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: Consider the following series of payments which start at time t = 0: 5, 7, 9, 11... What is the…

A: Interest rate = 8%Payment at t0 = 5Payment at t1 = 7Payment at t2 = 9Payment at t3 = 11Payment at t4…

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: SIMPLE vs COMPOUND INTEREST Isimp. = P * r * t where P - principal amount (the initial amount you…

A: Simple interest = P * r * t  where P = Principal amount r = rate of interest t = time period…

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: 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: Paying off credit card debt: 000.8012=000.5062000.0128 What will be your monthly payment if you have…

A: The time value of money is the idea that an amount of wealth is considerably more right now than it…

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: Loan amount = $175,591 Assume that your broker agents introduce/assess you to a local bank of…

A: Mortgage relates to a long-term fixed asset financing option where bank makes payment for fixed…

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: A bank originates a 30 year Fully Amortizing FRM at an annual interest rate of 5% with monthly…

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 =…

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

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

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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…

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A: In this question, we will be creating Loan amortization table until its get fully paid off. The…

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A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.

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

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A: On the income statement, the expenditure for interest is categorized as a non-operating item. It is…

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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…

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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…

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

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A: Interest rate can be calculated by using the excel formula ''=RATE''

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

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.