Your father obtained a car loan payable in 5 equal payments of Php 16,700 at the end of evry month for the next 5 years with an annual rate of 9.5%. How much was he able to loan? Construct an amortization schedule.

Q: Anna received a loan of $29,000 at 4.5% compounded semi-annually. He had to make payments at the end…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: months over 3 years at 7% per year compounded quarterly. much is Ana's quarterly payment?

A: Formula to calculate quarterly payment under loan: Annuity amount Loan…

Q: a. Kim pays ₱2,000 every two months to settle his obligation for two years at 8% compounded…

A: a. The present value can be calculated using the PV Function.  b. The monthly payment can be…

Q: a. Calculate the size of payments. 0.00 Round to the nearest cent b. Fill in the partial…

A: Monthly payments refer to the specified amount that a borrower is required to repay on a loan each…

Q: Sarah graduated from college with $29000 in student loan debt. The annual rate on her loans is 6…

A: Calculate the total interest paid over 5 years:Total interest paid over 5 years = Principal *…

Q: John borrows money from a bank. Interest rate is 9.5%pa compounded half yearly. He has

A: Interest rate=9.5%Compounding semi annually.

Q: In return for a loan, Mr. Domingo promises to pay P15,000 at the end of each 3 months for two years.…

A: Amount repaid quarterly is P15,000 Time period is two years Interest rate s 10% converted quarterly…

Q: How much money must be deposited today in order to withdraw P500  monthly for 5 years if interest…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: 2. The Nedtran family decides to save money for a vacation in 3 years. They purchase an annuity with…

A: Semiannual payment (A) = P 10000 Interest rate = 9% compounded quarterly n = 3 years = 6 payments…

Q: Anna deposits at the beginning of every month of P1,500 into an annuity for 6 years. If she wishes…

A: In this we need to calculate present value factor monthly to get the interest rate.

Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…

A: The question is based on the concept of amortization of mortgage loans. A mortgage loan is paid back…

Q: Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for…

A:

Q: Fred and Ethel are going to take out a business loan on which they will make annual payments of…

A: An amortized loan is a type of loan where the borrower makes regular fixed payments over the loan's…

Q: John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the…

A: Step 1: Given data :Loan amount (P): $125,000Annual interest rate (r): 11%Amortization period (n):…

Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…

A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…

Q: A boy borrows 25000 from father. His father lends him the money, on the condition that he would be…

A: Here, Borrowed Amount is 25,000 First year monthly payment is 500 Interest Rate is 5.2% Compounding…

Q: If I purchased a car loan for Php 800,000 with an annual rate of 15% for 5 years, how will I able to…

A: Loan amount (P)= Php 800,000 Annual rate (R)= 15%  Time (T)= 5 years S.I. and C.I.=?

Q: A bank offers a 10% interest to be compounded annually. How much should a teacher deposits if he…

A: Kindly refer the image attached below for solution.

Q: Determine whether it is simple ordinary annuity, general ordinary annuity, or deferred annuity. 1.…

A: Simple ordinary annuity = Payments made at the end of each period with same compounding frequency as…

Q: Riley takes out a loan L of 3000 dollars to buy a car at an effective annual rate of interest of 6%.…

A: The mortgage is the obligation to pay back the debt amount taken as a loan for satisfying the need…

Q: A laptop was purchased worth Php 90000. This is through an installment of 2 year and there is also…

A: Time value of money is used in the calculation of the monthly instalment to be paid, the future…

Q: 1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal…

A: We need to use RATE function in excel to calculate interest rate. Formula is =RATE(NPER,-PMT,PV)

Q: Find the annual payment for the 6 years if a house cost P 400,000.00. Mr Killua will pay S90,000…

A: Installment is the amount of equal periodic payment a borrower has to make to lender in order to pay…

Q: To help buy her new condominium, Maria is taking out a $154,000 mortgage loan for 30 years at 3.7%…

A: The loan is a value that is borrowed from external sources like banks and this amount is repaid…

Q: Mr. Joe  takes a loan P amount from the bank. The loan attracts an interest of 1.5% per month…

A: future value = present value×ert where, r=rate of interest t=time in years

Q: John made a down payment of RM20,000 toward the purchase of a car. He secured a 9-year loan from a…

A: Down payment (DP) = RM 20,000 Monthly payment (P) = RM 715 Period = 9  Years Number of monthly…

Q: An employee obtained a loan of P100,000.00 at the rate of 6% compounded annually in order to build a…

A: The series of monthly payments is a form of annuity wherein an equal amount is paid every month.

Q: an employee obtain a loan of 10000 at the rate of 6% compounded annually in order to repair his…

A: Amortized loan refers to a loan where the principal amount of the loan is paid over the life of the…

Q: If Marc obtained a business loan of $225,000 at 4.77% compounded semi-annually, how much should he…

A: Solution:- When a loan is taken, it is either paid back in lump sum mode or installments. In…

Q: A man borrowed P 150,000.00 from the bank payable on the 1st day of every month for 2 years. If he…

A: An interest rate is a rate that is the cost of borrowing money.

Q: Andy borrowed P9000 from Randy today and P12000 two years after and made a partial payment of P7000…

A: The present value of the two payments will be equal to the outstanding balance at the end of the 3rd…

Q: Michael needs an investment loan. He gets a simple interest amortized loan for $12,000 at 9 % for…

A: Amortized loan include a series of equal timely instalments paid at the end of each time interval.…

Q: You need additional cash for the payment of your tuition fee and other expenses for your studies.…

A: Solution:- When a loan is taken, it can be either repaid as a lump sum payment or in installments.…

Q: en problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…

A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…

Q: To help purchase his new minivan, Eric is taking out a $17,000 amortized loan for 6 years at 5.9%…

A: The periodic payment on the loan is made to repay the loan. The periodic payment decreases the…

Q: Ryan must pay off a loan of $4,000 in 3 years. Use the appropriate formula to find the amortization…

A: Amortization: When the debt is paid off in regular installments and principal of loan is repaid till…

Q: Find the monthly payment for the loan indicated.  yo purchase a home, a family borrowed $97,000 at…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

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.