Q: A bank pays one percent interest on savings account four times a year. What is the actual annual…
A: Interest rate is charged by the lender for using its money.
Q: Suppose that you saved $4,700 at the beginning of the year and that at the end of the year your…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Why would a bank lending officer be interested in thecash flow statement of a company that is…
A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…
Q: When wealth increases, the supply of loanable funds demanded for loanable funds decreases; increases…
A: Loanable fund market consists of supply and demand of loanable funds. The supply of loanable fund…
Q: Mary takes out a loan for $1000 at a simple interest rate of 5% for a period of 3 years. Calculate…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Think about the primary purpose of amortization schedules and post your thoughts on how society…
A: The primary purpose of an amortization schedule is to provide a detailed breakdown of how a loan…
Q: If a lender makes a simple loan of $800 for 4 years and charges 3%,then the amount that the lender…
A: The objective of the first part of the question is to calculate the total amount that the lender…
Q: For the following questions, choose the letter of the best answer (Show any work and explanations):…
A: Using straight-line depreciation,, 99, 254); position: relative; display:…
Q: If a lender makes a simple loan of $400 for 5 years and charges 7%, then the amount that the lender…
A: The objective of the first part of the question is to calculate the total amount that the lender…
Q: Q4. A man borrowed $85000 at 7% to purchase a flat. The loan is to be repaid in equal monthly…
A: here we calculate the amount paid on first and second payment so here by using the given information…
Q: Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of…
A: Interest rate: The real interest rate is the rate of interest that is being calculated in an economy…
Q: In simple interest, the interest for the current period is computed based on the amount (principal…
A: When some amount is deposited in the bank as a principal, the bank pays interest to the savers…
Q: 1. You have borrowed $40,000 at an interest rate of 11%. Equal payments will be made over a…
A: We can use the following formula to calculate the annual payment:Annual payment = [principal * (1 +…
Q: What is an interest “reference rate,” and how is it used to set rates for individual borrowers?
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: You have 1 account: The balance owed is $405 and a $1500 credit limit. What is your…
A: The debt-to-credit ratio is estimated as a percentage of total available revolving credit which an…
Q: If a borrower took out a loan 3 years ago with a fixed interest rate of 1.5%, who is the winner…
A: Inflation is a broad term, but in economics, it specifically refers to a general increase in the…
Q: True or False: The time value of money describes how compound interest helps money grow over time. O…
A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…
Q: Give typing answer with explanation and conclusion Michael can afford car payments of $275 a month…
A: The demonstration of borrowing is the demonstration of getting or getting something, strikingly…
Q: What part of a savings investment should not be spent? O Interest Base amount All of the above O…
A: Spending is the process of buying goods, service and other things. For example, consumer would like…
Q: In contrast to revolving credit, installment credit loans allow a borrower to do which of the…
A: A credit loan is a type of loan granted to an individual or a business with the understanding that…
Q: Cole’s Home Solutions policy is to charge 2¼% interest each month on unpaid credit balances. What…
A: Monthly interest rate is 2.5% per month. Then the interest rate can be calculated as follows.…
Q: c. Small businesses use these to raise funds for investment. Loan | Stock | Bond d. This is also…
A: Loan: A loan is an agreement between borrower and lender that implies the borrower is borrowing a…
Q: 1) for a period of two years. During the first year, the quarterly payment is for $300, while in the…
A: Given information: First-year quarterly payment = $300 Second-year quarterly payment = $400 Interest…
Q: What is the relationship between a person’s need for payday lending and their income volatility?
A: Introduction In order to satisfy your immediate financial needs until the arrival of your next…
Q: how does evonomics play a role in policy or public discussion related to having a car
A: A central bank refers to a financial institution that acts as the primary authority responsible for…
Q: What factors make up the total demand for loanable funds? The total supply of loanable funds. Please…
A: As economies emerged, goods and services were produced that required machinery and labour. With time…
Q: What type of annuity where the periodic payments (withdrawals) continue indefinitely? a. Annuity…
A: Disclaimer: - Since you asked for multipart question, we are solving only first 3 subparts as per…
Q: 2. You owe your best friend P2,000. Because you are short on cash, you offer to repay the loan over…
A: The amount that a lender adds to the principle to compensate a borrower for using assets is known as…
Q: If you deposited $5,000 in your saving account three years ago and you will collect them now as…
A: Deposited amount 3 years ago = 5000 Value of the deposit now = 5995.08 Number of years = 3
Q: Why is it important to begin saving for the future at a young age? o to make it so you can blow all…
A: Savings is that part of income which is not consumed and kept aside for use in the future.
Q: Which of the following is a personal financial asset? a. A payday loan b. A mortgage loan c. A…
A: A financial asset is a tradable instrument or other tangible property that represents a legal claim…
Q: . If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal…
A: Here we calculate the following by using the given information and conclude the answer so the…
Q: The Loanable Funds Theory suggests that the market interest rate is determined by the factors that…
A: The Loanable Funds Theory is an economic concept that explains how interest rates are determined in…
Q: The table below shows Demand and Supply for loanable fund at given time. Real interest rate…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A British government perpetuity pays £4 a year forever and is selling for £48. What is the interest…
A: An infinite stream of income is carried by a fixed income security known as a perpetuity. A…
Q: Helen borrows $1000. To repay the amount she makes 12 equal monthly payment of $93.12 1- determine…
A: When borrowing money, like in Helen's case, the repayment amount usually includes both the principal…
Q: 1. A bank is offering to sell four-month certificates of deposit for $ 4,926. At the end of four…
A: A bank is offering to sell four-month certificates of deposit for $ 4,926. At the end of four…
Q: For an $8 fee, a loan shark says that you can immediately borrow up to $400 for one month (For…
A: The interest rate that is stated or quoted on a loan, investment, or other financial instrument is…
Q: You have $5,000 on a credit card that charges a 23% interest rate. If you want to pay off the credit…
A: Interest rate is the amount charged by the lender from the borrower for the use of its money.
Q: What are the factors affecting the amount of money paid for the use of borrowed capital or the…
A: In a capital market, organizations raise capital/funds by borrowing money from the market…
Q: How Dalio’s concept about borrowing from one’s future self might change a decision one might make…
A: Debt is when one party borrows something from another, most commonly money. Many businesses and…
Q: Steve promises to pay Amanda $2,000 in four years and another $3,000 four years later for a loan…
A: A loan could be considered as a swap of buying power over time between lenders and borrowers. The…
Q: Which of the following is the MOST detailed representation of a person's credit worthines A B credit…
A: The ability of a borrower to pay back debts and their propensity to miss payments on loans or other…
Q: Fred takes out a loan for $1300 at an interest rate of 5% for a period of 5 years. Calculate the…
A: Interest, in the context of finance and economics, refers to the cost of borrowing money or the…
Q: Given demand and supply for loanable fund Market at given time period in the table below Real…
A: Given Interest rate Quantity of loanable fund demanded (billion $) Quantity of loanable fund…
What are the factors affecting the amount of money paid for the use of borrowed capital or the income produced
by the loaned money?
Discuss and illustrate the different types of annuity.
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- What are the factors affecting the amount of money paid for the use of borrowed capital or the income produced by the loaned moneyDefine interest and explain how interest rates vary based on risk, maturity, loan size, and taxability.hazel borrowed 100,000 and must repay a total of 130,000 exactly two years later. How much is the interest paid? what is the interest rate?
- Give an example of a loan repayment plan?Which is a more risky loan for the lender a secure loan or an unsecured loan? Why?Whenever the interest charge for any interest period (a year, for example) is based on the remaining principal amount plus any accumulated interest charges up to the beginning of that period, the interest is said to be: a. effective interest b. compound interest c. simple interest d. nominal interest e. none of the choices
- In contrast to revolving credit, installment credit loans allow a borrower to do which of the following? A to borrow funds continually B C D to borrow funds interest free to borrow funds one time to borrow funds tax freeFred takes out a loan for $1300 at an interest rate of 5% for a period of 5 years. Calculate the total amount that Fred must pay back at the end of the loan period. Round your answer to two decimal placesDiscuss the difference between ordinary annuity and annuity due and how it affects the value of an investment
- What is a simple interest rate?You decide to purchase a house and need a $160, 000 mortgage. You take out a loan from the bank that has an annual interest rate of 6%. What is the monthly payment to the bank to pay off the loan in 20 years? ( i need final answer only no need of all calculation)What is Effective interest?
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)
![Economics Today and Tomorrow, Student Edition](https://www.bartleby.com/isbn_cover_images/9780078747663/9780078747663_smallCoverImage.gif)