Lydia purchased a $100,000 150-day T-bill when the prevailing yield on T-bills was 4.5%. She sold the T-bill 60 days later when the prevailing yield was 4.2%. What interest rate did Lydia earn during the 60-day period? (Round your answer to three decimal places.) Interest rate %

Q: 3) Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %

A: First we need to determine the loan amount. This can be determined with the formula below:In the…

Q: Marek is collecting simple interest on a $1,000 CD with an annual rate of 2.40%. What was his…

A: Principal = $ 1000 Annual interest rate = 2.40%

Q: Eleanor Shellstrop sells inventory in exchange for $1,000 today and $2,000 a year for 5 years (i.e.,…

A: Sells inventory in exchange today  $                                      1,000.00 Sells inventory…

Q: Determine the proceeds If the interest in advance is to be deducted for a loan worth P 250 000 due…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: A homeowner took out a 25-year fixed-rate mortgage of $85,000. The mortgage was taken out 10 years…

A: Mortgages are a type of loan that can be used to purchase or maintain a home, a plot of land, or any…

Q: al 7 TRY: Lili borrowed P68000 with interest 72% at the end 12 years. What amount should be paid for…

A: FV  = A × (1+r)n Where, Fv = future value A = Amount borrowed  r = interest rate n = time period.…

Q: Mrs Shiirley Abundo borrowed 20, 000.00 at 7.5% compounded quarterly at a certain cooperative. How…

A: Here, Borrowed Amount is 20,000 Interest Rate is 7.5% Time Period is 2 year Compounding Period is…

Q: Starting from today, Susan deposits $1500 into a saving account A at the beginning of every year for…

A: TVM states that the interest-earning capacity of money makes money earned today more valuable than…

Q: 4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Karen obtained a $36,000 loan at 3.5% compounded semiannually. a-1. What monthly payment will repay…

A: Here, Loan amount = $36,000 Interest rate = 3.5% compounded semi-annually Time = 8.5 years To Find:…

Q: Wade Ellis buys a new car for $16,882.14. He puts 10% down and obtains a simple interest amortized…

A: An amortized mortgage refers to a type of loan where the borrower makes regular payments over a…

Q: Trevor purchased a 90-day interest-bearing note at 4.80% p.a. that has a face value of $25,000.00.…

A: Solution:- When an interest bearing note is purchased, it provides interest to the holder. So,…

Q: Chandrika deposits $500 in an account paying an effective quarterly interest rate 2.01875%. Muhammad…

A: Present Value:  The present value (PV) is the present sum of the future payments. The future…

Q: Mark purchased a 90 -day interest-bearing note at 4.80% p.a. that has a face value of $5,000.00. a.…

A: a 90-day interest-bearing note is a short-term financial instrument that is used to raise funds.…

Q: (Loan amortization) On December​ 31, Beth Klemkosky bought a yacht for ​$70, 000. She paid ​$14, 000…

A: An amortized loan is a classic case of the PV of an ordinary annuity.The loan taken today [ PV] and…

Q: A homeowner took out a 20-year fixed-rate mortgage of $70,000. The mortgage was taken out 13 years…

A: Loan value = $70,000Number of years = 20 yearsRate = 7.45%Refinance charge = $1,500Mortgage was…

Q: Caridad borrowed $17,500 at 11% ordinary interest for 160 days. After 60 days, she made a partial…

A: The final amount is computed by adding the loan amount and interest due and then subtracting the…

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: nna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 20%…

A: We need to use loan amortization formula to calculate monthly payment. The formula is  PMT…

Q: 3. Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly…

A: Bonds are a representation of a promise to pay interest, typically every two years, and to repay the…

Q: Suppose Katy borrowed some amount of money for 98 weeks and Anastasia borrowed the same amount.…

A: In simple interest there is interest on the principal amount of loan only and there is no interest…

Q: Christine applied for a cash loan at PCG money lending company amounting to 100,000 pesos at 10.68%…

A: Cash loan (C) = 100000 pesos r = 10.68% n = 12 payments

Q: If Rita receives $36.44 interest for a deposit earning 6% simple interest for 10 days, what is the…

A: Interest received = $36.44 Interest rate = 0.06 or 6% Number of days = 10 Amount deposit = ?   In…

Q: Antonio borrows $2,428 from the bank for 5 years at an annual interest rate of 3.92% compounded…

A: Compound interest is the interest which is interest applicable on interest earned before.

Q: $5,000.00. 118 Round to the nearest cent p.a. al llas a lace val a. If she holds the note for the…

A: The security having short-term maturity with combined payment of principal and face value at…

Q: Curtis buys a piece of commercial property for $230,000 He is offered a 20-year loan by the bank at…

A: A mortgage refers to a covered loan that has been borrowed for the purchase of a property. The…

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: If Rita receives $36.44 interest for a deposit earning 6% simple interest for 10 days, what is the…

A: To calculate the deposit amount we will use the below formula   Deposit amount = I/(r*d/365) Where I…

Q: A homeowner took out a 15-year fixed-rate mortgage of $155,000. The mortgage was taken out 8 years…

A: Mortgages are a type of loan that can be used to purchase or maintain a home, a plot of land, or any…

Q: 1. Lynn deposits $683.09 at the beginning of each quarter for three years in order to accumulate…

A: Here, Quarterly Deposit (PMT) is $683.09 Time Period (N) is 3 years Accumulated Amount (FV) is…

Q: Meghan purchased a 90-day interest-bearing note at 5.20% p.a. that has a face value of $5,000.00. a.…

A: The security having short-term maturity with combined payment of principal and face value at…

Q: Ms. Dory asks Axis Bank to lend her Rs. 100 today. She says she will not be able to pay anything at…

A: The future value is a financial concept that represents the value of a sum of money at a specified…

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

Q: Alexei finances her purchase of a $900 television. Her one-year loan has a fixed annual interest…

A: We need to use loan amortization formula to calculate monthly payment. M =P*rn1-1+rn-n*t where…

Q: A debtor owes Ryan the following sums, due without interest: Php 1000 due at the end of 2 years and…

A: To solve this question we first need to discount both the payments to PV using the formula below: PV…

Q: 1. The Villa Pawnshop charges 24% simple interest on the loan of all items pawned to them. If Rose…

A: Introduction: When you payment on a simple interest loan, the first portion of the payment is…

Q: A homeowner took out a 30-year fixed-rate mortgage of $120,000. The mortgage was taken out 15 years…

A: Mortgages are a type of loan that can be used to purchase or maintain a home, a plot of land, or any…

Q: Interest Earned. Lisa is depositing ​$3,500 in a​ six-month CD that pays 3.73​% interest. How much…

A: 3.73% is annual rate of interest   use formula Deposit* interest rate*6/12

Q: Luis Rivera has taken out a mortgage loan for $225,000 at 4% for 5 years. What will be the total…

A: A mortgage is a type of loan that is typically used to purchase real estate, such as a house or a…

Q: 1. On January  1,  2008, Gabe borrowed P12,000 and agreed to repay it with P4,473.60 interest. If…

A: Here amount borrowed  = 12,000 and interest amount = 4473.60

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.