What will your monthly payment be if you have a 5% interest rate and a term of 20 years? How much will you pay for your college education? How much of that is interest? If the yearly payment is $17000

Q: You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q:

A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

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A: The objective of this question is to calculate the present value of future cash flows. The present…

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A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

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A: Present Value = pv = $20,000Number of Payment = n = 5Payment = p = $6000

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A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

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A: Payback period is the no. of years required to recover the initial amount invested.

Q: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

Q: You've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…

A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…

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Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

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A: The present value of monthly payments should equal the loan value.

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Q: What would your investment account be worth in 23 years if you currently have $7,000 saved and plan…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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A: Future value refers to the value of cash flows or annuity at defined future date. It can be…

Q: If I can invest R120 today and I want to have R500 in my account 4 years from today at what interest…

A: Amount invested Today=120Year-2 , Amount invested=100Year-4, Amount Received =500Time period=4…

Q: You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15…

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A: Approach to solving the question:Please see attached photo for detailed solution. Thank you.Detailed…

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A: Compound Interest- Compound interest is interest that is added to the principal amount each year,…

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A: 1. Calculating the Monthly Interest RateThe annual interest rate is 5%. To find the monthly interest…

Q: You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment.…

A: PRESENT VALUE   The current Value of Future Cash flow is called the Present Value Present Value is…

Q: How much money would you have to deposit EVERY year for 10 years into an investment earning 5%…

A: Data given: FV=$ 50,000 n=10 years Rate=5% (annual compounding)   Required: Amount to be deposited…

Q: What’s the present valu

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

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Q: Assume you graduate from university with a $20,000 student loan. If your interest rate is fixed at…

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A: Ordinary annuity are the payments which are made at the end of the period.

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A: Home value = $205,000 Down payment = 0.10 (10%) Monthly interest rate (r) = 0.00345833333333333…

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.