What is the annuity payment?

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay…

A: Future value refers to the compounding the future cash flows with the interest rate compounding for…

Q: f you deposit OMR 20555 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Deposit amount (PV) = OMR 20,555 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…

Q: When you purchased your house 4 years ago, you took out a 300000, 30 year FRM loan at 7.5%. You also…

A: Mortgage loans are secured loans and these loans make buying of home easy because paid by equal…

Q: suppose you put $1500 into your IRA this year. You do not make any additional contributions to the…

A: given, pv = $1500 r=10.5% n = 42 years

Q: future value of your money in 17 years.

A: Future Values: Future value is the value that will be increased or decreased after a particular…

Q: You want to buy a $219,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Given: Particulars Amount Cost of house $219,000 Down payment 5% Years 30 Interest rate…

Q: Jayjay purchased a motorcycle and paid the down payment of P30,000. The monthly payment is P3650…

A: Future value of annuity ascertains the future value of the asset, loan, or a project for a string of…

Q: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: Use the formula for the value of an annuity to solve:To save for retirement, you decide to deposit…

A: The future value of the annuity is the total value of all the payments which occurred regularly at a…

Q: A couple wants to purchase a house. Suppose they invest $500 per month into an ordinary annuity. How…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: If you deposit OMR 8415 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and…

A: Negative amortization means interest on the loan is not paid due which the loan amount tends to…

Q: After making twentieth payment of $582.17 on your car loan, you wanted to find out how much is left…

A: In this we need to calculate the present value of loan payment made and how much is balance payment.

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: How much money must be deposited today in order to withdraw P500  monthly for 5 years if interest…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You would like to purchase a motorcycle that costs OMR 6800. You planned with your banker to collect…

A: Formula: Future value = (Amount*((1+rate)^years -1)/Rate

Q: Answer the following problems. Show your solutions. Annuity 1. How much money will you accumulate by…

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

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay…

A: A= $220 R= 1% N= 60

Q: (Annuity number of periods) You've just bought a new flat-screen TV for $3,600 and the store you…

A: Annuity refers to the sum of amount paid or received being compounded at a given rate of interest…

Q: You decide to quit using your credit card and want to pay off the balance of $11,800 in 5 years.…

A: Given Amount of debt is $11800. Term is 5 years Interest rate is 16.05%

Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment

Q: If you deposit OMR 20555 in your account in a bank. Suppose the bank pays 8% compound interest…

A: We need to use future value formula given below to calculate future value of deposit FV =PV(1+i)n…

Q: ut an $8,000 car loan that calls for 7 annual payments of $2,400 each.  What is the interest rate?

A: Annual payments are made for payment of loan which carry the interest and payment of principal…

Q: PLEASE ANSWER IT ASAP FOR AN UPVOTE. I REALLY NEED IT NOW. 2. Jake deposits 1200 pesos at the end of…

A: Future value of annuity is the future value of all the stream of cash flows.

Q: If you deposit OMR 16830 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Amount of Deposit = OMR 16830 Interest Rate = 8%  Years =5 Interest Rate half yearly (r)=8%/2 =4%…

Q: David needs R30835,42 to buy a second hand trailer. How long will it take him to save towards this…

A: In this we need to calculate number of weeks required to achieve that.

Q: Jack and Jill need to save $8600 toward a new car. How long will it take them if they save $210 a…

A: An annuity is a phenomenon of making periodic payments for a fixed interval of time at a specified…

Q: Suppose that you and your friend both need to borrow the same amount of money. You borrow money…

A: In compounding there is interest on interest also including the principal amount and due to which…

Q: You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Suppose you are in charge of annuities for a life insurance company. A customer comes in and wants…

A: Annuity amount =1,000,000 Lets assume Remaining Life =55 years Life in months =660 Interest rate 7%…

Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…

A: Loan amortization refers to the process of paying off a loan over time through regular payments that…

Q: ou want to buy a new car. You can afford payments of $400 per month and can borrow the money at an…

A: Using excel PV function

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Yearly annual income = $15,000 Interest rate = 4%   NOTE: As per our…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Annual income = $15,000 Interest rate = 4%   NOTE: As per our policy, we…

Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

Q: You buy a house and finance $250,000 at 4% per year. One loan is 30 years (360 monthly рayments) and…

A: Monthly payments is calculated by present value of annuity formula. r is annual percentage rate and…

Q: money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per…

A: Payments = $10,000 Interest rate = 2% Time period = 10 years

Q: The remaining balance of your car loan would be

A: Remaining balance is the unpaid portion on the loan. It is the amount of money not yet paid to the…

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Annuity is the regular payment to be made for specific number of years. There are two types of…

Q: You take a loan from a bank to buy a car with a value of 100000 for 5 years (60 months). You pay…

A: Loans are paid by the monthly payments that carry the payment for interest and payment for loan also…

Q: A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for…

A: (a) The amount borrowed by this person : Amount borrowed= $8000/(1.12) = 7142.85 (b) Credit Worth…

Q: (Annuity payments) To buy a new house, you must borrow $165.000 To do this, you take out a $165,000,…

A: Loan amortization refers to the systematic repayment of a loan over a specific period of time. It…

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.