A woman went to the Beneficial Loan Company and borrowed ST0,000. She must pay $323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.
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- You plan to borrow $1,000 from a bank. In exchange for $1,000 today, you promise to pay $1,130 in one year What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below) O A. Period 0 1 CHEA friend asks to borrow $48 from you and return will pay you $51 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $48 instead? b. How much money could you borrow today if you pay the bank $51 in one year? c. Should you loan the money to your friend or deposit it in the bank? DChoose the best answer and provide a solution. From problem 25, what was the rate of interest? A. 4.17% B.4.98% C. 3.98% D.3.15% Problem 25:A man borrowed P2,000.00 from his friend and agreed to pay the at the end of 6 months. His friend discounted the loan and gave him P1,920.00 in cash. What was the rate of discount?
- Suppose your first job pays you Php 300,000 annually. Answer the following questions assuming (a) you are unmarried, and (b) you are married with two young children. Let see how your allocation change. What percentage should your cash reserve contain?Stella deposits $1,250 in a bank account that pays 10.5% Interest compounded monthly. In 7 years, how much does she have in this account? t=0 $1250 n Cash Flow Diagram ------------- N Time Value of Money (TVM) Framework PV PMT FV type CPT What Excel function and arguments to that function would you use to compute this value? =function rate, nper, pmt. [PV], [type]) What is the compounding factor that would be used to compute the growth of the principal after one year?For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
- Consider a credit card with a balance of $7000. You wish to pay off the credit card in each scenario. Calculate the following. Round your answer to the nearest cent, if necessary.a. The amount of a monthly payment within the time frame givenb. The total amount paid over the time period12. APR of 17.99% paid off within 1 year APR of 24% paid off within 3 yearsSuppose you purchase a home and secure a loan for $165,000. If the bank charges a fee of 3 points, what is the charge for points?A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $45 instead? b. How much money could you borrow today if you pay the bank $48 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $45 instead? If you deposit the money in the bank today you will have in one year. (Round to the nearest cent.) b. How much money could you borrow today if you pay the bank $48 in one year? You will be able to borrow $ today. (Round to the nearest cent.) c. Should you loan the money to your friend or deposit it in the bank? (Select from the drop-down menu.) From a financial perspective, you should as it will result in more money for you at the end of the year.
- A friend asks to borrow $53.00 from you and in return will pay you $56.00 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53.00 instead? b. How much money could you borrow today if you pay the bank $56.00 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $53.00 instead? If you deposit the $53.00 in the bank today, you will have $ in one year. (Round to the nearest cent.)A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.)Solve the problem. Round money to the nearest cent, rate to the nearest tenth of a percent, and time to the nearest day. Jane Clark borrowed some money from her bank. After 242 days, she paid a maturity value of $11,751, which included interest of $844. Find the interest rate on her loan. O 11.5% O 12.2% O 11.4% O 11.2%