John bought a boat valued at $26,900 on an installment plan requiring equal weekly payments for 4 years. The interest rate is 5.45% compounded annually. Round dollar amounts to 2 decimal places a) What is the size of each weekly payment? Mode N= P/Y- C/Y= PMT- b) How much would the weekly payments be if John made a $4,200 down payment? PMT- 4

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

A: The compound interest is calculated on the principal amount annually. It considers the present value…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: Scottie wants to accumulate $30,000 for a down payment for a house. He can only afford to set aside…

A: Future value needed = $30,000Payment = $300 every half year (i.e semi annually)Interest rate = 7.5%…

Q: Andrew Bolkonsky borrows $200,000 to purchase a house for investment purposes on January 1st 2006.…

A: The concept of present value states that a sum of money is worth today more than the same sum of…

Q: You borrow $560,000 to purchase a home. The loan rate is 8.95% and must be repaid in 27 years. What…

A: Compound = Monthly = 12Present Value of Payment = pv = $560,000Interest Rate = r = 8.95 / 12%Time =…

Q: John borrows money from a bank. Interest rate is 9.5%pa compounded half yearly. He has

A: Interest rate=9.5%Compounding semi annually.

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A: Annuity refers to the equal amount of payment made. In this case the monthly payments for loan…

Q: in 8 years (a) What amount should he deposit at the end of each quarter at 6% compounded quarterly…

A: We need to use PMT formula to calculate quarterly payment. PMT =FV*i(1+i)n-1 where FV =future value…

Q: ena bought a car priced at $13,350 for 10% down and equal semi-annual yments for 5 years. If…

A: Down payment is cash out of pocket made in advance to the dealer of car and remaining amount is…

Q: John takes out a 5 year loan for $10000 at 8% interest compounded monthly. Calculate his monthly…

A: The annuity is an amount that is paid back to the loan amount which consists of interest payments…

Q: 5. Jenna received a 15 year loan of $375,000 to purchase a 5.10% compounded semi-annually. a. What…

A: Loans are paid by the fixed monthly payments and these payments carry the payment for interest and…

Q: Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for…

A:

Q: Fred and Ethel are going to take out a business loan on which they will make annual payments of…

A: An amortized loan is a type of loan where the borrower makes regular fixed payments over the loan's…

Q: John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the…

A: Step 1: Given data :Loan amount (P): $125,000Annual interest rate (r): 11%Amortization period (n):…

Q: You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent,…

A: Compound = n = Monthly = 12Present Value = pv = $30,200Interest Rate = r = 8.2 / 12 %Monthly payment…

Q: Frank had originally promised to pay Jane $1,500 3 months ago, $1,000 today and $1,000 6 months from…

A: Compounding and discounting are the ways to consider the money’s time value at given rate.…

Q: Sally Johnson loaned a friend $10,000 at 15% interest, compounded annually. The loan will be paid in…

A: Interest rate=15%Inflation=3%Loan amount=$10000

Q: Bill bought an oceanfront condominium for $79,900, with $6,900 down. Assuming an interest rate of 14…

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Q: You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Riley takes out a loan L of 3000 dollars to buy a car at an effective annual rate of interest of 6%.…

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Q: A laptop was purchased worth Php 90000. This is through an installment of 2 year and there is also…

A: Time value of money is used in the calculation of the monthly instalment to be paid, the future…

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.