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: Derek plans to buy a $31,184.00 car. The dealership offers zero percent financing for 55.00 months…

A: Discounting is a technique which is used to compute the present value (PV) of future amounts by…

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: You have an outstanding student loan with required payments of $600 per month for the next four…

A: With number of compounding in a year (m) and Annual percentage rate (APR), the effective rate of…

Q: 2. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…

A: Solution Concept Simple interest rate is the rate that does not have the effect of compounding To…

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: A washer dryer combination can be purchased from a department store by making monthly payments of…

A: Given: Monthly payment = $62.25 Interest rate = 24% Years = 3

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: Jesse received a loan of $26,000 from the bank at 5.50% compounded monthly. If he had to repay $300…

A: First we need to find the total tenure of loan. Loan amount = PV of instalments PV = E(1-(1+r)-p)/r…

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 interest and principle for a $1,000,000 loan with the rate of 5% that has to be repaid…

A: Constant Amortisation loan Method: A loan in which the yearly dollar amount of amortization is kept…

Q: for the last fifteen days?

A: A promissory note is a negotiable instrument. It is a document written and signed by the payer, it…

Q: Problem III: Suzan Long is considering buying a home for $350,000. (a) If she makes a down payment…

A: Loan amortization is a method of paying a loan in equal payments over a defined period of time. The…

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: Your company is planning a) 4-years loan of $4 million, zero interest b) 28-years loan of $4…

A: Given, We have to solve the interest subsidy worth?For a) 4-years loan of $4 million, 0 interestFor…

Q: The nominal interest rate is 8% compounded semiannually. What amount will need to be deposited ev to…

A: There is a need for financial planning for the future requirements based on time value of money and…

Q: 10. Simple-interest loan $1800 @ 8% for 12 months with a monthly payment of $156.60. After 8 months…

A: Simple Interest is calculated as: = Principal * Rate * Time  Here, principal is the opening balance…

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,…

Q: help  please answer in text form with proper workings and explanation for each and every part and…

A: Step 1:

Q: If you have $10,000 that you want to save for 3 years, which of the following banks would you choose…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

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: A person took a loan of $250,000 and has to pay it back in monthly payments for 30 years starting…

A: Loan Amortization refers to the equal and periodic payment of the loan principal amount spread over…

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,…

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

Q: 5.1 Frasier needs £250,000 to set up his business. Bank A is willing to lend him the money under the…

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

Q: You owe $6000 on your Chase card, and it has an APR of 21.99%. In the mail, you get an offer from…

A: Credit card outstanding: When a credit card balance is not paid off within the grace period, it…

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%

Q: Hand-to-Mouth (H2M) is currently cash-constrained, and must make a F its suppliers, or take out a…

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:

Q: 5. Evaluate This time, you are now challenged to take this quiz. A. Solve for the following problems…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

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.