bank for housing needs with a compound interest of 15% per year? A) 706 025

Q: A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at…

A: A sinking fund increases a company's creditworthiness, it allows a small corporation to offer a…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated as the present value of quarterly payments, The present value…

Q: 7 - What is the total amount of money to be repaid at the end of 10 years for a loan of 200 000 lira…

A: In this question we need to compute the Future value of the loan taken today worth 200000 lira

Q: You owe your parents $15,000 (in present day dollars) and want to repay them in equal amounts the…

A: Present value = $ 15,000 Annual interest rate = 10.6% Number of compounding per year = 12 First…

Q: If P20,000 is borrowed for 200 days at 12% per annum simple interest. How much will be due at the…

A: Simple interest measures the interest payment on the principal amount borrowed for a period of time.…

Q: QUESTION 6 You have a 7-year loan of $80,000. The borrower will pay $8,500 at the end of Year 1,…

A: Loan amount = $80,0001st year payment = $9,5002nd year payment = $8,5003rd year payment  =…

Q: 7 - When you estimate that you can buy a house for 1,000,000 TL in 10 years, if you accept that the…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: (A) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5%…

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

Q: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

Q: me expected to be in the follow

A: And we know that Net Income =Net Operating Income (NOI) - interest - tax Given loan =$ 8000000 @…

Q: What is the total interest / dividend amount to be repaid at the end of 1 year for a loan of 200 000…

A: simple interest formula: interest = principal×rate×time

Q: LO2 The interest rate on a $100,000 loan is 6% compounded monthly. How much longer will it take to…

A: compound = monthly = 12 Present value = pv = $100,000 Interest rate = 6 / 12 = 0.5% Time in months =…

Q: 5. How much interest must be paid on a loan of $4300 at 10% compounded semi- annually for 4 years?…

A: Formula: P x [ 1 + ( R / N )NT P = Principal R = Rate of interest N = Number of compounding periods…

Q: How much will you owe at the end of 10 years and a month, if you decide to pay your yearly bonus at…

A: Here, Loan Amount$355,000.00Time Period in years15APR5.50%Compounding Period (Weekly)52Yearly Bonus…

Q: A company borrows 400 000 EUR for 18 years at a rate of nstalments every 3 years. ) How much are the…

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

Q: Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the…

A: Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…

Q: What is the total amount of money to be paid back at the end of 5 years for a loan of 160 000 liras…

A: Given: Years = 5 Amount = 160,000 Interest rate = 15%

Q: If $35000 is put in a savings account paying interest of 5% compounded annually, what amount will be…

A: The future value of the invested amount is determined after compounded the interest accrued with the…

Q: Suppose that you borrow a certain amount of money at 4% effective and you will repay the loan by…

A: Loans are paid by the equal fixed periodic payments that carry the payment for interest and also…

Q: 5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement…

A: Present value will be the maximum amount that can be saved or invested now to generate a steady…

Q: How much will you owe at the end of 10 years and a month, if you decide to pay your yearly bonus at…

A: Here, Loan Amount$355,000.00Time Period in years15APR5.50%Compounding Period (Weekly)52Yearly Bonus…

Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…

A: Using excel FV function

Q: 37. Annuity Due. (LO5-3) a. If you borrow $1,000 and agree to repay the loan in five equal annual…

A: Annuity refers to a stream of cash flow occurring on a periodic basis. Here the amount of annual…

Q: What is most that we should pay today for an annuity contract that promises to pay $15,000 per year…

A: We need to use ordinary annuity(payment due at end) formula below to calculate present sum needed…

Q: A company wishes to have P 350,000 in 9 years from now for building renovation. The company…

A: Amount needed (F) = P 350000 n = 9 years Deposit amount (D) = P 30000 Let r = Interest rate

Q: 3) A 20 year loan of $12,000 is repaid with annual payments of $750 at the beginning of each year.…

A: The true interest rate attached to an investment or loan is described by the effective annual…

Q: 35 - What is the total amount of money to be paid back at the end of 3 years for a loan of 150 000…

A: A loan is a kind of financial obligation that an individual or group of individuals or a business…

Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…

A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…

Q: 9. A company borrows 1,000,000 at an annual effective discount rate of 4%. The loan is to be repaid…

A: In a time value of money concept based payment stream, we have to find the value of the last…

Q: What is the total amount of money to be paid back at the end of 3 years for the loan of 175 000 lira…

A: Using excel FV function

Q: 5. What is the amount of each annuity payment if a 5-year ordinary annuity has a future value of Php…

A: The ordinary annuity would be providing the valuation of income added at the end of each year to get…

Q: What is the total interest/profit share amount to be repaid at the end of 7 years for a loan of…

A: In finance, the term loan shows an amount borrowed by one person from another to support the…

Q: Single-payment loan repayment Personal Finance Problem A person borrows $100 that he must repay in a…

A: As per the time value of money concept, FV=PV∗(1+i)nwhereFV = Future value = Amount due in futurePV…

Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due…

A: We need to use the concept of time value of money here. We will first have to find the amount at the…

Q: An institutional lender is willing to make a loan for $1 million on an office building at a 6…

A: Future value The value of today's money on a future date at a given interest rate is known as the…

Q: You have taken out a $200,000, 3/1 ARM amortized over 30 years with these initial loan features:…

A: The interest rate on an adjustable rate mortgage, or ARM, type of home loan, may alter over time. An…

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: 8. Suppose that you want to take a five-year loan of $80,000. The interest rate is 9% per year, and…

A: Loan Installment is that amount which is paid by the borrower to lendor till the time of repayment…

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.