THE SHORTHOLDER BANK PAYS 5.60%, COMPUNDED DAILY (BASED ON 360 DAYS), ON A 9-MONTH CERTIFICATE OF DEPOSIT P20,000 YOU WOULD EXPECT TO EARN AROUND____ IN INTEREST

Q: You borrow $280,000 at 4.00% per year and will pay off the loan in equal payments starting one year…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrwer needs…

Q: A loan for $53,000 is made for 10 years at 8 percent interest and no monthly payments will be due…

A: Time, the value of money describes that the money present today is more valuable than the money will…

Q: Suppose you want to invest php 10, 000.00 in the bank forG years. The Land bank of the Philippines…

A: solution given Amount available (principal) 10000 Compound interest rate 12% Time…

Q: A bank is offering to pay you $1000 at the beginning of each month for the next 10 years. The…

A: Payment per month (PMT) = $1,000Timing = BeginningAnnual interest rate is 6%. So, monthly interest…

Q: Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000…

A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%

Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…

A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…

Q: Assume that you will need 60million shillings in your specialsaving account five years fromnow, to…

A: Future value is the value of current asset at a particular date in the future when it has earned…

Q: You have a student loan of 40,000$ that you want to repay in 10 years. Interest rates are at 6% per…

A: Since an amount is paid annually over the loan period, it is a type of annuity. The present value of…

Q: You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly…

A: Loans are paid by equal fixed periodic payments that carry the payment of interest and also payment…

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: Comprehensive problem) You would like to have $52.000 in 16 years To accumulate this amount, you…

A: The FV of an investment refers to the combined value of its cash flows at a predetermined future…

Q: Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but…

A: Since the interest is compounded quarterly, you need to account for the compounding frequency when…

Q: 11.  The price of Microsoft is £30 per share and that of Apple is £58 per share. The price of…

A: Solution:- Portfolio return means the rate of return earned on the investments in the portfolio. We…

Q: You are buying a house for $280,000.00 with a downpayment of $56,000.00. The loan will be paid back…

A: Loan amount = Cost of House - Downpayment To calculate the concluding amount of loan, excel formula…

Q: Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years…

A: Annual payment=$20000Quarterly payment=20000/4=$5000Discount rate=12%Growth rate=g=4%Deferred…

Q: A loan of $77,800 is due 10 years from today. The borrower wants to make annual payments at the end…

A: Loans are financial agreements between a lender and a borrower, where the lender provides a certain…

Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…

A: Equity in a home refers to how much of that home's value a person has already invested in it.

Q: Consider a five-year floating rate loan with principal of $10 million and quarterly payments based…

A: Given information: 5 year floating rate loan of $10 million

Q: An annuity offers to pay £8,700 per year for 20 years, and the nominal annual bank interest rate is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: How large must each annual payment be if the loan is for $60,000? Assume that the interest rate…

A: Given: Loan = $60,000 Interest rate = 12% Year = 5

Q: Suppose that you can pay 15,000,000 VND per month for the next 30 years. What is the largest loan…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Suppose you invest $210,000 in an annuity that returns constant annual payments over 6 years, with…

A: We will apply the concept of time value of money in this case.In an annuity you make an initial…

Q: Compute the monthly payment on a $65,000 loanif the principal and interest are to be repaid in 84…

A: a) Loan amount (PV) of $65,000 needs to be repaid in (n) 84 equal installments at an annual interest…

Q: You are considering taking out a loan of $17,000.00 that will be paid back over 5 years with monthly…

A: Here,ParticularsValuesLoan amount (PV) $ 17,000.00Term of loan 5.00Number of months in a…

Q: A company can borrow $780000 for 5 years by issuing bonds, on which interest is paid monthly at = 8%…

A: The periodic cost can be found by using the PMT function where monthly rates, the number of months,…

Q: You are buying a house for $120,000.00 with a downpayment of $12,000.00. The loan will be paid back…

A: An amortized loan refers to a type of loan that is repaid over a set period through regular…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: Calculate the future value of $9,000 invested (single amount) for ten years in an account with an…

A: Information Provided: Present amount = $9000 APR = 6.3% Period of investment = 10 years   NOTE:…

Q: how much must you repay at the end of the 6 months?

A: Information Provided: Amount borrowed = $500 Interest rate = 6% Time = 6 months or 0.5 year…

Q: promises to quadruple your investment over a period of 15 years based on semi-annual compounding.…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: You pay off a $200, 000 loan at effective annual interest rate 10% by making interest payments each…

A:

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Semiannual interest rate (r) = 0.06 (i.e. 0.12 / 2) Number of deposits (n) = 20 Semiannual period…

Q: 2. Effective Annual Yield (EAY) and Effective Annual Rate (EAR) A. You plan to invest $10,000 for…

A: As you have asked multiple questions, we will solve the first question as per policy. Request you to…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: When a certain amount is deposited at a certain interest with compounding, the accumulated amount is…

Q: Suppose you invest $210,000 in an annuity that returns 6 annual payments, with the first payment one…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a.…

A: The term annual percentage rate (APR) describes the annual interest that is produced by a payment…

Q: You intend to save for retirement over the upcoming 30 years by allocating R850 monthly to a stock…

A: Variables in the question:Monthly savings to a stock account=R850Monthly savings to a bond…

Q: 42 98 19

A: The incremental borrowing rate is the interest rate a borrower would pay to borrow money to fund an…

Q: a) GCB has offered to grant you GHC50,000 loan with an annual interest of 24% compounded monthly to…

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

Q: You have borrowed $60,000 from al interest rate of 12% per year, compou monthly. You are to repay…

A: In this we need to calculate present value factor monthly and find out monthly payment.

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.