YOU TOOK A LOAN OF 100,000 DOLLAR AT AN INTEREST RATE 12% PAID MONTHLY FOR 15 YEARS PMT , PRICIPLE FOR THE FIRST TWO MONTHS , TOTAL INTEREST

Q: You plan to deposit money for 4 consecutive years so that you can withdraw $50,000 twelve years from…

A: Future value (FV) speaks to the expected worth of an venture or cash flow at a particular future…

Q: Rm 700 invested every month into an account that pays 5% compounded annually for 18 months.…

A: Effective Rate- Any rate that is compounded annually is called an effective rate.Nominal rate- Any…

Q: You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year loan has…

A: Assumption: It is assumed the given situation is in monthly compounding. The question gives the…

Q: You were just informed of the interest rate on your student loan. It is stated as 0.50% per quarter.…

A: Quarterly interest rate = 0.50%Compounding frequency, m = 4The effective annual interest rate is

Q: Required information You were just informed of the interest rate on your student loan. It is stated…

A: The nominal interest rate (or money interest rate) is the percentage increase in money you pay the…

Q: Biden has purchased a new piano for $5,000. He made a downpament of $500. He paid the balance by a…

A: Loan is the debt borrowed by the financial institute. Monthly payment (Pmt) Formula:…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: The computation of net amount is as follows:Hence, the net amount of funds from the loan is $511560.…

Q: For Problems 17-24, assume you get a 30-year $90,000 mortgage loan at 7.25% interest. 17. Calculate…

A: Note: : We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: A lender providing a loan of S5.5 million requires semi-annual payment of interest at a nominal rate…

A:

Q: Calculate the monthly payment for the indicated loan. You borrow $8000 at an APR of 3% and repay the…

A: Amount borrowed, pv $   8,000APR, rate3.00%No. of payments, nper36We can use PMT(rate, nper, pv)…

Q: Derek plans to buy a $28,355.00 car. The dealership offers zero percent financing for 56.00 months…

A: Future value A financial concept called future value (FV) determines the worth of an asset by using…

Q: Sue is currently paying off two loans that were taken out at the same time. Loan A is for $10,000…

A: The excel formula can be referred below

Q: Problem #3: A loan of amount $19316.84 is repaid in 15 annual payments beginning 1 year after the…

A: The Effective Annual Rate (EAR) considers the effect of compounding on the nominal interest rate,…

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A: Step 1:

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Q: Using the information provided please show all work and formulas in excel ! Suppose that you have…

A: Incremental borrowing cost refers to an expense that is incurred for taking an extra amount of loan…

Q: If Emily deposits $500 every other year into her bank account that pays 1.5% annual interest,…

A: Compound = Every Other year or once per 2 year = 0.5Payment = p = $500Time = t = 10 * 0.5 =…

Q: uppose a homeowner has an existing mortgage loan with these terms: Remaining balance of $150,000,…

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Q: (2 points) Results for this submission Entered 9.6 The answer above is NOT correct. Answer Preview…

A: Step 1: Given,  borrowed amount of loan = $200, repaid amount = $216 in the time period of 9…

Q: Mrs. Bowe wants to receive $600 at the end of the next 3 years and a additional $3500 at the end of…

A: Payment = p = $600Time = t = 3 YearsFuture Value = fv = $3500Interest Rate = r = 4%

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A: Cost of Credit is the amount of cost which is incur on amount used for a given period of time.It can…

Q: What payment needs to be made semi-annually at the end of each period to pay off a loan of $392864…

A: Amortization of a loan refers to the process of spreading out the repayment of a loan over a set…

Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…

A: The amount of discount depends on the period and interest rate and amount of the loan taken and cash…

Q: Suppose a household will earn $1M during its working life (the present) and zero during its…

A: We can determine the amount the household can consume in retirement using the formula below:

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.