Answered: A loan for P 60,000.00 is to be paid in…

Business

Economics

A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective rate of money?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 7 years of savings were made in a deposit account that pays 22% compound interest annually. The…

A: Savings are done by individuals in order to earn a benefit in the form of interest rate. The scheme…

Q: How much money would you need to deposit today at 8% annual interest compounded monthly to have…

A: Given Rate of interest = 8% per year compounded monthly. Future value of money =$20000 Time = 5…

Q: With an interest rate of 7%, how much money can be lent now if $15,000 will be repaid at the end of…

A: Interest rate (r) = 7% or 0.07 Accumulated amount (A) = $15000 Time period (n) = 5

Q: Mr. Lee purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000…

A: In the first place, the loan amount is the present value of quarterly payments for 5 years…

Q: If $700 is invested at 11% simple interest, calculate its value after 8 years.

A: Following are the given values: Invested amount = $700 Interest rate = 11% Time = 8 years

Q: Jackie takes out a loan for $38,000 at an interest rate of 6% for a period of 5 years. Assuming she…

A: A loan is a sum of money that is borrowed from a lender with the expectation of being paid back,…

Q: Calculate the amount of money an engineer pays on a loan if she borrows $50,000 for 7 years at 11.5%…

A: The amount the engineer pays would be given by the formula: A= P[1+(r/100)]n Where A is the amount…

Q: If you have a loan of 140,000 at 9% per year over 20 years and you repay the loan every month for…

A: A loan is a sum of money that is borrowed from a lender with the agreement to repay it, usually with…

Q: Bruce deposited $100 into the bank account. The account is credited with interest at a nominal…

A: The correct answer is given in the second step.

Q: 2. What is the monthly payment for a loan of 100,000 over 5 years nominal interest rate is 12%…

A: Loan amount = $ 100,000 Tenure = 5 years = 5 × 12 months = 60 months Interest rate = 12% (compounded…

Q: If $160 at Time “0” will be worth $170 a year later and was $150 a year ago, compute the interest…

A: Given, At time ‘0’, $160 will worth $170 a year and was $150 a year age.

Q: A person wants to know how large his deposit of $10000 today will become at a compound annual…

A: Present deposit amount(P)=$10000 interest rate (r)=10% time (t) =5 years

Q: A man wishes to have 30,000 when he retires 16 years from now. If he can expect to receive 4% annual…

A: Step 1: Given Value for Calculation Future Value = fv = 30,000Number of Payment = n = 16Interest…

Q: What is the present equivalent value

A: Given the weekly balance deposit is $ 359. Time period (t) given is 5 years. APR (rate of…

Q: Lee wills loaned Audrey $17300 to open her shop after 5 years Audrey will pay back Lee with 16%…

A: The formula for compound interest will be: A=P1+R4004t Where A is the amount received after 4 years…

Q: Edward takes out today a loan of $150,000.00 from a local Bank at 8% Compound Interest for 7 years.…

A: Here we calculate the amount Edward pay back at the end of year 7th by using the given information ,…

Q: uppose you invested a hundred thousand pesos in an account now. After eight years, you withdrew the…

A: Investment Amount = 100,000

Q: 5000 is invested at an interest rate of 15% year compounded quarterly. what is the quarterly…

A: The information given is as follows:- Invested amount = 5000 interest rate = 15% per year compounded…

Q: Mary plans to borrow $10,000 now to start a business. She promised to repay the entire principal…

A: Compound interest: A=P1+r100nWhere, A=AmountP=Principalr=Rate of interestn=Time(In years)

Q: What is value of $475 at interest rate of 3.7% after 15 years?

A: The data presented in the question above is:- Principal amount = $475 Interest rate = 3.7% Time…

Q: You take a loan for $25,000 to pay for school. You want to pay it back within 4 years by making…

A: monthly payment is what you pay to the lender each month to repay your loan. The amount you pay…

Q: What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound…

A: Future value is the value of current cashflow at future date compounded at specified rate. formula:…

Q: what interest rate, componded continously, is needed for a principalof 4000 to increaseto 13000 in…

A: Given: Principal (P)=4000 Future value (A)=13000 Time (t)=10 years To find: Interest rate (r)

Q: An engineer deposits $3,000 into a saving account at the end of the first year. He w increase the…

A: Present value is the value of some amount of money at the current time.

Q: How much money would you need to deposit today at 8% annual interest compounded monthly to have…

Q: What will be the rate for a sum taken for 5 years at 8% p.a. compounded half-yearly?

A: n = 5 Year interest rate = 8% compounded half Yearly

Q: If you deposit $10000 into a fund paying 6% interest. how much will be the amount after 1 years.

A: Deposit amount = $10000 Interest rate = 6% Time = 1 year

Q: If you wish to have $800 in your savings account at the end of 4 years with 5% APR interest. How…

A: solution:-

Q: A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of…

A: A gamer decide to buy new laptop. This laptop seller agrees with down payment of laptop on monthly…

Q: 3 A sum of $6000 is invested at an interest rate of 7% per year. Find the time required forthe Money…

A: The compound interest rate is the increase of the interest rate in the real amount of the loan or…

Q: Mr. Cardo Dalisay deposit of Php 3000 earns 2% interest compounded semiannually. He waited years for…

A: Given:- P=3000 r=2% t=4 years n=2(As compounded semiannually) Please find detailed solution from…

Q: Brandon purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It…

A: Semi-annual payments (PMT) = $3500 at the end of every 6 months starting 4 years and 1 month (i.e.…

Q: If you are able to save $4400 in year 1, and amounts increase by 2.6% each year through year 19 at…

A: Saving in the first year is $4400The annual increment rate in savings is 2.6%. Saving is made up to…

Q: A couple borrowed from a lending company an amount of P 4,000 for 6 years at 12%. At the end of 6…

A: Given Inital loan amount = P4000 of 6 year at 12% compound interest After 6 year, they have taken…

Question

A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective rate of money?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Lita made a loan of 1500 pesos at 99 simple interest for 5 years. At the end of this period, without the interest being paid the loan was extended for 3 years, but the new interest rate was made 20% compounded quarterly. How much should the borrower pay at the end of 8 years?
If you borrow $14000 now at 10% interest for 7 years, what is the total accumulated compound interest owed at the end of year 7?
You deposited P200,000 at BPI with an interest rate of 4% compounded semi-annually. What is the worth of your money after 5 years and six months?
A loan was to be amortized by a group of four end-of-year payments forming an ascending arithmetic progression. The initial payment was to be P 5,000 & th difference between successive payments was to be P 400. But the loan was renegotiated to provide for the payment of equal arther than uniformly varying sums. If the interest rate of the loan was 15%, what was the annual payment?
Barney deposits $3000 in goliath national bank for 3 year which earn him an interest of 8%. What is the amount he gets after 1 year, 2 years and 3 years?
A man borrowed P 80,000 and promised to pay the amount after 8 months with 12% interest. What is the future amount(P)?
Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4 years later, you established a belts and nuts factory, and start withdrawing P2,300 every month for advertisement. Money is worth 6% compounded monthly. How many months can you withdraw before the money is exhausted? What is the present worth of the withdrawal?
WITH SIMPLE INTEREST OF FIND THE PRESENT WORTH OF T 20,000D WHICH DUE At THE FND OF MONTHS.
A man borrowed P100k payable at the end of 1 year. He only received the amount of P94k after the bank collected the advance interest & additional amount of 1% for the processing fee. What was the rate of int. that the bank charged?
What will be the amount to be paid at the end of 3 year on Rs. 500 at 10% per annum compounded half-yearly?
A person deposited the 57,000 TL he saved each year for 5 years at 16% compound interest. Accordingly, how many TL will he receive from the bank at the end of 5 years
Present value of an annuity due. Find the present value of an annuity due of 2000 per annum for 14 years interest at 9% p.a.