Ten years ago, Jane deposited $5,500 into her savings account. Five years later, she added an additional $2,500 to her account. During the first 5 years, her account earned an interest rate of 6.5 percent compounded annually, while the last 5 years saw her account earn 5.0 percent interest compounded annually. How much money does Jane have in her account today?

Q: Nicole is diligent and, starting on her 18th birthday, she saves $1,000. She continues her annual…

A: Annual savings = $1,000Number of savings, n = 8 (from 18th to 25th birthday)Interest rate, r =…

Q: At age 18, Susan did nothing. She waited until she was 28 to start depositing $2000 per year at the…

A: Annuity, A = $ 2,000Interest rate, r = 12%Number of annuities = n = 65 - 28 = 37

Q: Twelve years ago, Pat and Mike took out a $115,000 loan for 30 years at 9.3% interest. Their monthly…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Stephen has $11,200 in the bank. The account will earn 2.8% in simple interest for the next 5 years.…

A: Simple interest is the method used to charge the interest on the principal amount for a given period…

Q: Michael and Barbara Garfield invested $6,600 in a savings account paying 6% annual interest when…

A: In the given question, $ 6,600 is deposited in savings account at the time of birth of their…

Q: How long (in years) will it take for her investment to amount to $6,000?

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

Q: Roger just deposited $12,000 into his account at Market Place Bank. The bank will pay 3.2 percent…

A: in this we have to find out simple interest and compounding interest and than find out interest on…

Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Eugene began to save for his retirement at age 26, and for 10 years he put $ 425 per month into an…

A: Here we have to use the concept of future value to determine the retirement amount.  The amount…

Q: Exactly six years ago, Jay started investing $10,500 per year in an account that earned 5.00% p.a.…

A: To calculate how much Jay will have in his account exactly seven years from today, we can break down…

Q: Jennifer Nelson deposited $500 into a savings account earning 3%, compounded semiannually. After 5…

A: Principal = $500 Interest = 3% (compounded semi annually) n=2 (semi-annually) t= 5 years   Formula…

Q: Fifteen years ago, you deposited $15,400 into an account. Eight years ago, you added an additional…

A: Deposited $15400 15 years ago. Deposited $6000 8 years ago Interest for First 7 years is 10 %…

Q: Thomas and Dorothy Garfield invested $5,900 in a savings account paying 5% annual interest when…

A: The concept of time value of money will be applied here.As per the concept of time value of money…

Q: Matthew and Kimberly Garfield invested $7,300 in a savings account paying 5% annual interest when…

A: Step 1:We have to calculate the total saved amount in the savings account on the 16th birthday. For…

Q: Michelle Payne deposited $4,000 in a savings account paying 6.25% simple interest. How long (in…

A: Calculation of Simple Interest The purpose to provide the interest for the loan is repayment with…

Q: Suppose 10 years ago your father deposited $ 25,000 in an account earning 4.6%. Every year you…

A: First step is to compute the future values of withdrawals staarting 9 yrs ago till today by applying…

Q: Kerry invests $234 in a savings account that earns 2.1% compounded annually. Andy invests $234 in a…

A: Formulas: Future value = Present value *(1+rate)^years

Q: Michael and Barbara Garfield invested $5,300 in a savings account paying 5% annual interest when…

A: The FV of the investment refers to the combined worth of the cash flows of the investment at a…

Q: Eugene began to save for his retirement at age 27, and for 14 years he put $ 275 per month into an…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Since the birth of her granddaughter, 19 years ago, Holly has deposited $150 at the beginning of…

A: Given, The monthly deposit is $150. Interest is 3.25% for first 7 years and 3.75% for the next 12…

Q: Susan Myer had invested $2500 in an ABC bank Certificate of Deposit when she inherited trust funds…

A: Calculation of Compound Interest Rate per monthly   Formula  r = n[(A/P)1/nt-1] Where r = Annual…

Q: Since the birth of his granddaughter, 18 years ago, Kristen has deposited $300 at the beginning of…

A:

Q: Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Since the birth of his granddaughter, 20 years ago, Jason has deposited $200 at the beginning of…

A: 1. FVA after 7 years   = P * (([1 + I]^N - 1 )*(1+I))/I, where P is the payment amount= 200 I is…

Q: awn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of…

A: Here, Annual Payments is $2,000  Time Duration of Investment is 10 years Interest Rate is 8%

Q: cecilia invested $5000 in an account four years ago. Today her account has a balance of $6200. Given…

A: Present value=$5000Future value=$6200Period= 4 yearsPeriod= 16 quarters

Q: a. What was the accumulated value of the RESP at the end of 8 years? $0.00 Round to the nearest cent…

A: Future Value: It represents the future worth of the present sum of the amount for a period of time.…

Q: Katelyn put $12,000 into a savings account three years ago. It paid 6% interest in the first year,…

A: Amount deposited = $12,000Interest rate :   for first year = 6%  for second year = 7%

Q: Judy recently purchased her first home for $220,000. She made a down payment of $20,000, and…

A: First we need to calculate PV annuity factor for loan to calculate monthly payment. Since payment is…

Q: Your sister just deposited $11,500 into an investment account. She believes that she will earn an…

A: Value of sister's investment account in 7 years is calculated using following equation Future value…

Q: Two years ago my daughter was born. On the day she was born I put $4000 into an account for her. The…

A: Future worth is the worth of current amount at some future specified date considering compounding…

Q: Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in…

A: Formula: FV=PV×1+rt

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.