Belle decided to start a new investment account.  She deposits $1,000 into an account that earns 3.5% interest, compounded quarterly for 10 years.  How much more would she have earned, in interest, if she invested the same amount into an account earning 3.8% interest, compounded monthly, for the same number of years?  a $44.50  b $350  c $1,416.91  d 1,461.41

Q: Margaret Moore expects to need $44,000 for a down payment on a house in six years. How much would…

A: Present Value  =Future Value / (1+rate)^n Where, rate = 8.25% n = no. of year i.e. 6 Future Value =…

Q: 2. Emily invests $7646 for 6 years in an account that is compounded monthly at 4.8%. a) How much…

A: The amount deposited in the bank for 6 years and the interest paid monthly to the deposited amount,…

Q: Mary Kate and Ashley discover they have $40,000 from their Full House days that they haven't used.…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Theresa invested $5,000 in an account she expects will earn 7% annually. Approximately how many…

A: This question require us to calculate the time period (years) required to make the investment of…

Q: Ronald Gonzales, who recently sold his Bicycle, placed P10,000 in a savings account paying annual…

A: Future Sum is the accumulated value of given amount with interest over each period. In given case,…

Q: Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: If Laura invests $1,230.00 in an account earning 2.95% simple interest, how much money will be her…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: Part-A Borrowed Amount is $5000 Time period is 2 years Interest rate is 7% Per annum To Find:…

Q: Jill invested $1,000 each year into an account that earns 10% interest compounded annually to have…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Sonya is making a savings plan: every year she will deposit $1,650 in an account that earns 4.5%,…

A: Given, yearly payment is $1650 Interest rate is 4.5%

Q: Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months…

A:

Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…

A: Borrowed Amount =$130000.00 YEars =28 Terms(m) =28*12 = 336 Monthly Rate(r) = 4.7%/12 = 0.39166667%…

Q: Ten years ago, Valerie decided to start putting $50 into an account every week. If the account earns…

A: Given, Amount of deposit is $50 Rate is 3.45% compounded weekly Number of years is 10

Q: my Jolly deposited $2 000 in a savings account.  The annual rate is 10 per cent   compounded…

A: The future value of money includes the money deposited and interest accumulated over the period of…

Q: If Laura invests $1,230,00 in an account earning 2.95% simple interest, how much money will be her…

A: The fund or money in the account would be Principal invested and interest of a certain period at the…

Q: Claire has a retirement account worth $975,000. The account draws 3.6% compounded monthly.  A. How…

A: Retirement account = $975,000 Interest rate = 3.6%  Compounded = Monthly

Q: Anita put up a bank account with an initial deposit Lou f P25, 000. After six months, she deposited…

A: Simple interest is the amount earned only on the investment principal.

Q: Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in…

A: Interest per year can be calculated as: = Principal * Rate * Time

Q: Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the…

A: First  we need to calculate the interest rate. Given,  Amount will be doubled in 5 years and it is…

Q: An individual wants to have 1,000,000 AED in 10 years. Suppose she will pay no taxes at the end of…

A: To calculate the present value , the future value need to be discounted using the discount rate.…

Q: January 2001, Bianca invested $5,000 for three years at 4.20%; in January 2010, she invested $5,000…

A: This question is related to investing. The investor invests money in many investments. These types…

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…

A: Amount Borrowed =$85,000.00 Interest Rate = 6.5% = 6.5/12 = 0.54167% Years = 29 Terms = 29*12 = 348…

Q: Delores has an investment account (Account # 1) with a current balance of $160,000. Delores plans to…

A: The future value (FV) of a single sum represents its current worth plus interest thereon at a given…

Q: awn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of…

A: Here, Annual Payments is $2,000  Time Duration of Investment is 10 years Interest Rate is 8%

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: calculation of above requirement are as follows

Q: Linda Williams expects to need $ 42,000 for a down payment on a house in six years. How much would…

A: The present value of an amount refers to the current value of a future amount at a specified…

Q: A bank offers an investment account with an annual interest rate of 1.49% compounded quarterly.…

A: Using excel FV function

Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…

A: Formulas:

Q: Cameron opened an RRSP account and deposited $3,800 into it. He then deposited $800 at the end of…

A: Deposit now = $ 3800 Deposit at the end of year 1 = $ 800 Deposit at the end of year 2 = $ 475…

Q: John Mojico invested her USD 20,000 in a BPI Time Deposit Account earning 2.8% simple interest for 2…

A: Simple interest is referred as the quick as well as easy method for the calculation of the interest…

Q: A young executive is going to purchase a vacation property for investment purposes. She needs to…

A: Introduction: Compound interest is the interest generated on the initial principle plus the interest…

Q: Mark and John started investing at the same time. Mark makes payments of $20 at the end of each week…

A: Future value refers to the value of the investment at a future date. This includes the principal…

Q: A woman deposited $10,000 into an account at her credit union. The money was left on deposit for 10…

A: Investment = 10,000 Total Time Period= 10 years First 5 years, 9% interest compounded monthly,…

Q: Assuming no withdrawals are made, how much money is in the Thompsons' account after 3 years? 2. How…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Amy Jolly deposited $2 000 in a savings account.  The annual rate is 10 per cent  compounded…

A: PV is the amount invested today.

Q: A saver places £7,000 in an account. The account pays interest at the rate of 5% per year. She…

A: Using the equation  M = P (1 + i)n M= 7000(1+5%)^4 = 8508.54

Q: Sarah opens an investment account with an initial deposit of $1900. She then sets up monthly…

A: In this question we need to compute how much money will sarah have in account in 5 years i.e. we…

Q: Rose has an opportunity to invest in an income account at 12% compounded continuously. The amounts…

A: given information   interest rate = 12% compounded continously  time period = 8 years

Q: After working for years in her small business. Dr Ewere was finally making money. Since she was…

A: The future value of $185,750 for Dr. Ewere would be computed using the following formula: - Future…

Q: a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down…

A: Amount earned in royalties is $15,000 Amount set aside is 20% Amount invested is 15000×1-20%=…

Q: 4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual…

A: Amount invested at the end of each year =$2000 Effective annual Interest =3% Effective Annual…

Q: In this question the following formulae may be used: (1 + i)". – 1 FV = PMT- i PV = PMT!-(1+i)" i…

A: An annuity is a sequence of equivalent periodic cash flows over a particular time duration. An…

Q: Priya saved for buying a home by making deposits of $1000 at the end of each year for 10 consecutive…

A: FV is the amount of investment value after a certain period

Q: An individual wants to have 1,000,000 AED in 10 years. Suppose she will pay no taxes at the end of…

A: According to the question, an individual wants 1,000,0000 AED in 10 years i.e. the amount of…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a) Find…

A: PV= $100 r= 4% compounded monthly n= 20 years FV=?   FV= PV(1+r)n FV= $100(1+0.04/12)20*12 FV=…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a)find the…

A: Annuity refers to an investment which involves a series of regular payments for a certain period of…

Q: nvested the profit of her business in an investment fund that was earning 2.25% compounded monthly.…

A: In this we need to find out the present value of all options.

Q: Juliana opened a savings account with $467. The savings account compounds the interest annually and…

A: Time Value of money :— According to this concept,  Value of money today is greater than value of…

Q: Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the…

A: Solution:- When an amount is deposited somewhere, it earns interest on it.  The amount invested is…

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.