Single-payment loan repayment  Personal Finance Problem   A person borrows ​$310 that he must repay in a lump sum no more than 9 years from now. The interest rate is 9.3​% annually compounded. The borrower can repay the loan at the end of any earlier year with no prepayment penalty.   a.  What amount will be due if the borrower repays the loan after 2 ​year? b.  How much would the borrower have to repay after 3 years​? c.  What amount is due at the end of the ninth ​year?

Q: A man borrowed P 300,000 from a lending institution which will be paid after 10 years at an interest…

A: Given that: Principal amount = P30,000 Time Period = 10 years  Interest rate =12 %    Formula A = P…

Q: C) A homebuyer approached the bank for a home loan of RO 87,000. The bank has approved the loan…

A: As per company policy it is only possible to solve the first question.

Q: Mr Banda is struggling to repay his loan of K400,000 with payments of K7,200 made monthly in arrears…

A: Loan amount is K400,000 Monthly payment is K7,200 Time period  6 years.   After restructuring:-…

Q: Dr Musonda is struggling to repay his loan of K600,000 with payments of K12,800 made monthly in…

A: The future value is useful to investors and financial planners, as they use it to estimate how much…

Q: ______5. Compounding quarterly means the interest period is  A. every year C. every 6 months  B.…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: 2. What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: A man loan an amount of P 100,000_at a commercial bank at 10% compounded_annually. How much is his…

A: loans are to be paid by equal monthly payments and these payments carry the payment of interest and…

Q: 3. A savings account pays 5% per annum interest compounded continuously. The initial deposit is Qo…

A: Accumulated amount when compounded continuously is Q=Qoert, where Qois initial deposit, t is time,…

Q: A bank loans a family $90,000 at 4.5% annual interest rate to purchase a house. The familyagrees to…

A: Information Provided: Present value of loan = $90,000 Interest rate = 4.5% Term = 15 years Interest…

Q: e Rapinder obtained a mortgage loan was for $245,000 less a down payment of 20%. The loan is to be…

A: The loans are paid by the monthly payments and these are equal monthly payments that carry the…

Q: 1)If $1180 accumulates to $1566.75 in four years, six months compounded semi-annually, what is the…

A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

Q: Sally Johnson loaned a friend $10,000 at 15% interest, compounded annually. The loan will be paid in…

A: Interest rate=15%Inflation=3%Loan amount=$10000

Q: 19. You borrow $1,500,000 to purchase a small apartment building. The lender charges you a 2%…

A: Present value of annuity Annuity is a series of equal payment at equal interval. With annuity (PMT),…

Q: If you borrow $3,000 at 6% simple interest per year for seven years, how much will you have to repay…

A: Amount borrowed=$3000Interest rate=6%Number of years=7

Q: Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per…

A: 1) Quarterly payment (Q) = $6000 r = 6% per annum = 1.5% quarterly n = 8 years = 32 quarters

Q: 3. Mr. Bainto has a loan that is to be amortized by paying monthly payments of P 3,200 for 1 year.…

A: Monthly payment (P) = P 3,200 Number of payments (n) = 6 Interest rate = 12% Monthly interest rate…

Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…

A: Amount at the end of 4 years = 24000 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…

Q: Hamilton wants to accumulate $170.000 at the end of 4 years. It starts quarterly payments in a bank…

A: in this you have to find out future value FACTOR and find quarterly payment.

Q: 1.Suppose that a client borrows a loan amount of R50,000 at annual interest rate of 10% compounded…

A: Interest is the periodic obligation of the borrower to pay towards the sum borrowed. It is computed…

Q: The Bull bank has a $100,000 30 year loan that was made 6 months ago to a homeowner who is making…

A: An annuity is a financial term that shows a sequence of cash flows with an equivalent periodic…

Q: 5. Juan takes out a 3-year multi-purpose loan for P200,000 from a loaning institution. The annual…

A: The annual interest rate is 12%. So, the monthly interest rate will be 12%/12months = 1%. Monthly…

Q: A young couple buying their first home borrow $90,000 for 30 years at 7.6%, compounded monthly, and…

A: Solution: As per given - A young couple buying their first home borrow $90,000 for 30 years at 7.6%,…

Q: 1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the…

A: Interest: It is the amount that is paid by the borrower to the lender for taking a loan. It is paid…

Q: 8 Kai has an interest only loan for $105,000.00 maturing in 6 years. The interest rate on the loan…

A: Loan amount principal (FV) = $ 105000 Deposit rate = 6.250% Annual effective  rate (r) =…

Q: 11. Mr. Agustin applied for a loan from a bank that gave him an option to pay 3,500 monthly for two…

A: 11) Monthly payment (M) = 3500 n = 2 years = 24 payments r = 7.5% per annum = 0.625% per month Let's…

Q: 1. A friend borrows an amount of P1,000. In 4 years, the money become P2,500 compounded monthly.…

A: Borrowed amount = P 1000 Future value = P 2500 Period = 4 Years Period in months = 4*12 = 48 Monthly…

Q: 6. I plan to borrow $350,000 from a bank to buy an apartment. The interest rate is a nominal 4%…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: 9. A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is…

A: Par value of borrowing = Php 10,000 Interest rate = 15% Net Borrowing = Par value*(1-Interest rate)…

Q: f you took a home mortgage loan of $150,000 for 30 years at 8.4%, compounded monthly, your monthly…

A: Computing the unpaid balance at the end of two years: The unpaid balance is the present value of…

Q: Finance A borrower takes out a 30-year mortgage loan (with monthly payments) for $300,000 with an…

A: A discount point: A discount point is earned by paying 1% of the mortgage value. It typically…

Q: (c) Alata Kwaku borrowed ¢2,130 from his uncle and promised to pay him ¢2,720 after 2 years. With…

A: c) Given, Future value of borrowed amount = ¢2,720 Present value borrowed amount = ¢2130 number of…

Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys…

A: Loans are to be paid by the periodic payments that carry the payment for the principal amount and…

Q: Question: Thank you Suppose that you have borrowed $250,000 in the form of a 30-year loan with an…

A: Note - Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Find the amount of money owed at the end of 3 years if $7,500 is borrowed at 5.5% per year…

A: Loan amount (PV) = $7500 Interest rate = 5.5% Quarterly interest rate (r) = 5.5%/4 = 1.375% Period =…

Q: I wish to borrow $400,000 to buy a house. If the current interest rate on the loan is 4.8% per…

A: In mortgage loan the monthly payments are amortized over the loan period. The monthly payment here…

Q: A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for…

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

Q: The other photo is the example of the format of the supposed answer (solution and Excel). Thank you…

A: Information Provided: Loan amount (P) = 1,400,500.00 Interest rate (j) = 5+1/8% = 5.125% Years (t)…

Q: Hamilton wants to accumulate ₺ 35000 at the end of 4 years. It starts quarterly payments in a bank…

A: The question is based on the concept of annuity method of cash flow for future value approach.…

Q: You have just borrowed $100,000 to buy a condo. You will repay the loan in equal monthly payments of…

A: a. Calculate the monthly interest rate as follows: Monthly interest rate is 0.75%

Q: 1  Borrow $178,000 at 5.25% for 30 years 2  Borrow $178,000 at 4.00% for 15 years What are the 2…

A: Calculation of Payments and Total Interest Paid for 2 Mortgages:Assuming both the mortgages is paid…

Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys…

A: Formula: Loan amount = Total purchase amount - Down payment amount Down payment amount to be…

Q: Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and is due in 3…

A: 1. Calculate the simple interest by the simple interest formula. Where 'P' refers to the principal…

Q: 1) Five years ago, you borrowed $250,000 for a ten-year period at a fixed interest rate of 9% p.a.…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: A man takes out a $300 loan with a compound interest rate of 10 percent. The interest is assessed…

A: Amount of loan in case of compound interest is calculated as: = Principal * (1+rate)^time

Q: How much should the semiannual payment be in order to pay off the debt in 25 years?

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Hamilton wants to accumulate ₺ 100.000 at the end of 4 years. It starts quarterly payments in a bank…

A:

Q: 1. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20%…

A: Gross loan (Par value) = P 100,000 Interest rate = 20% Period = 1 Year Interest amount deducted =…

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.