Wills loaned Audrey Chin $16,000 to open Snip Its Hair Salon. After 6 years, Audrey will repay Lee with 8% interest compounded quarterly. How much will Lee receive at the end of 6 years? Amount of Loan $ 16,000.00 Length of loan 6 Interest 8% Compounded quarterly Required:

Q: If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how…

A: Future value (FV) = $1,000,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% Period =…

Q: Fractional Year Investment Return. Jill placed ​$11,000 in a 60​-day CD that offered an annualized…

A: given information  jill placed 11,000 CD time period = 60 days  annual return interest = 2.3% =…

Q: Find the simple interest on a $2000 investment made for 5 years at an interest rate of 8% / year.…

A: Simple interest refers to the method of calculating interest earned on an investment where for each…

Q: Farmer Ty needs to finance a machinery purchase of $70,000. His lender requires a down payment of…

A: Loan installment is that amount which is paid every month/ every year depend upon the terms which is…

Q: Bill Padley expects to invest $13,000 for 8 years, after which he wants to receive $16,468.40. What…

A: Investment amount (PV) = $13,000Amount received after 8 years (FV) = 16,468.40Number of years = 8…

Q: Jonny Walker purchases his first condominium downtown Toronto by obtaining a $200,000 mortgage loan…

A: A financial table that shows how a debt will be repaid over time is called an amortization schedule.…

Q: What is the total amount Bae will have to repay for his ​$24 comma 19924,199 student loan if the…

A: The objective of the question is to calculate the total amount Bae will have to repay for his…

Q: Triangle Pediatrics is faced with multiple investment alternatives that pay interest as indicated in…

A: Future value is the value of the sum compounded to future date. formula: FV =PV×1+RMM×N where, FV=…

Q: Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent nominal…

A: Fisher Equation defines the relationship between the real rate of interest and the nominal rate of…

Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Complet parts (a) through…

A: A loan is a financial arrangement in which one party, typically a lender or a financial institution,…

Q: Maria Quick made an investment of $13, 695.17. From this investment, she will receive $1, 600…

A: An annuity is a financial product that involves a series of payments made at regular intervals over…

Q: After graduating from UCF, you plan to purchase a small condominium for $100,00o. You will be…

A: Purchase Price = 100,000 Down Payment = 10%× Purchase Price = 10%×100,000 = 10,000 Loan Amount =…

Q: Carla Vista Company is considering investing in an annuity contract that will return $34,500…

A: Present Value of Investment = Annual Return x Present Value of Annuity Factor

Q: Investment A: 5 % annual interest, compounded quarterly. Investment B: 4.7% annual interest,…

A: The more is compounding of interest more is effective interest rate and more is interest accumulated…

Q: Based on the information below, if Jason starts saving immediately for the down payment on his…

A: The FV of an investment refers to the cumulative value of its cash flows at a future date assuming…

Q: Steven Garcia invests $14,404.31 now for a series of $2,700 annual returns beginning one year from…

A: Formulae: PV=PMT×(1−(1+r)−n)/rWhere:PV = Present Value (the initial investment)PMT = Payment per…

Q: You're deciding between two investments. Both earn 8%. Investment A pays you 8% annually on a…

A: First we need to use the compound interest formula below to calculate investment value after 5…

Q: A borrower is faced with choosing between two loans. Loan A is available for $76,000 at 6 percent…

A: ParticularsLoan ALoan BLoan amount$76,000.00$76,000.00Interest rate6%7%Number of…

Q: Considering the following information, what is the net benefit if the borrower refinances the loan…

A: Loan refinancing is the process of taking out new loans to pay off old outstanding loans. Borrowers…

Q: Consider the following investment opportunity: Capital Investment (End of Year 0) Expenses (per…

A: Because you have asked question with multiple parts, we will only solve first 3 parts as per policy…

Q: A borrower is faced with choosing between two loans. Loan A is available for $89,000 at 6 percent…

A: Interest rate refers to the cost which is associated with the loan amount that should be given by…

Q: Mr Ridge range for a mortgage loan for 65% of the 2.5 million purchase price of a home. The monthly…

A: Loan amount = 65% of purchase price of a home = 0.65×2500000 = 1,625,000 Number of monthly payment…

Q: Helen Quick made an investment of $20,542.75. From this investment, she will receive $2,400 annually…

A: Step 1: The calculation of the rate of interest AB1Present value $ 20,542.75 2Annual receiving $…

Q: Bill Padley expects to invest $15,000 for 5 years, after which he wants to receive $22,039.50. What…

A: Given:- Present Value (PV) = $15,000- Future Value (FV) = $22,039.50- Number of periods (n) = 5…

Q: What is the total amount Bae will have to repay for his ​$24 comma 19924,199 student loan if the…

A: The objective of the question is to calculate the total amount Bae will have to repay for his…

Q: Find the interest Thomas has started working, and he will be putting $100 aside, at the end of every…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: A borrower can obtain an 80 percent loan with an 9 percent interest rate and monthly payments. The…

A: The incremental cost of borrowing is the cost needed to pay over and above the cost of using one…

Q: (Loan amortization) To buy a new house you must borrow $140,000. To do this you take out a $140,000,…

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.