Using 360 days as the denominator, calculate interest for the following notes using the formula I = P × R × T. Round your answers to the nearest cent. Principal Rate Time Interest $4,200     6.00% 30 days $fill in the blank 1      1,000     7.50 60   $fill in the blank 2      4,400     8.00 120   $fill in the blank 3      950     6.80 95   $fill in the blank 4      1,250     7.25 102   $fill in the blank 5      2,400     7.00 90   $fill in the blank 6

Q: Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest…

A: Simple interest is the method of calculating interest when the interest earned does not get…

Q: Find the value of the annuity and the interest. Round to the nearest dollar. ------)) A A=…

A: To find the value of the annuity, we can use the formula for the future value of an ordinary…

Q: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

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A: simple interest is the interest calculated only on principle amount and it does not calculate…

Q: For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate…

A: Annuity payment refers to the amount that is paid at every period including interest and principal…

Q: How do I calculate the discount factor on a zero interest bearing note? 600,000 12% interest for 3…

A: The formula for calculating the discount factor is given below:

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank -Interest is still calculated as Principal x Interest x Frequency of…

Q: simple interest The interest on a loan of P 2,500 is P 165.00 .  If the rate of interest is 6 %,…

A: The time on the loan can be calculated with the help of simple interest equation

Q: You are told the effective interest rate on an account is 3.9%, if the interest is compounded…

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Q: Find the loan principal. Rate Time (Days) Interest Principal 12% 140 $11.40 ? The loan principal is…

A: Principal is a value which is deposited for a period and interest is computed on this value. It is…

Q: For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate…

A: Future value is an estimate of future cash value that may be received at a future date, discounted…

Q: Complete the following without using Table12.1. Note: Round the "Total amount" and "Total interest"…

A: The question is based on the concept of Financial Management. Amount is the sum of the interest and…

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…

A: We use Pv function to calculate present value of annuity

Q: Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest…

A: Calculation of annual interest rate with an ordinary annuity: Excel workings:

Q: 4. What difference does the interest rate (and compounding) make? You have a $10 000 debt. Calculate…

A: Effective Rate is the rate which takes in to account the compounding effect of the interest. It is…

Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and final…

A: The process of amortization is used to account for the progressive reduction of a liability or to…

Q: Record the adjusting entry for interest. 3. Record the repayment of the note and payment of interest…

A: The notes payable is a financial instrument that is issued by the borrower. In this, the borrower…

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

A: Given, Monthly payment is $1773.60 Annual tax is $6,513 Annual insurance is $2,186

Q: Find the simple interest. Principal Rate Time in Months $2000 4% 9 The simple interest is $ (Round…

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Q: Find the simple interest. Principal Rate Time in Months $10000 8% 9 The simple interest is $ (Round…

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Q: How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?…

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Q: Use the compound interest formula to solve. (Round your answers to the nearest cent.) Time Period…

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

Q: se the exact interest method (365 days) and the ordinary interest method (360 days) to compare the…

A: Interest = Principal * rate * time where, Principal = $186,500 Rate = 5.75% time = 51 days

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A: To calculate the value of the account at time t = 4 without using Python, we'll perform the…

Q: You invest $8,500 in a savings account that pays interest of 4.8% compounded monthly. To the nearest…

A: The future value function is applied when the investor wants to know how much he/she will get after…

Q: Complete the following without using Table12.1. Note: Round the "Total amount" and "Total interest"…

A: The future value (FV) represents the value of a current asset at some point in the future based on…

Q: Use the exact interest method (365 days) and the ordinary interest method (260 days) to compare the…

A: Any sum of money an investor puts into the various alternatives available in the market is an…

Q: Find the value of the annuity and the interest. Round to the nearest dollar.   A=P(1+r)t−1r…

A: The value of the annuity is the value of regular payments in the future at a given interest rate. An…

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.