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: A. B., ) How much will you have in the account in 7 years? 5.) How much interest will you have…

A: Since you have asked multiple questions, we will answer the first question. If you want any specific…

Q: Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is simple interest that means there is interest on the principal amount only and…

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: None

A: Given information: Annual deposit (PMT) = $910 Number of year (n) = 6 Interest rate (i) = 4% or 0.04…

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

A: Data given: Principal: $6500Rate: 7%Compounded: quarterlyTime: 4 years

Q: You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2…

A: Given information: Initial value of investment (V0) = $8,500 Annual interest rate for first "eight"…

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: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The given problem is calculated using Excel. Interest amount = Opening balance X interest rate…

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: 6. Find the future value on an investment of $12,000 for seven years at 6% annual interest…

A: Future value is value of the investment on a future date based on a interest rate  Given PV= 12000…

Q: Mark Welsch deposits $7,100 in an account that earns interest at an annual rate of 4%, compounded…

A: Present Value = pv = $7100Compound = Quarterly = 4Interest rate = r = 4 / 4 = 1%Time = t = 2 * 4 = 8…

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: Calculate the amount of interest you'll have at the end of the indicated period. 22) You invest…

A: Simple Interest is method of computing interest where compounding is not done. Compounding refers to…

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: Kingsley Toyota borrowed $175,000 from a local bank. The loan requires Kingsley to pay 15 equal…

A: The present value of all monthly payments and present value of balloon payment should be equal to…

Q: Assume you have invested $10,000 into a bank at an interest rate of 6% per year. The bank has…

A: in this we have to calculate present value of both option.

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: Example 1: Finding Future Value A person deposits $5000 into an account which pays interest at a…

A: Present value interest factor for 10 years = (1 + Rate )Number of years  = (1+ 0.08)10 = 2.158924

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: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions): Assets…

A: Interest on income refers to the return to be earned by the investors over the amount of investment…

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: 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: 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: 2) If you deposit $3 account balance How many yea

A: The question is based on the concept of Financial Management.

Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…

A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =…

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: Directions: Identify if the problem involves simple interest or compound interest. Then, solve the…

A: The simple interest implies the interest levied on the principal amount only. The formula of the…

Q: uppose you deposit $1,681.00 into an account today that earns 11.00% p.a. It will take years for the…

A: Future value of the money is the amount deposited and the amount of compounding interest accumulated…

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: 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: 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: 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: Sophia invests $8,059 in a savings account that offers an annual percentage rate (APR) of 6.5%.…

A: Compounding is an important aspect of the concept of time value of money. When you invest a sum of…

Q: If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year…

A: The effective annual rate of the investment is 11.50%. So, 3rd option is the correct…

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.