Stephanie borrows Php77,000 for 10 months at an interest rate of 12% per year. Find the interest earned and the total amount she has to pay. a) How much is the interest earned? b) How much is the total amount that Stephanie has to pay?

Q: 10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her…

A: the amount of each of the 12 payments. given: P10,000 bank loan in 10 equal payments 10% effective…

Q: Margo borrows $900, agreeing to pay it back with 4% annual interest after 14 months. How much…

A: The amount borrowed is recorded as principal amount and extra amount paid to pay off the loan at…

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: Nicole loans P900,000 from bank today which gives her 10% interest rate compounded annually. Based…

A: Loan amount (L) = P 900000 r = 10% n = 10 payments Let the annual payment = A

Q: Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Daryl Yap invested the amount of Php100,000 in a bank that offers 15 % per annum simple interest.…

A:

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: Present Value = 18,420 Future Value = 20,000

Q: Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually. a) What is n for…

A: Basic Details: 1. Investment = $8400 2. Time = 8 years and 10 Months 3. Interest rate = 5 %…

Q: a. lane borrows $30,000 for 10 years. She wishes to pay it off with five payments. The first payment…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Rosel applied for a cash loan with an amount of P100,000.00 to be paid using ordinary simple…

A: Loan amount (L) = P 100000 Simple interest rate (r) = 6.5% n = 2 years 5 months = 29 months

Q: to borrow PHP 1.7M from a bank and plans to repay the same amount in 8 years. If the bank charges…

A: Concept of Bank Loan  Bank borrowing and amortisation

Q: Flo East has $25,000 to invest in a financial institution for a period of three years. Institution A…

A: Explanation : When we are calculating the Compounded Interest calculation Monthly Compounding…

Q: f Brian wants to buy a house that cost $100000 the bank agreed to give him 80% of cost at 0.07…

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

Q: If Phil borrows $40,000 from a loan company at an interest rate of 6.5% per year compounded weekly,…

A: Here, Loan amount = $40,000 Quarterly payment of the loan = $800 Interest rate = 6.5% compounded…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $11,000 in student…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Ken is paying P2,500 every 3 months for the amount he borrowed at an interest rate of 8% compounded…

A: Answer: Calculation of the amount that Ken borrowed: The amount that Ken borrowed will be equal to…

Q: Natasha is going to take out an unsubsidized student loan of $13,500 at a 4.2% APR, compounded…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Q: Sara borrows 35,000 at 12% for 9 months on a discounted loan. A. How much is the interest on the…

A: In a discounted loan, the borrower does not make any interest payments. He receives the loan at a…

Q: naline wants to have 5000 dollars after 6 years in the account that draw a nominal interest of 7…

A: The future value of goes on increasing as there is more compounding over the period of time.

Q: Reggie availed of a deferred payment scheme from a bank that gave her an option to pay ₱5,500…

A: solution given Monthly payment 5500 Rate of interest 12% annual Compounding…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: While Jack was a student at the University of Georgia she borrowed $12,000in student loans at an…

A: The nper function in excel can be used for the purpose of determining the amount of time required to…

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: Mr. Joe pays $2068 a month for the loan he took from a bank. If the total payment period is 3 years…

A: Mr. Joe pays monthly loan = $2068 Total payment period = 3 years Interest rate per annum = 29%…

Q: Mariah applied for a loan in a bank that gave 10, 000 pesos monthly payment for 2 years. The first…

A: The present value of an annuity is the current value of the future payments that are calculated…

Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…

A: Using excel NPER and PMT function

Q: How much is the cash price of the car if Mrs Ocampo is to pay Php 21,000 monthly in 5 years? The…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Victoria buys a property for $2,500,000 by paying $500,000 down payment and the rest on a 15-year…

A: The amount taken on credit or financed by the person is ascertained by deducting the down-payment…

Q: Avishek has an interest only loan for $100,000.00 maturing in 9 years. The interest rate on the loan…

A: Calculate the quarterly rate as follows: Quarterly rate =(1+Biweekly rate)264-1 Quarterly rate…

Q: While Kate was a student at SA University, she borrowed $16,000 in student loan at an annual…

A: The concept of the present value implies that the money today is  having more worth  than the money…

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…

A: Borrowed amount = P150,000 Time period = 2 years Rate = 6%

Q: After four years in college, Josie owes $104000 in student loans. The interest rate on the federal…

A: Let the amount in federal loans be "$X" , therefore amount in private bank loans would be…

Q: he annual interest rate on the loan is

A: Interest Rate: It is the rate used to compute the finance charge paid by the borrower for taking a…

Q: Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Q: Lamis borrowed OMR 10,000 from Bank Muscat with an interest rate of 5% for 3 years. The amount she…

A: The amount that has to pay after three years is the sum of principal and compound interest on the…

Q: Pauline borrows a loan of 120000 for 3 years at 11.5% simple interest Calculate the total interest…

A: Workings: Calculation of monthly interest payment: Monthly interest…

Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…

A: a) Interest for the first semi annual payment       = Principal * Rate * Time      = 135000 * 6%…

Q: Ria buys a two-year-old Honda from a car dealer for P450,000. She puts P150,000 down and finances…

A: Equated monthly installments(EMI) is the equally divided monthly installments that outgoes to clear…

Q: If Martha borrowed $22,000 from Wachovia Bank at 7.5 percent interest for 3 years, the principal…

A: Face value of loan will be present value of loan.

Q: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…

A: Price of house = $ 360,000 Dow payment =10% Loan amount (PV) = 360,000*(1-0.10)…

Q: A recent college graduate buys a new car by borrowing $18,000 at 8.4%, compounded monthly, for 5…

A: Borrowing = 18,000 Compounding Monthly, hence we will divide interest by 12 and multiply time period…

Q: Mr. Nina borrows $425,000 from the bank at 3.5% per year interest over a 30-year period. He can make…

A: Amount borrowed = $425000 Interest rate = 3.5% Period = 30 years  Monthly payment = $1400

Q: John invested Php1000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually,…

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

Q: A woman deposits $12,000 at the end of each year for 15 years in an investment account with a…

A: The question is based on the concept for calculation of the future value by use of compounding…

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.