For how long will Markus have to make payments of $179 at the end of every year to repay a loan of $2130 if intere is 7% per annum compounded quarterly? State your answer in years and months (from 0 to 11 months)

Q: Paul obtained a loan of $20,000 at 4.10 % compounded monthly. How long will it take to settle the…

A: The objective of the question is to find out how long it will take for Paul to settle his loan of…

Q: Nick’s car loan requires payments of $472.77 at the end of every month for five years, including…

A:

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: The objective of the question is to find out the time period Zack will take to repay his loan by…

Q: Senyor Pigafetta borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with…

A: Loan amount (p) = P300,000.00 Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12) Number of payments…

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy of…

Q:

A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…

A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…

Q: to settle a debt of 40000, Mrs santiago will pay quarterly for 7 years at 14% compounded quarterly.…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: A $5000 loan at 10% compounded annually is to be repaid by two payments three and five years from…

A: Loan amount = $5000First payment = $3000Required rate of return =9%To find: The purchase price for…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The size of the payment can be computed by using the PMT formula of excel. The values require for…

Q: How much should I invest today and expect a reimbursement every other month with a ROR of 0.12…

A: Bi-monthly receipt amount (C) = 5822 Annual interest rate = 0.12 Bi-monthly interest rate (r) =…

Q: How much should I invest today and expect a reimbursement every other month with a ROR of 0.1…

A: Annual interest rate = 0.10.1 Bi monthly interest rate (r) = 0.1/6 = 0.016666667 Period = 4 years…

Q: If I plan to avail of a loan today and I will pay it P8,388 every start of the month for 6 years…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: As debt payment, P315,000 is due in 4 years and 7 months. If the debtor wishes to repay the debt…

A: Future value refers to the amount to be paid or received on a future date. The future value takes…

Q: Carlo paid P 13,500 after two years to fully pay his loan that costs P 10,000. What is the interest…

A: Loan to be repaid on maturity = C* ( 1+i)n Where C is the amount of loan borrowed  i is the periodic…

Q: You borrow $5000 at 10% per year and will pay off the loan in 3 equal annual payments starting one…

A: Calculation of Payment at the end of Year 2:The interest payment is $348.94 and principal payment is…

Q: Reuben has the option of receiving a loan of $13,625 for 8 years at an interest rate of either 4.73%…

A: Future value, FV = P(1+r/k)^n*k  Where P is the loan value. r= rate. k = compounding  n= number of…

Q: Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much interest is paid over the life…

A: Compound = Monthly = 12Present Value = pv = $200,000Time = t = 30 * 12 = 360Interest Rate = r = 3.75…

Q: For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if…

A: A loan is a contract between two parties where an amount is forwarded on the promise of repayment…

Q: You want to receive ​$700 at the end of each month for 5years. Interest is 8.1% compounded monthly…

A: Calculating the present value is especially helpful when planning for retirement. To determine the…

Q: For how long will Zack have to make payments of $114.00 at the end of every six months to repay a…

A: Loan amount = $3,460.00Semi-annual payment = $114.00Interest rate = 4%

Q: A borrower obtains a partially amortizing constant payment mortgage loan for $75,000 at 24 percent…

A: Balloon Payment  Under Balloon payment a large amount of sum is to be paid at the end of loan term…

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the  loan with 4…

A: Here, To Find: Equal monthly payments =?

Q: A man borrows $200 at a 3% interest compounded monthy. If he pays the loan off at the end of 7…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You have a $200,000 loan at 4% interst over 20 years. You make the payment plus $250 at the end of…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Ms. Aay is considering to deposit $600 every six months, and would receive interest at an annual…

A: In the given question, semi-annual deposits of $ 600 are made for next 5 years, wherein first…

Q: Jacob has just agreed to take a loan that will require him to make payments of $107 at the end of…

A: Loan amount refers to an amount that is paid every month for the repayment of a loan by the borrower…

Q: Use the appropriate formula to find the amortization payment (in S) you would need to make each…

A: Monthly interest rate Loan amount PV = $8,500,Total number of payments Loan term t=5 years.

Q: Jane is being offered a loan of 25M for 5 years at 16% per annum compounded weekly. Determine the…

A: Loan is contract between lender & borrower where lender provide funds to borrower for definite…

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: How much interest would you be paying in the 75th month?

A: Amortization is the process of repaying the loan over time. In an amortizing loan, a portion of each…

Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4…

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Raquel will settle her debt my making quarterly payments of P5,800 for 3 years and 6 months but the…

A: Quarterly payment = P 5800 Period = 3.50 Years Number of quarterly payments = 3.5*4 = 14 Annual…

Q: Pedro borrows P300,000.00 from lender  ABC today at 12% compounded monthly.          To fulfill his…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: is 4% per annum compounded semi-annually? State your answer in years and months (from 0 to 11 He…

A: Loan amount=$3340Annual payment=$116Interest rate=4%Compounding semi annual.

Q: You have taken out a 20-year loan of $72,000 with 3% interest (APR) compounded monthly and with…

A: Annual percentage rate (APR) is a rate that a person is paying annually after undertaking all the…

Q: castor borrowed today from Chuchu P100,000.00 and agreed to repay the loan with 3 equal monthly…

A: Time value of money :— According to this concept, the value of money in present day is greater than…

Q: Solve the problem below on Amortization. (Round amounts to the nearest centavo) Mr. M. Roque obtains…

A: Loan amount (PV) = P 60,000 Interest rate = 8% Quarterly interest rate (r) = 8%/4 = 2% Period = 3…

Q: If I plan to avail of a loan today and I will pay it P7,338 every start of the month for 6 years…

A: monthly rate (r) = (1 + 11.6%/4)1/3 - 1 = 0.9575% FV = 0 N = 6*12 PMT = 7,338 use PV function in…

Q: How much should I invest today and expect a reimbursement every other month with a ROR of 0.08…

A: rate = 8%/6 N = 4*6 PMT = 5245 FV = 0 use PV function in Excel

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.