V5.Loan amount $75000 interest rate - 3.15 %   if I earn a salary of $40000 with 4% growth for 10 years . how long will it take to pay of the loan

Q: 1. Using the APR table, how much interest would be charged for a $10,000 loan at 12.5% for 3 years?…

A: Since, there is no information regarding the loan is compounded as annually or monthly is mentioned,…

Q: Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start…

A: Installment is the amount of periodic payments a borrower has to make in order to repay his loan in…

Q: 21. You borrowed 75 percent of a new car priced at $20,000 with an interest rate of 7 percent…

A:

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: Problem 2: You get a $250,000, 20-year 2/1 ARM at 5% with zero points. a. what are the initial…

A: Loan:A loan refers to a financial arrangement in which one party, typically a lender such as a bank…

Q: 8. Using an annual interest rate of 9%, how long will it take a deposit of $1,500 to grow to $3,000,…

A: Deposit amount (PV) = $1500 Future value (FV) = $3000 Interest rate (r) = 9%

Q: 16. What monthly payments are required to acquire $50,000.00 in five years if the interest is…

A: Using PMT function in excel

Q: None

A: Step 1: Given Value for Calculation Compound = Monthly = 12Monthly Payment For Year 1 = p1 =…

Q: 2. A consumer loan has a scheduled payment of P 2,000 every quarter for 3 years. If money is worth…

A: Quarterly payment (P) = P 2000 Period = 3 Years Number of payments (n) = 5 Interest rate = 9%…

Q: LO2 The interest rate on a $100,000 loan is 6% compounded monthly. How much longer will it take to…

A: compound = monthly = 12 Present value = pv = $100,000 Interest rate = 6 / 12 = 0.5% Time in months =…

Q: You have a student loan of 40,0005s that you want to repay in 10 years interest rates are at year…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Assume you graduate from college with $32,000 in student loans. If your interest rate is fixed at…

A: Loan amortization refers to the systematic payment of principal and interest repayment of loan in…

Q: Suppose that you borrow a certain amount of money at 4% effective and you will repay the loan by…

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

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: None

A: To find out how much you need to deposit today to have $17,500 in 10 years with a monthly interest…

Q: 4. You plan to borrow $5001.00 now and repay it in 25 years as equal annual payments that will be…

A:

Q: 18. You are borrowing $700,000 for 30 years at 6% annually. The lender is charging you a 2 point…

A: Effective interest rate simply means annual interest rate. It contrasts the interest rates of two…

Q: Question 11 What is the total amount you will have to repay for your $20,000 student loan if the…

A: Loan amount (PV) = $ 20,000 Annual interest rate = 5% Monthly interest rate (R) = 5%/12 = 0.416667%…

Q: Use the appropriate formula to find the amortization payment (in S) you would need to make each…

A: Monthly interest rate Loan amount PV = $8,500,Total number of payments Loan term t=5 years.

Q: Suppose you took out a 20 year mortgage for $280,000 with an APR of 2.772%, but you want to pay it…

A: A mortgage is a loan taken out to purchase or maintain a property. The loan is covered as the…

Q: Solve Problem 20.11 using Excel.

A: Loans refer to the amount that is borrowed on credit by the individual or the company from the banks…

Q: Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10…

A:

Q: QUESTION 3: TIME VALUE OF MONEY You plan to buy a car that has a total cost of RM80,700. You will…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: You get a $250,000, 20 year 3/2 ARM at 6% with zero points. a. what are the initial payments? b.…

A: The cost of borrowing money each year, including fees, is stated as an annual percentage rate…

Q: Annuity Present Value You are looking into an investment that will pay you $12,000 per year for the…

A: Present value is a financial concept that represents the value of a future sum of money in terms of…

Q: A debt of 25,000 dollars due in 4 years is to be repaid by a payment of 3,000 dollars now and a…

A: The concept of the time value of money states that due to the interest-earning capability of money,…

Q: Suppose that you wish to buy a new home that will cost you $400,000. You must put $80,000 down, and…

A: A mortgage is a loan that allows an individual to purchase a home or property. The borrower agrees…

Q: 8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you…

A: As per our policy, we only answer one question when many are given. Since no specific question is…

Q: You get a 25-year loan of Php150,000 with a 8% annual interest rate.  What are the annual payments?…

A: Annual payment of loan can be calculated by using this formula PMT =(PV*r)/[1-1/(1+r)n] Where PMT=…

Q: Assume you can obtain an annual interest rate of 12% compounding monthly.  You are going to invest…

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

Q: 4) You have a $3000 amortized loan that you will make monthly payments of $1200 to pay off (the last…

A: Loan amount = $3000Yearly payment = $1200Interest rate = 7.1%Period = 3 years

Q: If your credit card charge 20% compound monthly, a. If your current balance is $3000, how much…

A: a) Current balance = $3000 Interest rate = 20% compounded monthly Interest next month will be…

Q: Use the following information to answer the next 3 questions. $280,000 Loan Amount 30 year loan with…

A: To convert the time period in months, multiply it by 12 To convert interest monthly, divide it by 12…

Q: Q1. (10 marks) You are considering taking a housing loan. The loan amount is INR 40 lakhs. If the…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: 13. If you botrow $1823 and pay back $2,728 in three years, what annual rate of interest are you…

A: Time Value of Money is a fundamental financial concept that recognizes the idea that the value of…

Q: You plan to buy a car that has a total cost of RM80,700. You will make a down payment of RM8,070.…

A: Answer: Calculation of the monthly payment: Step 1: Calculation of the amount of the loan: Loan…

Q: 8- Suppose that you obtain a loan from a bank. The loan amount is 60.000 TL and has a 5 years…

A: To Calculate the annual interest rate on term deposit, first we have to calculate the Installment of…

Q: How much interest did you earn during the entire period of time?

A: Annuity is the deposition of a fixed amount at fixed interval of time over a specified period.…

Q: 3. Suppose you recently bought a house for R1 650 000 and secured a home loan from the bank, with an…

A: Note : As per HONOR code, we cannot provide solution for multiple questions. Here we are solving…

Q: 27.In a loan with 20% simple interest, the future amount is P2,000 more the principal after one…

A: Simple interest is quite simple there is no compouding of interest and there is no interest on…

Q: Suppose you have a student loan of S25,000 with an APR of 12% for 30 years. Complete parts (a)…

A: Loan amount (PV) = $ 25000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 30…

Q: years) will it take Michael Garbin to pay off a $5000 loan with monthly payments of $137.04 if the…

A: In add on interest whole interest is added one time to loan and monthly payment is calculated.

Q: 8. Suppose that you want to take a five-year loan of $80,000. The interest rate is 9% per year, and…

A: Loan Installment is that amount which is paid by the borrower to lendor till the time of repayment…

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.