Determine the exact and ordinary simple interest on 500 for the period from Jan 15 to December vear 2000 at 10% interest?

Q: he effective annual interest rate is 15%. A) Assume interest is compounded monthly. What is the…

A: The effective annual interest rate is the real return on a savings account or any interest-paying…

Q: For items 16-30, when asked about an amount of money (interest, discount, present value, future…

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

Q: Using 12 percent simple interest per year, how much interest will be owed on aloan of $500 at the…

A: Interest Rate(R) = 12 Loan Amount(P)=$500 Years(T) = 2

Q: Use the continuous compound interest formula to find the indicated value. A = $7,500; r= 6.54%; t= 6…

A: Amount(A) = $7500 Rate(r) = 6.54% Time(t) = 6 years  Principal = P Continous Compounded

Q: Find the present value of an account if the future value is $5,750 at 4 !% simple interest for 630…

A:

Q: Starting at 1 January 2020, the effective rate of interest will be 5% per half-year for 12 months,…

A: This is a question based on the concept of time value of money, a major difference being that…

Q: Determine the discount rate assuming the PV of $1,000 at the end of 1 year is $980?

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

Q: What is the equivalent rate of interest (in %) for a discount rate of 7.9% for 77 days? Round your…

A: Interest rate is referred as the percentage of the principal charged through the lender regarding…

Q: Compute the future values of the following annuities first assuming that payments are made on the…

A: An annuity is a series of payments made at equal intervals.An ordinary annuity involves payments at…

Q: How much is the exact interest earned if 4500$ is lent at 12% for 125 days?

A: Interest is the amount charged or received on the amount borrowed or invested for the particular…

Q: At a certain interest rate cpd. semiannually, P71556 will amount to P138998 after 10 years. What is…

A: This is the problem of the time value of money. First, we will compute the applicable rate to…

Q: what simple interest rate is equivalent to 1% compounded quarterly

A: Simple interest rate is the rate which does not compound means under this rate there is no concept…

Q: What is the interest accrued on $6,500 at 6% for 60 days?  (Express your answer in whole dollars.)

A: The problem is asking us to calculate the interest accrued on a principal amount of $6,500 at an…

Q: 5) Determine the present value at time 0 of payments of $1,000 at the start of each month for 5…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Find the principal Rate: 7 and 1/2 Time: 150 days Interest:$500 The principal is ?

A: compound interest = Principal * [(1+r)^n - 1] Where,  r = rate of interest i.e. 7 and 1/2 or 7.5%  n…

Q: Find the amount due if $800 is borrowed for 18 months at 18% simple interest.

A: Amount borrowed (P) = $800 Period (n) = 18 months Interest rate (r) =0.18 Amount due = ?

Q: If the spot CAD/USD rate is 1.1239 and the two year interest rates on CAD and USD are 1.75% and 1.4%…

A: Forward Rate can be calculated as follows: Forward rate=Spot rate×1+interest rate of CAD1+interest…

Q: What is the effective rate of 16% interest compounded semiannually?

A: In this question we require to compute the effective rate of 16% interest compounded semi-annually

Q: Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your…

A: Compound interest can be calculated by using this equation A=P*(1+i)n Where A=Compound amount/future…

Q: Calculate the simple interest rate when P=$3600 , I=_160 and t=4 months. Round to the nearest…

A: Compounding is the interest charged on interest. When any investment is made for certain years, the…

Q: What is the effective rate (annually compounded rate) of interest corresponding to 9% compounded…

A: The effective annual rate (EAR) is the actual rate of interest that an investment earns over a year,…

Q: Answer the given problem below. Attach a complete solution. Determine the exact simple interest on…

A: Principal amount (P) = P150000 Period from June 25,2005 to September 2,2006 (d) = 434 days Interest…

Q: What is the periodic interest rate for an APR of 23% with daily compounding? Enter your answer…

A: Compound = n = Daily = 365Interest Rate = r = 23%

Q: If the present discounted value of $1,562 received 7 years from now is $1,123, what is the interest…

A: Here, Particulars Values Future value (FV)  $1,562.00 Present discounted value (PV)…

Q: Determine the size of the periodic rent. Future Value: $2457 Payment Interval: 6 months Term: 10…

A: Here,Future Value (FV) is $2457Time Period (n) is 10 yearsInterest Rate (r) is 8%Compounded Period…

Q: With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: what nominal rate of interest compounded quartely is quivilant to a effective rate of 5.99%.

A: We will use formula for effective rate of interest to find nominal rate :   re = 1 + imm   -  1…

Q: The 4 month interest rate in AUD is 4.25% p.a. and the 15 month AUD interest rate is 5.125%.…

A: To calculate the Forward Rate Agreement (FRA) for a 4x15 FRA, use the following formula:Where:R1 is…

Q: Assume that l2t = 0.25% and that lit = 0. If the one-year interest rate is 5% and the two-year…

A: Preferred Habitat Theory: Investors have different preferences for maturity when it comes to bonds,…

Q: Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Quarterly…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: o make a single payment of $2000 at the end of year 7 s $1000, and $900 made at the ends of years 1,…

A: Two cash flow are said to equivalent if the present value is equal today based on time value of…

Q: If the appropriate interest rate is 7%, then present value of $500 paid at the beginning of each…

A: This can be solved using the Present value of annuity due formulaPresent value of annuity due is =…

Q: 5. The present value of 100 paid in n years plus the present value of 100 paid in 2n years is 100…

A: The objective of the question is to find the value of 'n' in years, given that the present value of…

Q: b) What is the present value of $32.500 to be received at the end of each of 6 periods, discounted…

A: Present Value is that value which is calculated with the help of future cash inflow & outflow…

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.