Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want to pay off both debts by a single payment in six years’ time. Assuming an interest rate of 8% p.a., how much do they have to pay?

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: Assume that somebody has to pay £2000 in three years’ time and £3000 in seven years’ time. They want…

A: To solve this question we will use the concept of time value of money.   The concept of time value…

Q: I borrow £5000 and agree to pay back £6000 after 18 months. Whatever is the annual rate of compound…

A: Annual Compounding refers to the financial process of adding interest to initial amount with the…

Q: You want to buy a $190,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: According to Bartleby guidelines, if a question involves multiple sub-parts, then 1st sub 3 parts…

Q: You loan from a loan firm an amount of $100,000 with a simple interest rate of 20% but the interest…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: What is the effective interest rate charged to a loan of P5,000 paid after 5 years amounting to…

A: Effective Rate of Interest is the percentage return on the amount invested into any return paying…

Q: You borrow $625 for 60 days at a simple interest rate of 2.9%. What is the interest on the loan? Be…

A: The Bankers’ rule is a measure of calculating simple interest where the exact number of days of the…

Q: 1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate.…

A: Future Value(FV) is value of current amount at future point of time. FV is computed by compounding…

Q: (6) Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan. What is the…

A: Using Excel Rate function

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: How much simple interest will a loan of 2500 for two years earn at 6%?

A: Simple interest is the amount that has been charged by the lender on the loan amount for the given…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: (a) You need to borrow £20,000 for a total of 10 years. You have two options. The first option is to…

A: In this problem, we will first calculate the effective rate on the full tenure of the loan using the…

Q: In return for a loan of £500, a loan shark charges £1 per day payable when the loan is paid back.…

A:

Q: We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum…

A: In the first scenario, interest rate is 18% and either $10 or 2.5% is paid as the minimum payment,…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: re buying a R150 000 house for 10% deposit, with the rest financed by a bank loan a 1, compounded…

A: In this we have to calculate the present value FACTOR monthly and get monthly payments.

Q: se you recently bought a house for R1 650 000 and secured a home loan from the bank, with an…

A: Mortgage loans are paid by equal monthly installments and these carry the payment for interest and…

Q: If you deposit money today in an account that pays 3.4% annual interest, how long will it take to…

A: Given information: Let us suppose the present value is $1,The interest rate is 3.4%Future value is…

Q: Suppose one estimates that they can afford to repay £1200 a month for 25 years on a mortgage.…

A: Here, Monthly Payment is £1,200 Interest Rate (r) is 4.3% Compounding Period (m) is Monthly Time…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest :  It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: 5. * Assume that somebody has to pay £2000 in three years' time and £3000 in seven years' time. They…

A: To determine the amount that they need to pay a year 6, we need to bring all the payments to the…

Q: Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Suppose you need to hand $52,569 in an account 25 years from today and that account pays 6%. How…

A: Future vaue =52569Interest rate=6%

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

Q: If you borrow £100 from a payday lender in the United Kingdom, you are expected to pay back £120 in…

A: Variables in the question:Loan amounr=£100Amount paid back=£120n=15 daysAssume 365 days in a year

Q: What is the simple interest due on a 5 year loan of 4,00,000 if the annual rate is 6%.

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: ana has to pay RM1,200 every month for 360 months to settle a housing loan at 4% compounded…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Suppose you take a 30-year fixed-rate mortgage loan for $600,000 with a mortgage rate of 6%.

A: in this we have to calculate annual payment and than find out how much is paid and how much is…

Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: maximum loan

A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…