Jerome borrows ₱75,000 from the bank that advertises a 8% of simple interest rate and repays the loan in six equal monthly payments. Find the finance charge and estimate the annual percentage rate.

Q: Mr. Mendoza wants to know the effective interest rate of his 435,000 bank loan with nominal interest…

A: Loan Amount = 435,000 Nominal Interest Rate = 4.7%  compounded semi-annually

Q: A man borrowed ₱180 000 from a bank payable in two years. The bank discounted the loan by ₱30 000.…

A: Theoretical interest rate is an interest rate which is calculated on amount borrowed whereas actual…

Q: Mr Danial borrows RM 10,000 for 9 months from a lender who charges a discount rate of 4 %. Calculate…

A: Amount borrowed (A) = RM 10000 n = 9 months = 0.75 years Discount rate (d) = 4%

Q: Antonio borrows $4,218 from the bank for 7 years at an annual interest rate of 9.02% compounded…

A: Interest rates are nominal and effective and both are different.Nominal interest rate is the stated…

Q: Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%. What is…

A: The loan discount refers to the loan in which the borrowers get the money after reducing the…

Q: John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did…

A: Ordinary time means day convention of 360 days. Here, the proceed or amount received from bank is…

Q: Asa Khumalo purchased a vehicle to the value of R224987 today and expects to make repayments for the…

A: Mortgage (X) = R 224987 n = 7 years = 84 months r = 12% per annum = 1% per month Let M = Initial…

Q: Boyd earned $35,000 of cash revenue during Year 1. Required Prepare an income statement and balance…

A: Concept of Working capital finance Bank finance - Credit Line from Bank  Interest Calculation Profit…

Q: The bank requires that the Dotkoms pay their homeowner's insurance, property taxes, and mortgage in…

A: The term mortgage refers to the loan taken from bank against which bank against some collateral…

Q: If $5,000 is borrowed at a simple interest rate of 5.65% p.a., calculate the interest charged for 6…

A: the amount of interest Marissa should receive is $356.35.Explanation:For the first question:Interest…

Q: Paul and Sandy Moede signed an $7,200 note at Citizen's Bank. Citizen's charges a 2.5% discount…

A: Given data, Face value of Note = $7,200 Bank discount rate = 2.5% Loan is for 320 days Number of…

Q: Keith deposits 10,000 into a bank account at time 0. The bank credits interest at an annual nominal…

A: Given: Principal = 10,000 Interest rate annual = i% Semi-annual rate = i%/2 For simplicity let us…

Q: Martinez Sporting Goods borrows $4,500, at 5% interest, for 120 days. Use the exact interest method…

A: Interest amount is the fixed amount that the lender will charge for lending some amount for certain…

Q: Casey deposits $465 into a savings account earning s 3.05% simple interest. How much interest will…

A: The question is based on the concept of Simple interest

Q: A friend of yours borrows $19,500 from the bank at 8% annually to be repaid in 10 equal annual…

A: Accumulated interest paid:Accumulated interest paid is the comprehensive sum of interest accrued and…

Q: Dan invested Php 25,000 in a time deposit account that earns 1.25% simple interest rate for 30 days.…

A: In finance interest can be simple interest or compound interest. Simple interest is that interest…

Q: Aura deposits $10.00 in a bank and fifteen years later deposits $20.00. The interest is credited at…

A: First Payment = p1 = 10Second Payment = p2 = 20nominal discount rate for first 10 years compound…

Q: An individual borrows ₱150,000 from a bank at 10% annually compounded interest to be repaid in 6…

A: Loan can be amortized by repaying it in equal instalments. Each payment comprises of both interest…

Q: Mr. Subito borrowed Php 4605 from a bank, which he will repay Php 5000 at the end of 10 months. In…

A: Given: Borrowed amount = Php 4,605 Future value = Php 5,000 Number of months = 10 months 6 months…

Q: Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00.…

A: We have a loan account where borrowing and payment is a continuous process as per requirement. We…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: Odom Company received from a customer a one-year, 250,000 note bearing annual interest of 8%. After…

A: Notes receivable are considered assets that are receivable after a certain period. It is generated…

Q: Paul signed an $8100 note at citizens bank. Citizens bank charges a 6.4% discount assume the loan is…

A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…

Q: Will borrowed$1205 from his bank for 16 months using a 4.1%discount note. Determine how much…

A: The amount of money invested over a period of time with the assumption of investment growth at a…

Q: Paul and Sandy Moede signed an $8000 note at Citizen's Bank. Citizen's charges a 6.50% discount…

A: Computation of effective rate of interest:Hence, the effective rate of interest is 6.87%.

Q: Lexi took out a loan from a loan shark with an interest rate of 5% bi-monthly, compounded…

A: Interest rate = 5% bi-monthly compounded semi-monthly Which means the interest rate is 5% every 2…

Q: Paul and Sandy Moede signed an $8,100 note at Citizen's Bank. Citizen's charges a 6.4% discount…

A: A note is a debt instrument where the borrowing party promises to pay back the face value of the…

Q: Sixteen Months after borrowing money, Ronron Cayabyab Pays an interest of ₱8,426. How much did he…

A: Simple compound interest calculation is a technique for calculating the portion of interest paid to…

Q: Mr. Navarro received a loan with maturity value of 811,000 at a discount rate of 11.22 % for 11…

A: Formulas. 1. Bank discount = (Maturity value × discount rate × time period.) ÷ 12. 2 . Proceeds  =…

Q: tained a loan from the bank worth P 400,000.00 payable within 4 years from the time the loan was…

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

Q: Your local bank offers 4-year certificates of deposit (CD) at a 12 percent annual nominal interest…

A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…

Q: Q.Mr. Jasim receives a note for $60,000 which is due in 180 days with simple interest rate of 15%.…

A: Amount of note= $60,000 Time to maturity= 180 days Discount rate= 12% Discount charges:…

Q: Gene McDonald's bank granted him a single-payment loan of $5,000 for 90 days at 9% ordinary…

A: A fundamental method of calculating interest in finance is called simple interest. It is calculated…

Q: A person borrowed a loan and pledged to repay it and its interest using the amortization method, out…

A: The present value of the annuity should be used here since the payment is made at regular intervals…

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five…

A: Definition:

Q: Sheridan Service has a line of credit loan with the bank. The initial loan balance was $8000.00.…

A: We have a loan account where payment and borrowing keeps happening. We need to find the balance when…

Q: Ms. Kim borrowed an amount from a bank but she only recieved from the bank P1,340. She promised to…

A: Actual amount received = P 1340 Discount rate = 13.73%

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4%…

A: Formula Future value = P*((1+i)n-1)/i Where P = Annual payment i.e. Php 1619 i = Annual interest…

Q: A man borrows money from a bank but he only received 83% of the amount requested. He signs a…

A: Simple interest rate is computed on the principal portion of the amount borrowed. Unlike compound…