IF YOU BORROW MONEY FROM YOUR FRIEND WITH SIMPLE INTEREST OF 12%, FIND THE PRESENT WORTH OF P50,000, WHICH IS DUE AT THE END OF NINE MONTHS. O a. P45,781.56 O b. P45,871.56 O c. P45,187.56 O d. P45,817.56

Q: If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will…

A: The value of a current asset at a future date based on an expected rate of growth is known as future…

Q: If you borrow money from your friend with simple interest of 12%, find the present worth of ₱20,000,…

A: The value at the end of 9 month is 20000. If we want to find out the present worth @12% annual…

Q: you borrow $2,700 at 8% simple interest per year for five years, how much will you have to repay at…

A: interest =p×r×t100where,r=rate of interestp=principal t=years

Q: • Determine the exact simple interest on P5,000 for the period from Jan 15 to Nov 28, 1992 if the…

A: Simple interest = Principal * Rate of interest * Period Where, Principal = 5000 Interest = 22%…

Q: If you deposit RM15,000 in an account earning 12%, how much would you have in the amount after 15…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,…

A: Simple interest formula FV = P*(1+rt) where FV = future value P = Present value r = rate t = time

Q: If you deposit RM15,00O in an account earning 18% with quartely compounding how much would you have…

A: Using the future value function in excel

Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…

A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…

Q: If you deposit RM25,000 in an account earning 16% with quarterly compounding, how much would you…

A: Amount of Deposit = RM 25,000 Interest Rate = 16% per annum Quartery interest Rate(r) = 16%/4 = 4%…

Q: If you deposit RM35,000 in an account earning 18% with monthly compounding, how much would you have…

A: Using the future value function

Q: A person deposits 200$ at the end of first, 300$ at the end of second and with draw 150$ at the end…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: A merchant puts in his P3,000.00 to a small business for a period of six years. With a given…

A: Information Provided: Present value = P 3,000.00 Period of investment = 6 years Interest rate = 20%…

Q: Suppose you borrowed $45,000 at a rate of 8.4% and must repay it in 5 equal installments at the end…

A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: Present Value is referred to as the current value of future sum of the funds or the cash flows…

Q: 7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying…

A: Introduction: Future value can be referred to as the value of an underlying asset or security at a…

Q: 21. A friend lends you P500 for a year with 3% interest. How much interest will your friend earn?

A: Interest can be computed using the formula given below. Interest = Principle x Rate x Time

Q: If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you…

A: Compounding is a way to find the FV of a deposited amount by considering the appropriate rate for…

Q: If you deposit $3,500 monthly into a savings account which earns 4.25% interest rate compounded…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: If you deposit RM25,000 in an account earning an interest of 15% per annum, much would you have in…

A: Given: Present value = RM25000 Interest rate = 15% per annum Time period = 10 years To compute the…

Q: Suppose you have $2,300 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.4%…

A: A Certificate of Deposit (CD) is a financial tool that offers a predetermined interest rate for a…

Q: A man will deposit P1,000.00 with a savings and loan association at the beginning of each 3 months…

A: Quarterly deposit refers to the amount to be paid at each quarter until the whole repayment of…

Q: What is the present value annuity due of RM4,500 with a 6 percent discount rate for 5 years? Select…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of…

A: Given:End of year 3=F1=$400End of year 5=F2=$600Interest=12%To compute:Amount deposit today=P

Q: If you borrow $5,400 at a simple interest of 5% per year, how much will be repayed after 6 years?

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: If you deposit RM5,072 in an account earning 9%, how much would you have in the account after 15…

A: Using the FV function in excel

Q: f you deposit RM3,305 in an account earning 12%, how much would you have in the account after 15…

A: Using the future value function in excel

Q: How much would you be willing to spend for an annuity that pays $2,500 at the end of each year for…

A: Present value = Future value * PV factor

Q: You lend a friend $800 and they agree to make quarterly payments for 1 year. You charge your friend…

A: Loans are paid by equal periodic payments and these payments carry the payment of interest and…

Q: If you deposit 100 OMR into your savings account at the beginning of each year over a 12-year…

A: The future value of annuity due refers to the future value of a series of payments. The future value…

Q: You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year…

A: Given Details: Amount deposit in year 1 =$8,000 Amount deposit in year 2 =$7,500 Time period = 15…

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800000 down payment,…

A: Mortgage are the loan which is taken by the individual to meet its financial requirements. The…

Q: Suppose you borrowed $20,000 at a rate of 9.2% and must repay it in 5 equal installments at the end…

A: We take loans to buy large ticket items like a car or a house. The loan is repaid using fixed…

Q: Suppose you borrowed $25, 000 at a rate of 9.0% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $25,000Interest rate = r = 9%Time = t = 4

Q: If you borrow money from your friend with simple interest of 12%, find the present worth of P20,…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Suppose you borrowed $38,000 at a rate of 9.0% and must repay it in 4 equal installments at the end…

A: Installment payment is one of a series of regular payments of a loan, debt, etc., or the system of…

Q: Assume that you deposit RM700 in a savings account that pays 5% per year over 6 years.  Your savings…

A: Financial institutions pay deposit account holders interest on their deposits. Deposit accounts are…

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.