Lea buys a sala set. She pays P2, 500 down payment and pays P1, 200 per month for 2 years. If interest is charged at 6% compounded monthly, what is the cash equivalent of the sala set?

Q: how much must she pay each month?

A: Mortgage Payments: Mortgage payments are made to the lender by the borrower for taking a loan.…

Q: A woman buys a house for a ​$260,000. She pays ​$20,000 down and takes out a mortgage at 5.1​% for…

A: Purchase Price of House = pp = $260,000Down Payment = dp = $20,000Compound = Monthly = 12Interest…

Q: Nina buys a piece of lot for P30,000 down payment and 8 deferred semi-annual payments of P 5,000…

A: Annuity: A contract between you and another party known as an annuity obligates the borrower to pay…

Q: ack buys a a car from a chant who offers P 748,000.00 at the end of 5 years. Jack wishes to pay…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub part, please…

Q: Margo borrows $900, agreeing to pay it back with 4% annual interest after 14 months. How much…

A: The amount borrowed is recorded as principal amount and extra amount paid to pay off the loan at…

Q: A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year…

A: Time value concept Money that is received today is of more worth as compared to the money received…

Q: months over 3 years at 7% per year compounded quarterly. much is Ana's quarterly payment?

A: Formula to calculate quarterly payment under loan: Annuity amount Loan…

Q: a. Kim pays ₱2,000 every two months to settle his obligation for two years at 8% compounded…

A: a. The present value can be calculated using the PV Function.  b. The monthly payment can be…

Q: Aidan deposits $1000 at the end of each quarter in an account that pays 5.25% per year, compounded…

A: Solution: An equal amount invested every period is called annuity. So, future value of annuity = PMT…

Q: Helen has two debts to pay; a $3500 today and a $4500 in 9months from today. How much should she pay…

A: Present Value(PV) is value of a future amount at current point of time. It is done by discounting…

Q: Nicole loans P900,000 from bank today which gives her 10% interest rate compounded annually. Based…

A: Loan amount (L) = P 900000 r = 10% n = 10 payments Let the annual payment = A

Q: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…

A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…

Q: Anna deposits at the beginning of every month of P1,500 into an annuity for 6 years. If she wishes…

A: In this we need to calculate present value factor monthly to get the interest rate.

Q: John takes out a 5 year loan for $10000 at 8% interest compounded monthly. Calculate his monthly…

A: The annuity is an amount that is paid back to the loan amount which consists of interest payments…

Q: Jake paid 100,000 pesos as down payment for a farm. The remaining amount is to be settled by paying…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: Clara borrows $41,000 today at 2.9% per year compounded quarterly, to start her own buisness. she…

A: In this question we need to compute the Clara's quarterly payments from following details: Loan…

Q: Benjamin borrows $50,000 from a lending institution for building a house. The lending institution…

A: The question is based on the concept of amortization of mortgage loans. A mortgage loan is paid back…

Q: b. Calculate the upfront amount that she should pay under the alternative payment agreement so that…

A: Equivalent value today is present value of both payments based on time and interest rate off money…

Q: Carol borrows $27,663 to help pay for expenses. The loan is for 7 years and carries an annual rate…

A: Amortization is a financial concept that refers to the gradual repayment of a debt, typically…

Q: In order to accumulate enough money for a down payment on a house, a couple deposits $600 per month…

A: Accumulated value refers to the method of time, the value of money that is helpful in…

Q: Peter was receiving rental payments of $2,000 at the end of each month from his tenants of his…

A: A perpetuity is like an annuity in which cash flows are streamed for an indefinite period of time.…

Q: Joyce pays P 2,000 every two months to settle his obligations for two years at 8% compounded…

A: Bimonthly payment (B) = P 2000 r = 8% compounded bimonthly = 8%/6 bimonthly = 1.3333% n = 2 years =…

Q: must she

A: An installment that is paid on monthly basis is called PMT. A fixed amount of interest is to be…

Q: Carlos buys a house for 1,200,000 pesos. He makes a 20% down payment and the balance he takes a loan…

A: Solution: amount of loan = 1,200,000 * 80% = 960,000 Nos of monthly periods =15*12 = 180 Monthly…

Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: Margarita borrows R10,000 from her uncle and agrees to repay it in monthly instalments of R200. Her…

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

Q: A boy borrows 25000 from father. His father lends him the money, on the condition that he would be…

A: Here, Borrowed Amount is 25,000 First year monthly payment is 500 Interest Rate is 5.2% Compounding…

Q: Edward deposits P 100,000 in a savings account that pays 13% interest converted semiannually. How…

A: Nper refers to the number of periods or years which is required to clear the amount of loan at the…

Q: A woman borrows $2000 and agrees to pay 9% annual simple interest on the loan.  She repays the loan,…

A: The amount owed is calculated as sum of principal and interest

Q: Elizabeth pays $294.50 for a car lease at the beginning of every month for 1 years and 8 months at…

A: The first part of the question is asking us to identify the type of annuity Elizabeth has for her…

Q: Susanna wants to purchase a house costing $201,277. She plans to put $44,946 toward a down payment…

A: The monthly payments can be ascertained from the present value of annuity function.

Q: Mary deposits her P500, 000 in a saving bank that gives nominal interest if 9.4% compounded…

A: The value of the deposit after a period will be the future value of that deposit.

Q: Polly purchased a car. She paid P150,000 as down payment and pays P5,500 at the end of each month…

A: Polly purchased a car and paid ₱ 1,50,000 as the down payment and thereafter pays ₱ 5500 at the end…

Q: Caesar is paid monthly and deposits $300 each pay period into a savings account. Money invested in…

A: Variables in the question:PMT=Monthly deposit=$300Rate=4% (compounded monthly)N=7 yearsWorking…

Q: Margo borrows $400, agreeing to pay it back with 8% annual interest after 17 months. How much…

A: We need to use simple interest formula to calculate interest to be paid by Margo. Interest =…

Q: How much should Brianna have in a savings account that is earning 2.50% compounded semi-annually, if…

A: We need to use present value of ordinary annuity formula to calculate amount in account today to…

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.