If you borrow $9,500 at $760 interest for one year, what is your annual interest cost for the following payment plan? (Round the final answers to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective rate % % % X

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: The problem is asking us to find the term of an ordinary annuity. An ordinary annuity is a sequence…

Q: Consider the following loan. Complete parts (a)-(c) below. An individual borrowed $87,000 at an APR…

A: Here, Borrowed Amount is $87,000 APR is 5% Time Period is 19 years Monthly Payment is $592

Q: A perpetuity paying $1 at the beginning of each 6-month period has a present value of $20. Another…

A: Perpetuity is special kind of annuity in which there are payments forever and for infinite period…

Q: What is the PV of a 8-year annuity due (payments at beginning of period

A: PV = PMT * ((1 - (1 + r)^(-n)) / (r * (1 + r)))Where:PV is the present valuePMT is the payment…

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: You take out a 10-year installment loan for $220,000 and will make 40 quarterly payments of…

A: Amortization Table A document that details the monthly loan payment amount is known as an…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $888 is repaid at…

A: Given information: Principal (P) = $800 Amount repaid (A) = $888 Time in year (t) = (4 / 12) =…

Q: month. The certain annuity is 325038 PLN and nominal interest rate is 12%. Prepare the amortization…

A: Annuity Payment to be received at the beginning of each month  Annuity amount  325038…

Q: You plan to borrow $48,800 at a 6.5% annual interest rate. The terms require you to amortize the…

A: The objective of the question is to calculate the amount of interest paid in the second year of an…

Q: An annuity-immediate has payments of $400, $600, $100 at the end of year for three years. Determine…

A: Convexity means a change in prices due to a change in interest rates. It is used by analysts for…

Q: What is the effective annual rate (EAR) if your credit card charges you 10.45 percent compounded…

A: The effective annual rate measures the rate of interest or return when the compounding is done on a…

Q: Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start…

A: Installment is the amount of periodic payments a borrower has to make in order to repay his loan in…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMT One of the financial functions, PMT, determines the loan payment based on fixed payments and a…

Q: What is the present value of a 8-year ordinary annuity with annual payments of $523, evaluated at a…

A: The PV of an annuity refers to the total value of its cash flows at present assuming they are…

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value…

A: Present value of annuity = $20000 Quarterly rent (Q) = $900 r = 4.7% per annum = 1.175% per quarter…

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: Investigate the effect of the interest rate on home loans by finding the monthly payment and the…

A: Data Given, Loan Amount (Principle) = $150000 Time period of loan (n)= 20 years Payment Interval =…

Q: (using ordinary general annuities) Convert an annuity with quarterly payments of $ 20,000 to one…

A: The regular periodic payments made at each periodic interval indicate the annuity payments. The…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Given: Future value = $400,000 Interest rate = 6% Years = 18

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $48,000 at  5 1/4%…

A: The monthly payment for a mortgage is made is such a way that the mortgage amortizes to zero by the…

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…

Q: Scenario 2: You need a $12,000 loan to buy a good used car. Your bank offers a 3-year loan with an…

A: Monthly payment refers to an amount that is paid every month until the loan period including…

Q: Assume that you want to buy a house and have to borrow $80.000 over a term of 25 years. The annual…

A:

Q: Compute the nominal annual rate of interest for the following simple annuity due. Future Value…

A: Let's dissect the computation in detail: 1. Rent Payment: In this annuity, the rent payment is the…

Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Present Value  $ 3,00,000.00 Interest Rate 4% Compounded Monthly Time Period 15 Years

Q: For the following annuity due, determine the nominal annual rate of interest. Future Periodic Rent…

A: Solution:- When an equal amount is paid at the beginning of each period, it is called annuity due.…

Q: Determine the present value of an annuity for 15 years if the interest rate is 8.8% per annum…

A: An annuity is a constant stream of cash flows. In this case the cash flow amount is $72.50 in each…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: Determine the monthly payment for the installment loan. Amount Financed​ (P) =$1000 Annual…

A: We will use following formula to calculate monthly installment :   Monthly Payment = Loan Amount ×…

Q: Prepare the first row of a loan amortization schedule based on the following information. The loan…

A: Loan payment refers to the amount that is being paid by the borrower to the lender for the repayment…

Q: he following loan is a simple interest amortized loan with monthly payments. $7000, 7%, 4 years (a)…

A: A loan indicates a sum borrowed to meet specific needs. The loan amount is generally repaid via a…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment R,…

A: The ordinary annuity means a series of equal payments made at regular intervals at the end of the…

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Simple interest is the type of interest that is calculated on the original amount of the loan and…

Q: Find the amount accumulated FV in the given annuity account. (Assume end - of - period deposits and…

A: Future value of annuity refers to the total value of a series of equal payments made at regular…

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.