Sylvie Cardinal bought a business for $45 000. She made a down payment of $10 000 and agreed to pay the balance by equal payments at the end of every three months for eight years. Interest is 8% mpounded quarterly. a. What is the size of the quarterly payments? b. What will be the total cost of financing? c. How much will Sylvie owe after five years?

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: Bryan received a loan of $42,000 from the bank at 3.25% compounded monthly. If she had to repay $350…

A: Given that: Interest rate r = 3.25% per year = 0.2708% per month Period n =3 year= 36 months…

Q: months over 3 years at 7% per year compounded quarterly. much is Ana's quarterly payment?

A: Formula to calculate quarterly payment under loan: Annuity amount Loan…

Q: Sally borrows $25,000 for a loan, and she repays the loan by making quarterly end-of-quarter…

A: The principal amount is $25,000.The quarter payment is $650.The maturity of the loan is 15

Q: Ms. Anderson plans to purchase a home for $300,000. She intends to pay 20% of the purchase price as…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Jordan received a $30,200 loan from a bank that was charging interest at 3.50% compounded…

A: The bank loan means the amount that is borrowed from the bank. The bank given loan to people after…

Q: ane needs $30,000  to buy a new car in four years. How much should she deposit at the endof each…

A: We will use the concept of time value of money here. The concept of time value of money states that…

Q: Prisha received a loan of $25,000 from the bank at 3.50% compounded monthly. If she had to repay…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 60 months…

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

Q: Shayla deposited $4,000 into an account earning 5% interest per year, compounded every 6 months.…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Alice Reed deposits $16,500 in Rye Bank, which pays 10% interest compounded semiannually.  What will…

A: In this we have to calculate the future value of the present value.

Q: Abigail received a loan of $41,000 from the bank at 5.75% compounded monthly. If she had to repay…

A: Using Excel

Q: Helen contributed $500 at the end of every month for the past 5 years into an RRSP account, earning…

A: Annuity means series of no. of finite payments which are same in size and made in equal intervals.…

Q: Clara borrows $41,000 today at 2.9% per year compounded quarterly, to start her own buisness. she…

A: Given, Loan amount (p) = $41,000 Interest rate (r) = 2.9% Number of compounding periods (m) = 4…

Q: (a) What will be the monthly payment? Susan will pay $ each month. (Round to the nearest cent as…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: PV(loan amount) = 150,000I/Y (interest rate) = 7%PMT (periodic payment) = 25,000

Q: Polly purchased a car. She paid P150,000 as down payment and pays P5,500 at the end of each month…

A: Polly purchased a car and paid ₱ 1,50,000 as the down payment and thereafter pays ₱ 5500 at the end…

Q: While buying a new car, Austin made a down payment of $1,000.00 and agreed to make month-end…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Michelle bought a new car for $⁢34,000. She paid a 20% down payment and financed the remaining…

A: A loan refers to a contract between two parties where an amount is forwarded by one party to the…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $244 per month…

A: Future value refers to the future worth of a present sum. Annuity refers to the periodic payment…

Q: While buying a new car, a down payment of $1,20 agreed to make month-e of $300.00 for the next 4…

A: Vehicle are purchased by paying by small amount of down payments and remaining payments are made by…

Q: Ma. Nochna Pula borrowed $10,000 at 6% annual compound interest. She agreed to repay the loan with…

A: Annual payment can be calculated using the present value of annuity formula. Present value of…

Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: The number of years over which she can repay the loan amount can be calculated using the NPER…

Q: A home buyer buys a house for $225, 000. She pays 20% cash, and takes a fixed - rate mortgage for…

A: The objective of the question is to calculate the biweekly mortgage payment for a home buyer who…

Q: Anthony planned to buy a house but could afford to pay only $9,000 at the end of every 6 months for…

A: Here,Down Payment $   30,000.00Semi Annual Payment $     9,000.00Interest Rate5.70%Time Period in…

Q: Jenna bought a new car for $⁢28,000. She paid a 20% down payment and financed the remaining balance…

A: A loan refers to a contract between two parties where money is given by one party to the other on…

Q: Mrs. Jenny bought an upper-class lot costing 1.23 Million $. The car agency asked for a downpayment…

A: Cost of upeer class lot is 1.23 million $ Downpayment is $320,200 Payment after one year is $624,400…

Q: Rose has an opportunity to invest in an income account at 12% compounded continuously. The amounts…

A: given information   interest rate = 12% compounded continously  time period = 8 years

Q: While buying a new car, Alexander made a down payment of $1,100 and agreed to make month-end…

A: Given data:Down payment = $1,100Monthly payment (PMT) = $290Interest rate (r) = 4% compounded…

Q: finance a vacation in 4 years, Elsie saves $370 at the beginning of every six months in an account…

A:

Q: how much will she have in her account after 11 years

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Theresa borrowed $7258.00 compounded monthly to help finance her education. She contracted to repay…

A: Given:

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $551 per month…

A: Given, Amount of deposit is $551 every month Interest rate is 3% compounded monthly Term is 5 years

Q: o finance a vacation in 2 years, Elsie saves $380 at the beginning of every six months in an account…

A: Future Value of Annuity Due:It is the future value of annuity payments made at the beginning of each…

Q: 5. Jenna received a 15 year loan of $375,000 to purchase a house. The interest rate on the loan was…

A: Loan amount  $                               3,75,000.00 Interest rate 5.10% compounded…

Q: Jenelle bought a home for $370,000, paying 18% as a down payment, and financing the rest at 4.6%…

A: Purchase price of House = $370000 Down Payment = 18% Financing for 30 Years Rate = 4.6%

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.