Suppose that you had deposited $125 in a bank account for each of the last 5 years. What annual interest rate is attached to this account if there is now (at the end of the fifth year) $758.92 in the account? A) 8% B) 10% C) 12% D) 14% E) 16%

Q: Jack opened an account 15 years ago and deposited $12,000 into it. The account now has $20,000 in…

A: Compound interest formula: A=P×1+rnnt where, A = final amountP = initial principal balancer =…

Q: 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account…

A: Future value of an initial deposit paying simple interest is calculated using following equation…

Q: Create an interest calculator that takes input of initial balance and calculates the account balance…

A: Investment refers to employing capital funds to generate capital gain yields. The investment…

Q: 4. If $2,000 is invested in an account that earns 8.5% interest compounded annually for 5 years,…

A: Interest refers to the cost of borrowing funds or money from other parties. Interest usually is of…

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: You have invested money in a savings account that pays a fixed monthly interest on the account…

A: A Compound interest where the interest earned on the principal amount earn interest as per the…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: You put $280 in the bank for 5 years at 8%. A. If interest is added at the end of the year, how…

A: Future value is directly proportional to the interest rate. If the interest rate is higher the…

Q: Suppose you invest $1,200 in an account paying 5% interest per year. a. What is the balance in the…

A: With compound interest, more interest can be earned compared to simple interest. This is because…

Q: If you make quarterly deposits of $425.00 into an ordinary annuity earning an annual interest rate…

A: Annuity is the series of equal cash payments over the period.

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

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: If you deposited $1,500 into a savings account today, which pays 5% interest and left it alone for 7…

A: INFORMATION: RATE 5% YEARS 7 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $1,500

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Compound = monthly = 12Interest rate = r = 5.5 / 12 %Time = t = 11 * 12 = 132Future Value = fv =…

Q: Problem 1. Answer the following questions on recurrence relations. a) A person deposits $5000 in an…

A: A recurrence relation is an equation that defines a sequence based on a rule that gives the next…

Q: Suppose you deposit $2606.00 into an account today. In 7.00 years the account is worth $3969. The…

A: Present Value = pv = $2606Time = t = 7 YearsFuture Value = fv = $3969

Q: 1. Assuming that you deposited $100 today in a bank at 6 percent annual interest rate. After four…

A: The objective of the question is to calculate the future value of a single sum of money invested…

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: 7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying…

A: Introduction: Future value can be referred to as the value of an underlying asset or security at a…

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: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

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…

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.