Mark and John started investing at the same time. Mark makes payments of $20 at the end of each week into an investment that earns 6.25% compounded weekly. John made a single deposit into an investment that earns 6.25% compounded annually. a) At the end of 3 years, what is the future value of Mark's investment? b) John's investment has the same future value as Andy's in 3 years. How much principal did John invest?

Q: every month in a savings account that earns 3.20% compounded monthly. a. How much did Brian have in…

A: A series of regular fixed periodic payments made at each interval is annuity. The broad…

Q: Luke deposited $3500 into a savings account that earns 5.50% annually but is compounded 4 times per…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: ang borrowed $5200 from his friend to pay for remodeling work on his house. He repaid the loan 8…

A: Compound interest refers to the method of calculation of the interest earned on an investment where…

Q: Starting on the day Thomas was born, his mother has invested $50 at the beginning of every month in…

A: Future value:The future value of payments represents the accumulated value of periodic investments…

Q: Tom borrowed 300,000 for his son Remy's law school tuition at the University of Missisippi. Tom…

A: We need to use Simple interest formula to calculate maturity value of loan. A =P(1+r*t) where A=…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: At the end of 5 years, Tom earned $60 on an investment that had earned 4%. How much was the original…

A: It is assumed the given interest is compounding interest, compounded annually.

Q: Fernando invested money in a 3-yr CD (certificate of deposit) that returned the equivalent of 6.5%…

A: A Certificate of Deposit (CD) is a type of savings account offered by banks and other financial…

Q: Your cousin's student loan totaled $45,000 when he graduated. After making payments for the last 2.5…

A: The current loan amount would depend upon the interest rate, the time period, and the monthly…

Q: Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as…

A: Loan:A loan is an amount of money given by one party typically a financial institution to another…

Q: A person invested two amounts in a bank for a full year. From the first, the rate is 6% annually,…

A: Let the 1st amount be x and 2nd amount be y

Q: When Gerardo was born, his grandparents started a savings account for him with a beginning balance…

A: The objective of the question is to find out how much of the money in Gerardo's account was earned…

Q: how much was in the account immediately after his 35th deposit if: a)the account earned annual…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay…

A: Borrowed amount = $10,000Interest rate for first 2 years = 4%Interest rate for next 5 years = 3%To…

Q: Jim invests $15,000 today into an account, If the amount in the account accumulates to $17,364.37 at…

A: The rate of interest can be computed with the help of future value function.

Q: Katie invested $191 for 16 months in a bank and received a maturity amount of $209.50. If she had…

A: Question 1:Interest earned = Maturity amount - Invested amountInterest earned = $209.50 - $191 =…

Q: Frank invests $ 4500 dollars into an account earning interest compounded quarterly. After 10 years…

A: given, pv = $4500 fv = $5600 n =10 years m =4 (quarterly compounding)

Q: Bill invests his savings into two accounts, one paying 6% simple interest per year and the other…

A: Let the investment in 12% simple interest paying account be a  Therefore amount put in lower…

Q: Hassnein recently deposited $34,000 in a savings account paying a guaranteed interest rate of 5…

A: Savings account:A savings account is a financial product offered by banks and credit unions that…

Q: Kevin received a $1800 bonus. He decided to invest it in a 3-year certificate of deposit (CD) with…

A: In the given question we require to calculate the future value of investment after 3 years and…

Q: Austin invested $13,000 in an account paying an interest rate of 63% compounded monthly. Easton…

A: The idea of the time value of money (TVM) holds that a quantity of income is valuable greater at the…

Q: Three years ago, ZYX deposited $2,590 in an account that has earned and will earn 8.60 percent per…

A: P = Initial deposit = $2,590 r = Annual interest rate = 8.60% = 0.086 n = Number of years = 6 The…

Q: hannon made periodic deposits into a savings account at the end of every month for 2 years. The…

A: The future value of monthly deposit includes the principal amount deposited and interest accumulated…

Q: Frank invests $ 2500 dollars into an account earning interest compounded quarterly. After 13 years…

A: Future Value = Present Value * (1+r)^n Where, r =rate per period n = no. of compounding period i.e.…

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: As per Bartleby honor code, when multiple questions are asked, the exe=pert is required only to…

Q: Starting on the day Kelly was born, her mother has invested $50 at the beginning of every month in a…

A: The objective of the question is to calculate the future value of a series of monthly deposits for…

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.