You need to have $31,000 in 5 years. You can earn an annual interest rate of 3 percent for the first 3 years, and 3.6 percent for the next 2 years. How much do you have to deposit today?   rev: 01_30_2018_QC_CS-115320, 02_01_2018_QC_CS-115650   $25,421.63   $26,432.03   $26,278.95   $26,740.87   $25,975.44

Q: You have a loan of $44354 and will repay the loan over 5 years at 2% interest under fixed payment…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: Question 6 What is the amount you can withdraw at the end of 20 years if you make $1,500 monthly…

A: Future value of ordinary annuity = A x [(1+i)^t - 1] / iwhereA = Periodic cash flow = Monthly…

Q: What is your monthly loan payment? What is your expected balance after five years (60 months)?

A: Purchase Price64900Down Payments10000Loan Amount54900No.of Payments84Monthly Rate0.0033Monthly…

Q: If you need to withdraw $5,000 a year for years 1 - 8 and the required rate of return is 9%, how…

A: INFORMATION: RATE 9% YEARS 8 PMT (MONTHLY WITHDRAW) $5,000 FUTURE VALUE $0

Q: What rate of interest will you have to get per year if you would like to buy a car for $68,500 at…

A: Rate of interest is the percentage of return that is expected to be generated by investing in the…

Q: ou invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the…

A: Future Value Future value is what a sum of money invested today will become over time, at a rate of…

Q: Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually).…

A: Given: Present value = $1,000 Years = 4 Interest rate = 8%

Q: You need to have OMR 15000 in five years to payoff a home loan. You can invest in an account that…

A: Given:

Q: You deposit $725 today in a savings account that pays 6% interest, compounded annually. How much…

A: Future value, or FV for short, is a term used in finance to describe the estimated monetary value of…

Q: Present Value of an Annuity-If the interest rate is 12%, how much would you have to put in the bank…

A: Interest rate = 12%Term = 5 YearsAnnual payment = $100

Q: bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of…

A: The effective annual interest rate is a crucial concept in finance that is used to describe the true…

Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The given problem is calculated using Excel. Interest amount = Opening balance X interest rate…

Q: What amount today

A: Step 1: Given Value for Calculation Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = r =…

Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…

A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…

Q: You want to buy a house and will need to borrow $175.000 The interest rate on your loan is 4.93…

A: PMT is often used in financial formulae relating to loans, mortgages, annuities, and other financial…

Q: We Pay Insurance Company will pay you $1,575 each quarter for 25 years. You want to earn a minimum…

A: The concept of time value of money will be used here. This concept states that worth of money…

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Number of period is 4 (2 x 2).

Q: How much will you owe at the end of 10 years and a month, if you decide to pay your yearly bonus at…

A: Here, Loan Amount$355,000.00Time Period in years15APR5.50%Compounding Period (Weekly)52Yearly Bonus…

Q: If you wish to withdraw the annual payment series in the figure below, how much do you need to…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: your given the following information about a home loan: loan amount 300000 number of years 25 years…

A: As per the Given Informatin we have, Loan= 300,000 Interest Rate Given=7% Upfront Rate=3% Total…

Q: Suppose you buy car for $67,000 today with an interest rate of 12% over 5 years what is your monthly…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: If $35000 is put in a savings account paying interest of 5% compounded annually, what amount will be…

A: The future value of the invested amount is determined after compounded the interest accrued with the…

Q: How much will you owe at the end of 10 years and a month, if you decide to pay your yearly bonus at…

A: Here, Loan Amount$355,000.00Time Period in years15APR5.50%Compounding Period (Weekly)52Yearly Bonus…

Q: Jabari Williams wants to have $112,000 in his account exactly 20 years from today. The account earns…

A: Future value required=$112000Period=n=20yearsInterest rate=r=8%

Q: How much money would you need to deposit today at 7% annual interest compounded quarterly to have…

A: Given: Future Value of deposit "FV" = P16000 Annual interest rate = 7%  Number of compounding "m" =…

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: 7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying…

A: Introduction: Future value can be referred to as the value of an underlying asset or security at a…

Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…

A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =…

Q: QUESTION 10 Suppose you deposit $5,000 a year at the end of each year for 10 years. You earn 4.2%…

A: Future value is the value of asset or investment, made for the number of period at equal interval at…

Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…

A: Using excel PV function

Q: if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount…

A: Future value of money refers to the value of money on a particular date in the future. In other…

Q: You deposit $3000 each year into an account earning 7% interest compounded annually. How much will…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: To establish a revenue stream for your retirement, you deposit $89000 in an account with a nominal…

A: Information Provided: Initial Deposit = $89,000 Monthly payments = $311.50 Interest rate = 4.20%…

Q: You bought a house for $500,000 with a 30 year bank loan that has quarterly payments at an interest…

A: The objective of this question is to calculate the remaining balance on a loan after a certain…

Q: If you would like to have $ 10,000 after 8 years, how much money should you deposit now if the…

A: Given:

Q: Al an interést rate of B% per year, the amount you must deposit in your retirement account for years…

A: Retirement account can be defined as an account which is opened for the purpose of retirement…

Q: Required 1 Calculate the future value. On January 1, 2020, $30,000 is deposited into a savings…

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

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.