Assuming that you obtain a bank loan for Php. 500,000 with an annual interest payment of 10% of the principal. Compute for the present value under the following independent scenarios:            Effective rate is 8%

Q: Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000…

A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%

Q: Find the APR(true annual interest rate) to the nearest half percent for the following loan.Use the…

A: Annual Percentage Rate = Finance Charge / Amount Financed

Q: A loan of $10,000 today is to be repaid by annual payments of $800 to commence one year from now and…

A: Final payment:The "final payment" represents the concluding installment in a series of financial…

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following.…

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan…

Q: A $400 loan is to be amortized with eight quartely payments over 2 years. If the interest is at J4 =…

A: given, PV = $400 N = 2 M = 4 (quarterly payment) r=10%

Q: (b) Suppose that you took out PTPTN loans totalling RM24000 with interest of 1% per year. You have…

A: Interest is the cost of borrowing the money. It can be either simple or compounding.

Q: Find the interest that will be deducted in advance from a loan of P25,000.00 due in 2 years if the…

A: Given Information : Amount of loan = ₱25,000 Annual interest rate = 6% Number of years = 2

Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.

A: Loan amount (P) = P3000 Interest rate (r) = 4% Period (d) = 72 days

Q: Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: What effective annual interest rate are yo being charged

A: Information Provided: Face amount = $2000 Interest amount = 14% Compensating balance = 20%

Q: Use the following information to answer the question: Loan amount: $245,000 Loan term: 30 years…

A: Calculate the rate of interest keeping the same monthly instalments, tenure, however simply changed…

Q: You obtain a loan for ₱ 1,500,000.00 payable in three equal annual installments of ₱50,000.00 each.…

A: The present value of the loan: The loan obtained is the present value of all loan installments at…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Borrowed amount is P10,000 Nominal interest rate is 7.5%   To Find: Effective interest rate on a…

Q: Suppose that you need an amount of money which equals to $10000000. It is possible to find it from…

A: To find equal monthly payments we have to calculate present value FACTOR and find equated monthly…

Q: Find the discount interest for a 2-year PHP 102,000 loan if the discount interest rate is 1.8%

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: Find the simple interest and the full amount/future value for a loan of S3,600 for 3 years at a rate…

A: A loan is an agreement between two parties where a sum is given in return for it being paid back…

Q: Consider a loan of $90,000 at 4% compounded annually, with 12 annual payments. Find the following.…

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

Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.

A: Given: Loan = P 3000 Interest rate = 4% number of days in loan = 72 total number of days in year =…

Q: Fill in the missing values A through D in the table for a loan of $10,000, if the interest rate is…

A: Compound Interest is the interest on a deposit or loan that is calculated on the initial principal…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a.…

A: The term annual percentage rate (APR) describes the annual interest that is produced by a payment…

Q: Find the present value (principal) to pay on a loan if $ 8,923 of future value (amount) is paid at…

A: Future value = Present value * (1 + rate*time)

Q: Find the amount of interest and the maturity value of the following loan. Use the formula MV =P+I to…

A: Interest rate = 7% + (1/2)% Interest rate = 7.50% ------------------- Monthly rate = 7.50%/12…

Q: Use the Loan Payoff Table to determine both the finance charge and the payment required to amortize…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays…

A: Accumulation rate is the increase in size of asset, position or overall buying activity of…

Q: If a nine month term deposit at a bank earn a simple interest rate of 9% per annum, how much should…

A: Term deposit is a way in which the person locks his amount or we can say sum of money for a specific…

Q: You can obtain a loan of $200000 at a rate of 15 percent for two years. You have a choice of (i)…

A: Loan amount  $ 2,00,000.00 Time Period 2 Interest Rate 15%

Q: You have been assigned to estimate the interest rates that your company may have to pay when…

A: Inflation adjustment is a crucial process in finance, aiming to account for the eroding effect of…

Q: you are analyzing a GPM. the terms are $60,000 loan amount, 9% note rate, 30 years, monthly…

A: Loan notes are a type of debt instrument or promissory note issued by a borrower to a lender as a…

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A: For the annuity fund Monthly payment included Principal amount and interest amount which is…

Q: Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.