Which expression best calculates your monthly payment for a $10,000 conventional loan that you borrowed from a bank that charges an annual interest rate of 4% for 5 years? 10000 10000 10000 10000 0.04 12 1-(1+004) 0.04 1-(1+0.04) 5 0.04 1-(1+0.04) -5-12 -5-12 -5-12 (1-(1+004) 12 0.04 12

Q: You have a loan of $44354 and will repay the loan over 5 years at 2% interest under fixed payment…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: + nt card has a balance of $5400 and an annual interest rate of 1 there are no further purchases…

A: Loans are paid by the equal monthly payments and these payments carry the payment for interest and…

Q: ow much will you have to deposit into an account at the beginning of every 3 months for 20 years if…

A: Time, the value of money refers to the concept used for estimating the value of the present asset at…

Q: 5. How much interest must be paid on a loan of $4300 at 10% compounded semi- annually for 4 years?…

A: Working: Futute value= Spot1+rnWhere, r=Coupon Raten= no. of period F.V.…

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: 14. Louis is looking at buying a car for $20,000. The term for the loan is 6 years, and the interest…

A: Car value = $ 20000 Down payment = $ 2500 Loan amount (PV) = 20000-2500 = 17500 Annual interest rate…

Q: If your gross income is OMR 1800 per month, and you need a housing loan. What is the maximum amount…

A: 28/36 rule states that an individual should not spend more than 28% of their gross monthly income on…

Q: You borrow $2600 at 6% APR to purchase a computer. You plan to make monthly payments of $28.86 until…

A: The amortization table is a presentation method of installment payments, interest amount…

Q: QUESTION 6 You have a 7-year loan of $80,000. The borrower will pay $8,500 at the end of Year 1,…

A: Loan amount = $80,0001st year payment = $9,5002nd year payment = $8,5003rd year payment  =…

Q: Find the monthly payment needed to amortize principal and interest for the fixed-rate mortgage. Use…

A: Monthly installment refers to the amount of periodic payments a borrower makes to its lender in…

Q: Straight bank loan. Right Bank offers EAR loans of 9.44% and requires a monthly payment on all…

A: The amount of loan repayment which is required to be paid on a monthly basis is known as monthly…

Q: Consider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the…

A: The process of raising money or capital to support investment or commercial ventures is referred to…

Q: What is the APR for a fed ra

A: APR means annual percentage rate. APR means the borrowing cost incurred by the borrower for a…

Q: Jaspreet received a 15 year loan of $300,000 to purchase a house. The interest rate on the loan was…

A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Q: C5: If Maria is taking out a $10,000 loan to be paid off over 4 years with weekly payments of $55,…

A: Given information,Loan amount: Compounding frequency: WeeklyNumber of years:  yearsWeekly payments:…

Q: You want to have $65,000 in your savings account 11 years from now, and you're prepared to make…

A: Solution:- When an equal amount is deposited each period at end of the period, it is called ordinary…

Q: question 17

A:

Q: Solve the problem. Monthly Payment per $1000 of Mortgage Interest 15-year rate loan 9.5% $10.45…

A: Monthly Interest can be computed as follows = (Principe x Rate of Interest x 1) /(100 x 12) Since we…

Q: Investigate the effect of the term on simple interest amortized auto loans by finding the monthly…

A: Interest on Loans: The amount that the borrower of the loan is paid to the lender as the rent to use…

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A: Here, Interest earned by Bank on FRM is 5% Interest Paid by Bank on Borrowings is 6%

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time

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A: Effective Rate is the rate which takes in to account the compounding effect of the interest. It is…

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A: The loan amount is $300,000. The period is 12 years. The annual interest rate is 6%. Payments…

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A: Compound = monthly = 1230 Year Monthly Payment = p = $787.35Present Value of Mortgage = pv =…

Q: Problem #3: A loan of amount $16720.82 is repaid in 15 annual payments beginning 1 year after the…

A: To determine the principal repayment in year 6 we first need to determine the loan balance in year…

Q: To purchase a new car, you borrow $20,000. The bank offers a 6-year loan at an interest rate of…

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

Q: None

A: Option c: This option is correct. Step 1:We have to calculate the present value of the amount to be…

Q: how much would you need to pay annually to pay off a $5,000 loan at 4% with equal payments over 4…

A: The equal payment is the payment that has to be paid for over the period to settle the borrowed…

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A: We take loan when we are buying a large ticket item like a house or a car. This is because we do not…

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A: Here, Value of Loan is $2,000,000 Annual Interest Rate is 4.125% Time Period of Loan is 30 years…

Q: For the next 13 years, you will deposit $2,250 every quarter in a savings account. The account pays…

A: Future value of an annuity is the total value of a series of equal payments made at regular…

Q: You purchase a home for $390,000, by making a down payment of 16% and financing the remaining amount…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

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A: A mortgage refers to a covered loan borrowed for purchasing real estate. The real estate itself acts…

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A: A fully amortizing loan is where the balance keeps reducing after each payment until it becomes zero…

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A: Interest Rate = 6% p.a. Time Period = 5 years Cash Flows: Year Cash Flow 1 1000 2 1250 3…

Q: A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of…

A: In order to find the outstanding balance one has to deduct the payment from the loan amount.

Q: You have an annual installment loan of Rs.150,000 from ABC bank for 5 years. If the loan requires an…

A: loan 150000         year 5         rate 5%                     year beginning of year…

Q: a) A bank offers to lend you K1,000 if you sign a note to pay K1,610.50 at the end of 5  years. What…

A: As multiple questions have been asked, only the first question will be answered as per the…

Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: am. 120.

A: First, we need to calculate the monthly payment for the loan. This can be done using the formula for…

Q: O O O O What is 6% loan back in f installme A. P3 O B. P7 C. P2 D. P3

A: The given problem can be solved using PMT function in excel. PMT function computes amortization…

Q: You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the…

A: Future value of an annuity: It represents the future value of the present annuity stream of cash…

Q: Use PMT= to determine the regular payment amount, rounded to the nearest dollar. Your credit care…

A: As per the given information: Loan amount (P)- $4900Interest rate (r) - 11.5%Payment frequency (n) -…

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.