How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the discount rate is 9%. How much is the proceeds after deducting the interest?

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: You borrow a five-year $13,000 loan with monthly payments of S250. What is the annual percentage…

A: PV = 13000, PMT = -250, N = 5*12, FV = 0 use rate function in Excel monthly rate = 0.48%

Q: What is the payment for a loan of $320000 with an interest rate of 8.13% compounded monthly for 6…

A: using financial calculator to solve the monthly payment

Q: How much was borrowed is a simple interest rate of 2.10% was offered payable in 4 months with…

A: Simple interest = Principle * Interest * time

Q: What is the discount interest rate if P129,750 was obtained after a loan of P150,000 was granted for…

A: Simple interest is a quick and easy way to find out how much money you owe. The daily interest rate…

Q: You take one-year installment loan of $1000 at an interest rate of 12% per year (1% per month) to be…

A: Loan amount (L) = $1000 r = 1%  n = 12

Q: What is a monthly payment on a 25 year loan of 70200 if the annual interest rebate is 5%

A: Using Excel PMT function

Q: A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If…

A: Present value of deferred annutiy Present value of deferred annuity refers to the annuity which…

Q: Mr. Cruz borrowed P100,000 from BPI at a stated rate of 6% payable over a period of one-year. What…

A: Loan amount = P100,000 Interest rate = 0.06 Interest amount = P6,000 (i.e. P100,000 * 0.06)…

Q: a) For a loan of $55,000, with an annual interest rate of 5 % p.a. compounded monthly, and monthly…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: A mortgage loan should be fully repaid in 48 monthly installment of Rp5 million. If the loas is…

A: The formula of loan amortization: Loan amortization = Total installment - outstanding balances * (…

Q: How much is the amount of interest on a loan of $12330.7 that is borrowed today and is to be repaid…

A: Future value refers to the value of a current asset on some future date affected by the interest…

Q: 4. What is the principal of a loan if the final amount is P250,000 at 8% compound interest,…

A:

Q: A consumer loan of P80,000 is obtained that is due 3 months from now. If interest rate is 8%…

A: The borrower is required to pay the lender the initial sum borrowed and the interest on the loan.…

Q: You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: A loan of P30,000 was made with a rate of 15% annually. How many years will he pay an amount of P…

A: Loan amount  is P30,000 Rate"r" is 15% Annually Total Interest paid is P6,000 Future Value is…

Q: a 5-year $10,000 loan requiring monthly payments at a fixed rate of 9% is amortized into five-year…

A:

Q: To pay off a P100,000 loan , it is required that 20 semi -annual payments that is increased by…

A: A) P2,854  Explanation:

Q: Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate…

A: Deposit amount = 1500 Php Interest rate = 6% Period = 5 Years Compounding = Annually

Q: A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9% per annum. How…

A: given, P= p300,000 r=9% m=12 n=2

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: A loan of P5,000 is made for a period of 15 months, at a simple interest rate of , what future…

A: We need to use simple  interest formula to calculate future amount due after loan period…

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: If the bank quotes a loan APR of 9% per annum, compounded monthly, what do you have to pay back in 1…

A: Compound interest= P(1+r%/n)^tn Interest rate = 9% Borrow amount= 100

Q: what is the monthly payment for a loan of 140,000 30 year fixed rate of Apr of 7.5% what is the…

A: Using excel PMT function

Q: If you borrow $800 for 6 months at 4% annual simple interest, how much must you repay at the end of…

A: Borrow amount (principal)= 800 Interest =4% Period =6 months

Q: If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months.…

A: Loan amount = P 12450 Par value = P 12840 Discount amount = Par value-Loan amount…

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: If $6,840.00 is loaned for 4 months at an annual simple interest rate of 3.5%, how much interest is…

A: Principal =$6840 Time = 4 months Simple Interest = 3.50%

Q: If you borrow S20 000 as a five-year loan from the bank and the bank requires you to make…

A:

Q: You buy items costing $800 and finance the cost with a fixed loan installment for 18 months at 5%…

A: As we are told that interest rate charged on the loan is simple and not compounding, moreover we are…

Q: A loan for P 50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: The Loan amount will be equal to the present value of payments today. Effective quarterly interest…

Q: ate of 12% per year.

A: Simple interest  (SI) is the cost of borrowing. It is the interest only on the principal amount as a…

Q: An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the…

A: A bank discount is a discount charged by the Bank on the loan given to the customer. On maturity,…

Q: Acme Industries Ltd. borrowed $50,000 and amortized the loan over 10 years at a rate of j1=8.00%.…

A: Monthly payments refers to the periodic payment of repayment of a loan. Monthly payments includes…

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: A person owes $1000 due in two years and $4000 due in 6 years. Using an interest rate of 12%…

A: In the given question we require to calculate the present value of $1000 due in two years and $4000…

Q: What is the simple interest rate if Rogine paid an interest of P2,100 after 2 years and 6 months on…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: A loan of $28,000.00, made 6 months ago, will be repaid by 3 equal payments – one today, one in 11…

A:

Q: How much interest will be collected in advance from a loan of $ 25,000 for 2 ½ years if the discount…

A:

Q: Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly, Find…

A: Monthly payment (M) = P 800 Number of payments (n) = 8  r = 8% per annum = 0.667% per month

Q: A cash loan is to be repaid by paying P13,500 quarterly for 3 years starting at the end of 4 years.…

A: This problem is related to deferred annuity where annuities are deferred. hence there are no payment…

Q: A man borrowed P20000 and promised to pay P35000 at the end of 5yrs. If interest is compounded…

A: Borrowed amount (P) = P 20000 Promised amount to be paid (F) = P 35000 n = 5 years = 10 semiannual…

Q: A loan of P 10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual…

A: Loan (A0) = P10,000 Interest rate (r) = 10% compounded semi-annually = 10/2 = 5% Period (n) = 5…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.