is related to refinancing the loan at lower interest rate which was originally financed…

Q: ou have a growing payment stream that you want to be able to fully fund by making a single deposit…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: You wish to accumulate $100,000 through monthly payments of $100. If you can earn interest at an…

A: To calculate the time period for a required future value with given periodic deposits at a given…

Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…

A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…

Q: Question 11 What is the total amount you will have to repay for your $20,000 student loan if the…

A: Loan amount (PV) = $ 20,000 Annual interest rate = 5% Monthly interest rate (R) = 5%/12 = 0.416667%…

Q: Suppose you purchased a house 7 years ago and took out a mortgage for $400,000 with a 5.6% interest…

A: Here,

Q: You take a 60,000 car loan at 5% interest for 4 years. How much will your monthly payments be? (use…

A: EMI (Equated Monthly Installment) is referred to as an amount, which is payable each and every month…

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A: This is present value of growing of annuity problem can be solved using formula.Loan…

Q: Annuity Present Value You are looking into an investment that will pay you $12,000 per year for the…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: You are comparing two investment options that each pay 6 percent interest, compounded annually. Both…

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Q: Amortizing loans Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate…

A: A mortgage loan refers to the type of loan that is secured by the underlying of specific asset, the…

Q: much interest (to the nearest dollar) would be saved on the following loan if the home were financed…

A: In this we need to calculate monthly payments in both cases and find out the difference in interest.

Q: You need to have OMR 15000 in five vears to payoff a home loan. You can invest in an account that…

A: The Present Value of a lump sum: When a single amount is to be invested now, at a given interest…

Q: You're borrowing $6,000 for 4 Years with a stated simple interest annual interest rate of 8.5%. How…

A: Borrowings = p = $6,000Term = n = 4 yearsRate of interest = r = 8.5%

Q: You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest…

A: Loan Amount = 180,000 Time Period = 12 years Interest Rate = 4.8%

Q: Value of a retirement annuity. Personal Finance Problem An insurance agent is trying to sell you an…

A: The objective of this question is to calculate the present value of an annuity. An annuity is a…

Q: Question: Thank you Suppose that you have borrowed $250,000 in the form of a 30-year loan with an…

A: Note - Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Find the future value of a simple interest loan of $2,500 at 8.8% interest for 10 months Give your…

A: Loan amount = $2,500 Interest rate = 0.088 Loan period = 10 months Future value of simple interest…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: Future value; single amount   You are saving for a new car. You place $10,000 into an investment…

A: Present Value = pv = $10,000Time = t = 4 years

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.