Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise.  Pete plans to repay Lynn at the end of 8 years with 6% interest compounded semiannually. How much will Lynn receive at the end of 8 years?  PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =

Q: A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and…

A:

Q: Greg purchased a house recently for $365,000.00. He plans to put a 20% down payment and borrows the…

A: Equivalent amount distributes present worth into equivalent uniform value over its useful life.

Q: A young couple buying their first home borrow $70,000 for 30 years at 7.8%, compounded monthly, and…

A: Given:

Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…

A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…

Q: 2. Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of $120,000.…

A: The loan can be paid by making periodic payments. These periodic payments are made at regular…

Q: CHALLENGE: James obtained a loan of P 50 000.00 for the tuition fee of his son, He has to repay the…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $11,000…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Alice Reed deposits $16,500 in Rye Bank, which pays 10% interest compounded semiannually.  What will…

A: In this we have to calculate the future value of the present value.

Q: Gary purchased a house and obtained a 30 - year loan of $250,000 at an annual interest rate of 6.75%…

A: Using excel PMT and PV function

Q: A young couple buying their first home borrow $85,000 for 30 years at 7.9%, compounded monthly, and…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: 9. Aisha is looking for a $20,000 loan to buy a car. One financial institution has agreed to give…

A: Loan is a sum of amount borrowed from a lender. It is expected that the loan will be repaid at a…

Q: I need help working out this problem. Please explain in detail.   Polly Flin borrowed $5,000 for 60…

A: The question is based on the concept of simple interest calculation and adjustment in principle by…

Q: Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2 = 4.1% p.a. She…

A: The objective of this question is to find the value of Emily's annual payment amount, X, for the…

Q: Theresa and Raul purchased a house for $200,000. They made a down payment of 15% of the purchase…

A: Here, Particulars Values Purchase price  $ 2,00,000.00 Down payment percentage 15.00% Down…

Q: QUESTION 1 Bobby took out a loan of $1200 at 4.5% compounded semiannually and paid it off after 4…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 8. Your brother-in-law borrowed $2,000 from you 4 years ago and then disappeared. Yesterday he…

A: Future Value Future Value is the value which is measured at a specified date at a given interest…

Q: Jane Joy, owner of the Clock Shop, loaned $12,000 to Carol Miller to help her open an Art Shop.…

A: Future value The amount that an investment today will grow at a given interest rate is called its…

Q: A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and…

A: Mortgage are the loans taken from banks or non-banking financial institutions, to fulfill the…

Q: QUESTION 1 A man buys a house for $360,000 He makes a $150.000 down payment and amortizes the rest…

A: It is a case where a house is purchased using a downpayment as well as a loan is taken up to cover…

Q: How much will you have saved at the end of 6 years? Find the interest.

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: B. Ordinary Annuities 1. Roselyn spends Php 850 per month on cigarettes. If she stops smoking and…

A: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a…

Q: a) Bianca takes out a 20-year home loan of $480,000 for her property. She makes equal month-end…

A: A mortgage loan is the type of loan that is provided to a borrower by a bank or financial…

Q: Use the following information for the next 2 questions Roger buys a house costing $300,000. He puts…

A: Loan amortization refers to the equal and periodic repayment of loan including the interest. The…

Q: 5. Jay and Kei just acquired a new Honda Civic for 1,215,000 under the dealership's purchase…

A: Financing refers to raising funds by an organization or individual. But in personal finance, it…

Q: Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash…

A: Present value of future amount is computed by following formula:-PV = wherePV = Present value of…

Q: V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5…

A: The money's time value concept indicates that any sum is worth more now as compared to the upcoming…

Q: Mr Ahmad wants to borrow $30,000 for a delivery Van for his Bakery business, which is rovided by…

A: Amount to borrow is $30,000 Interest rate is 9% per year Compounded monthly Time period is 5 year To…

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: A young couple buying their first home borrow $90,000 for thirtty years at 7.6%, compounded monthly,…

A: Hi, since you have asked a question with multiple sub-parts, we will answer the first three, as per…

Q: college student wants to celebrate graduating and getting a job by spending $5,000 on a trip to Bali…

A: First we need to calculate annual Installments to be paid Solved using Financial Calculator  N = 5…

Q: 4) Brenda is buying a living room set for her home. At Furniture, Inc., she picks out a set for a…

A: With an installment loan, the borrower receives a fixed amount of money and repays it over a…

Q: rrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2=3.11% p.a. She will make 10…

A: Loan Amount$ 1000,000Interest rate3.11%Annual Installment10Loans are paid by equal annual payments…

Q: How much will Lee receive at the end of 6 years? (Use the Table provided.) Note: Note: Do not round…

A: We can determine the amount to be repaid using the formula below:In the formula above r = annual…

Q: William wants to borrow $42,000.00 today to purchase a car, which bank's lending option will allow…

A: Present Value of annuity formula is used to check if the loan present value of periodic payments.…

Q: John wants to do Task A. Task A will take two years and $40,000. $15,000 is paid after the 1st year.…

A: given, Annie will pay following payments on behalf of john: year 0 $40,000 year 1 $15,000…

Q: Lynn Ally, owner of a local Subway shop, loaned $48,000 to Pete Hall to help him open a Subway…

A: Amount of loan is $48,000 Interest rate compounded semi annually is 8% Time period is 9 years To…

Q: A contractor decided to borrow $7000 from a bank in order to buy an equipment for his company. The…

A: The arithmetic gradient formula is an important time value of the money method that determines the…

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.