Christina Rodriguez bought a Smart TV that costs P110,000. She paid P25,000 as down payment and paid the balance in 12 monthly equal payments. If money is worth 12% compounded monthly, find the monthly payment.

Q: Jasmine won a prize: the right to receive 36 payments of $100 per month with the first payment one…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: Jayjay purchased a motorcycle and paid the down payment of P30,000. The monthly payment is P3650…

A: Future value of annuity ascertains the future value of the asset, loan, or a project for a string of…

Q: Kiki bought a computer for Rp. 8,000,000, -. If he bought it With credit, he must prepare advance…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

Q: Stefan borrowed money from Sanjeev and agreed to pay back $300 5 months from now and $100 in 11…

A: In finance, the time value of money rule states that the money received earlier is more powerful…

Q: Rebecca saved $1000 from her summer job and bought a CSB earning 3.75%, compounded monthly. She…

A: Amount saved = $1000 Interest rate of CSB = 3.75% per annum = 0.3125% per month Total amount…

Q: A. Your mother plans to buy you laptop for your online class. She got an offer from Abenson of…

A: The annuity is called a series of payments for a definite period of time at a specified interest.…

Q: Calculate Sandy’s monthly payment

A: Loan Payment: These are payments made by the lender to the borrower for amortizing the loan amount.…

Q: 1. If money is worth 5% compounded quarterly, how much must Julea save every end of three months to…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: 3. To buy a computer, Tom borrowed P30,000 at 9% simple interest calculated yearly. If he will be…

A: Interest rate charged on the loan is a function of the demand of the funds and the supply of the…

Q: Chandler currently has ₱2376 saved towards the purchase of a home theatre system. He wants to be…

A: Current Savings = Present Value = 2376 Future Value Required = 5600 Interest Rate = 3.84%/12 = 0.32%…

Q: To buy some furniture, Asmaa can put $150 down and "don't pay a cent" for 6 months. At the end of 6…

A: Price of furniture is sum of amount financed and the down payment. Amount financed is calculated by…

Q: Annie buys a television set from a merchant who ask P1250 at the end of 60 days. Annie wishes to pay…

A: Simple Interest :— Simple interest is a quick and easy method of calculating the interest charge on…

Q: Maria purchases a new big screen television for $850 on her VISA card that carries a favorable…

A: Formulas:

Q: Andy wants to buy a car that costs $22,750. The dealership will finance the car for 5 years, at…

A: A loan is an agreement where an amount is forwarded in exchange for a periodic payment which would…

Q: (Annuity payments) Prof. Finance is thinking about trading cars. She estimates she will still have…

A: Step 1:Step 2:Step 3: Step 4:

Q: B. Ordinary Annuities 1. Roselyn spends Php 850 per month on cigarettes. If she stops smoking and…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…

Q: Katie wants to save up $8100 to pay for her tuition by making quarterly payments of $440. Determine…

A: Step 1 Payment refers to the exchange of cash, products, or services for goods and services in an…

Q: Joey currently has ₱2376 saved towards the purchase of a home theatre system. He wants to be able to…

A: Size of the monthly payment can be calculated using the formula of the future value of annuity.

Q: A couple with a newborn baby needs a new vehicle. They take out a $29,000.00 car loan at 8.9%…

A: Given: A couple with a newborn baby needs a new vehicle. They take out a $29,000.00 car loan at 8.9%…

Q: Alexa needs $8,600 worth of new equipment for his shop. He can borrow this money at a discount rate…

A: Loan Proceeds are the amount that is disbursed from a loan, which is usually lesser than the loan…

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

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

Q: Boniface needs to save $500 to buy a new computer. They have $396 to invest in a savings account…

A: Compound interest: Under the compound interest is interest is calculated on the amount that includes…

Q: V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5…

A: The money's time value concept indicates that any sum is worth more now as compared to the upcoming…

Q: The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can…

A: Given: Future value = $8,000 Monthly deposit = $200 Interest rate = 4%

Q: The cash price of a washing machine is RO 495. Hilal pays RO 25 down and makes 20 payments of 26 RO…

A: Given: Cash price = RO495 Down payment =RO 25 Number of payments = 20 Amount paid = RO26

Q: You just purchased a new car for Rs. 2.5 million and agreed to pay for the car in 50 monthly…

A: In this we have to calculate the monthly interest rate and present value FACTOR and get monthly…

Q: he Weidmans want to save $45,000 in 3 years for a down payment on a house. If they make monthly…

A: Monthly payments that are required to meet the goal are periodic deposits made in view of reaching a…

Q: Emily is buying a new table for $1400. The dealer is charging her an annual interest rate of 10.8%.…

A: The loan amount is $1400 with an annual interest of 10.8% for 36 months. we will calculate the…

Q: Q1:Alice Cohen buys a two-year-old Honda from U-Pay-Less-Cars for $19,000. She puts$500 down and…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

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.