Katy invests $12,000 into an account at an annual rate of 0.3% simple interest for 36 months. 1) What is the Principal in this scenario? 3 $12,000 0.003 0.3% 2) What is the interest rate for this account? $12,000 3 0.003 ○0.3 %

Q: 8. An amount of P 5000 is deposited iin a bank paying an annual interest rate of 3.1% compounded…

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

Q: Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest…

A: Simple interest is the method of calculating interest when the interest earned does not get…

Q: 1. you deposit $500 into an account that pays 4.2% interest compounded monthly. how much money will…

A: Given details are : Present value (investment today) = $500 Interest rate = 4.2% Time period of…

Q: Bank D gives a loan of RM 30,000 to Shahril with interest rate of 8.25% compounded quarterly.…

A: Compound amount of single sum can be calculated by using this equation A=P(1+r)n Where A= Final…

Q: 3) $4491 is deposited into a savings account at 4% interest, compounded quarterly. To the nearest…

A: Here, Deposit Amount (PV) is $4491 Interest Rate (r) is 4% Compounding Period (m) is Quarterly i.e.…

Q: annual interest rate?

A: The formula to calculate the future value of current investment amount is  C*(1+r)n, where C is the…

Q: Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded…

A: A=P+193.03 r- 0.021 t=2 years Since A=Pert Therefore, P+193.03= Pe 0.21*2 P+193.03/P= e0.042…

Q: Mr Y invested R2000 in a bank for 7 years. The interest rate was 5% compounded weekly for the first…

A: Investment        R 2,000.00 Time Period 7 Interest Rate for 2 Years 5% Interest Rate for 3…

Q: Suppose you invest $18,860.00 into an account earning an interest rate of 2.426% compounded…

A: The worth of an asset today at some point in the future based on an estimated rate of growth is…

Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: Find the simple interest owed for the loan. $5,650 at 8% for 1 year In one year at 8%, deposit of…

A: Principal amount = $5,650Rate = 8%Time period = 1 yearRequired:Simple Interest=?

Q: he principal is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: Simple interest is a straightforward method of calculating interest based on a fixed percentage of…

Q: 3.Assume that you deposit $9,000 at a compound interest rate of 8% for 5 years. Please calculate how…

A: Deposit amount (D) = $9000 r = 8% n = 2 years

Q: Robert deposit $5000 into an account paying simple interest at a rate of 2.5%. A. Give the future…

A: The formula to calcuate simple interest is  P*r*t Where P is the amount deposited  r is the interest…

Q: Mark Welsch deposits $7,400 in an account that earns interest at an annual rate of 12%, compounded…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the…

A: Compound Interest With compound interest, more interest can be earned compared to simple interest…

Q: The principal represents an amount of money deposited in a savings account subject to compound…

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

Q: If Christine borrowed P 75 000 from the bank at an interest rate of 3.5%, how much is the interest…

A: Solution 1: Interest in 8 months = P * R * T

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: We need to use simple interest formula to calculate the simple interest. The formula is Simple…

Q: In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6…

A: Payment period is the no. of times money is deposited in a year. compounding period is the no. of…

Q: You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7% interest.…

A: Solution:- Present value means value in today’s terms by discounting it back at the given interest…

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = P50,000R = Rate on interest = 3%N = number…

Q: an borrows Php 5000 with the agreement to pay the principal and all accumulated simple interest at…

A: In simple interest there is no interest on interest and interest on principal loan amount only so it…

Q: Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded…

A: When interest is compounded continuously, it means that the interest is calculated on the amount…

Q: A6) Finance If $150 is placed in an account that earns a nominal annual interest rate of 6 percent,…

A: To calculate the future value we will use the below formula   Future value = P*[1+(r/m)]t*m Where P…

Q: Your goal is to accumulate $60,000 in seven years' time.  What monthly deposit must you make into a…

A: Interest rate per month = 12%/12 = 1% per month Time period = 7 years * 12 = 84

Q: Appa deposits $4000 in an account earning 2.9% interest compounded monthly. How much will Appa have…

A: Nominal rate 2.90% Compounding Monthly Effective annual rate ((1+2.9%/12)^12)-1) Effective…

Q: Suppose you deposited $41,000 in a bank account that pays 5.75% with daily compounding based on a…

A: The objective of this question is to calculate the future value of a deposit in a bank account with…

Q: Find the amount (in $) of interest on the loan.

A: Interest: It refers to the monetary charge paid by the borrower to the lender for taking a loan. It…

Q: Q1) A man deposited $10,000 in a bank saving account that pays X % / year compounded monthly. He…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A bank features a savings account that has an annual percentage rate of r = 5.8% with interest…

A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: $100 is deposited in the bank and remains in the account for three years, earning 6% per year with…

A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.

Q: You invest $8,500 in a savings account that pays interest of 4.8% compounded monthly. To the nearest…

A: The future value function is applied when the investor wants to know how much he/she will get after…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded…

A: Future value of continuous compounding = Present Value *e^(rate*Term)

Q: Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly…

A: To complete this table we have add simple interest on ending balance and then add deposit balance to…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The first question is asking for the future value of a single sum. The formula for future value is…

Q: Ali invested 5000 Rials in a saving account that paid quarterly interest. After 6 years the money…

A: answer : let us first not down the information given in the question initial investment = 5000…

Q: Suppose you invest $3,800 today in an account that earns a nominal annual rate (inom) of 12 percent,…

A: Compound = Quarterly = 4Present Value = pv = $3800Interest rate = r = 12 / 4 = 3%Time = t = 12 * 4 =…

Q: Mark Welsch deposits $7,300 in an account that earns Interest at an annual rate of 8%, compounded…

A: Compound = Quarterly = 4Present Value = pv = $7300Interest rate = r = 8 / 4 = 2%Time = t = 1 * 4 = 4

Q: An entity took UAH 100,000 loan for 5 at 26% of annual interest rate. Interests are paid annually. A…

A: In an annuity due scheme, the periodic payment is made at the beginning of the period. First, we…

Q: 8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded…

A: Balance after three years = Amount Deposited x etr where t= period r= rate of interest

Q: An investor deposited OMR 9,000 into an account paying 8% annual interest compounded quarterly. (Use…

A: The simple interest and the compound interest are the two important methods for calculating 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.