Karina owes $4000 in four years. She wants to repay the debt earlier and plans two equal payments in 16 months and in 28 months. Determine the size of the e payments if money is worth 6% compounded monthly.

Q: the monthly payments? $ 852.09 heir loan balance right after they have made the

A: Note : Only first three parts will be answered.  Given information : Price of home $138,000…

Q: Kym plans to deposit $130 in an account at the end of each month for the next three (3) years so she…

A: Future value Future value simply means determining the value of future investments. This approach…

Q: Luis is expected to settle a loan by paying $5,500. What amount should she pay if she decides to…

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Q: Crysta just borrowed $59,000.00. She plans to repay this loan by making a special payment of…

A: Annual payment refers to an amount that is paid annually for the repayment of a loan amount by the…

Q: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…

A: Using excel PV function

Q: Alphonse is going to put $2500 in an interest bearing account that pays 3% interest and leave it for…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: Alice keeps meaning to invest more in her RRSP, Her original plan was to invest $6000 eight months…

A: The concept of money's time value reveals that any sum of money is worth more today than what the…

Q: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

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Q: Carol borrows $27,663 to help pay for expenses. The loan is for 7 years and carries an annual rate…

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A: When making payments for loans the monthly payment amount is fixed. However the interest component…

Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

Q: to borrow PHP 1.7M from a bank and plans to repay the same amount in 8 years. If the bank charges…

A: Concept of Bank Loan  Bank borrowing and amortisation

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: Susanna wants to purchase a house costing $201,277. She plans to put $44,946 toward a down payment…

A: The monthly payments can be ascertained from the present value of annuity function.

Q: (a) What will be the monthly payment? Susan will pay $ each month. (Round to the nearest cent as…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: PV(loan amount) = 150,000I/Y (interest rate) = 7%PMT (periodic payment) = 25,000

Q: Alexa has the following payments due: $10, 500 in five years and $15, 500 in seven years, at an…

A: The objective of this question is to find out the single payment that Alexa should make in four…

Q: Sharon has  an account that starts at $5,800. She  add $100 to it each month. It earns 7.4%…

A: Present value is the estimation of the current value of future cash value which is likely to be…

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A: In this question one has to solve the present value. Now present value is the value of an asset in…

Q: Lia plans to buy a house for Php 157,950. She wants to make a down payment of Php 24, 937 and to…

A: Mortgage- A mortgage is a sort of loan used to buy or maintain tangible assets such as a home,…

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A: The time value of money concept is important in many areas of finance, such as investing, borrowing,…

Q: Stephanie borrows Php77,000 for 10 months at an interest rate of 12% per year. Find the interest…

A: Interest earned refers to the product of amount invested/borrowed, time period and interest rate.

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

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Q: Poonam wants to invest in an account today to have S4000 at the end of 8 years. If she can invest at…

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Q: After graduating with a masters degree, Gwen combined all of her student loans into a single loan of…

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A: When a loan is repaid then the repayment amount included both the principal amount borrowed and the…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Faye wants to save $90 000 in 3 years for a down payment on a house. She plans to make equal monthly…

A:

Q: o finance a vacation in 2 years, Elsie saves $380 at the beginning of every six months in an account…

A: Future Value of Annuity Due:It is the future value of annuity payments made at the beginning of each…

Q: Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of…

A: The amount at the end of 10 years will depend upon the future values of the deposits and the…

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.