Margo borrows $400, agreeing to pay it back with 8% annual interest after 17 months. How much interest will she pay?

Q: Lauren plans to deposit $6000 into a bank account at the beginning of next month and $175/month into…

A: Future Value is the value which is measured at a specified date at a given interest rate,  it can be…

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: Lauren and Serena each have 59-week loans. At the end of their terms, they each repay $3,800.…

A: The major difference between a simple interest rate & a compound rate is that the interest…

Q: Roscoe signs a note for $2000 due in 18 months at 15% monthly. After five months, Gertrude sells it…

A: The present value would be considered as the value of the future value which is being received…

Q: Aiyana took a $72,000 loan at 2.83% compounded monthly and decided to make of month payments of…

A: A loan refers to a contract between a borrower and a lender where money is forwarded on the promise…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into…

A: Future value is the amount accumulated on the deposit made along with interest earned on the…

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: Rachael invests $8000 for 7 years and 8 months. The account earns 12% semiannually. A) What is n…

A: Future value of present sum depends on whether it is simple interest or compounded…

Q: Adrian's investment manager offers her an interest rate of 7.0% compounded monthly on her…

A: Here,Interest Rate is 7%Required Accumulated Amount is $424,000Time Period is 25 years

Q: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

Q: Jenny takes out a loan of $30000 from Westpac for her small business at 6.0% compounded monthly and…

A: Given Information: Initial loan amount (L) = $30000 Interest rate (r) = 6% per annum = 0.5% per…

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: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

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: must she

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

Q: Anna does not use her credit card for anything else and she pays off the $100 cash advance plus in…

A: Particulars Values Total Cash in advance  $100.00  Interest rate(APR) 18.000% Monthly Payment…

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: Olivia plans to secure a 5-year balloon mortgage of $220,000 toward the purchase of a condominium.…

A: A balloon payment is a large, lump sum payment made at the end of a long-term loan or mortgage. It…

Q: Allison is considering paying $400 a year for an extended warranty on several of her major…

A: Rate of interest =2% Period =5 years  Payment =$400 per year  Future value FACTOR =(1+r)n/r Future…

Q: Olivia plans to secure a 5-year balloon mortgage of $210,000 toward the purchase of a condominium.…

A: Olivia secures a balloon payment mortgage for a condominium of $210,000. The loan was amortized for…

Q: Olivia plans to secure a 5-year balloon mortgage of $220,000 toward the purchase of a condominium.…

A: The objective of this question is to calculate Olivia's monthly mortgage payment for the first 5…

Q: Emilio desires $9,000 as the proceeds of a 90-day loan from Winston who charges 5% interest in…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Megan invests $1, 500 at the end of each year into an account earning 2% effective annual interest.…

A: Part 1:  Future value of the annuity in the first accountYear Amount Deposited0 $1,5001 $1,5002…

Q: Peter Penniless owes Wendy Worth $5 000 due in two years from now, and $3 000 due in five years from…

A: annual rate = (1+ 12%/2)^2 - 1 = 12.36% Present value of the debt after making 4000 payment =…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Lia plans to buy a house for Php 157,950. She wants to make a down payment of Php 24, 937 and to…

A: Mortgage- A mortgage is a sort of loan used to buy or maintain tangible assets such as a home,…

Q: Abigail's calculations show that the total interest owed to Sanjeev on her 3, 700 loan is 177.60. If…

A: Step 1: Step 2: Step 3: Step 4:

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $5,400 in debt.…

A: Credit card debit amount is treated as the debt amount or loan amount which is required to be paid…

Q: Helen is buying a $12,375 car with a $3,000 down payment, followed by 36 months of $325. The down…

A: Price of car = $ 12,375 down payment = $ 3000 number of payments = 36 monthly payment = $ 325…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Samantha wants to be able to withdraw $520 at the end of each month for two years while she travels,…

A: Future value of investment = C(1+r)n Where C = cash invested = 9200 r = periodic interest rate =…

Q: 0-year conventio hat will be her m monthly payment alloon payment ner

A: Introduction: Under a mortgage balloon payments, the borrower will make regular monthly payments for…

Q: Stephanie borrows Php77,000 for 10 months at an interest rate of 12% per year. Find the interest…

A: Interest earned refers to the product of amount invested/borrowed, time period and interest rate.

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.