Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will receive after 12 years? Also comment on what effect will she get on her initial deposit if the rate is changing to 10% if she still willing to receive the same sum after 12 years.

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

Q: decided to deposit ISK 200, 000. deposit into a bank account, annually, for the next 5 years, which…

A: Annual deposit=ISK 200000Interest rate for 2 years=8%Interest rate for 3 years=6%

Q: Abdullah's current salary is $80,000 per year, and she is planning to retire 25 years from now. He…

A: Here,Annual Income is $80,000Increase in salary every year is $300Deposit % is 6% of Annuall Salary…

Q: Q) Susan is 22 years old and today she opened a savings account that offers an interest rate of 12%…

A:

Q: Your sister just deposited $6,500 into an investment account. She believes that she will earn an…

A: Present Value (PV) calculates the current worth of a future sum of money or a series of future cash…

Q: Your daughter is currently 10 years old. You anticipate that she will be going to college in 8…

A: The PV of an investment refers to the value of the cash flows of the investment assuming that they…

Q: 1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her…

A: IN finance the time value of money is considered so there is present value and future value concept…

Q: If she starts making deposit amounts in one year and her deposits increase at the inflation rate of…

A: Inflation:  The Wholesale Price Index's (WPI) annual percentage change in value is known as…

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Step 1). Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: Gabriel is able to save 10,000 pesos every month from his salary. If he decides to invest in a…

A: >Future value of any amount invested is the sum total of amount invested and the interest earned…

Q: David invests $300 into an account with a 2.3% interest rate that is compounded semiannually. How…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: d. Ja d. 1

A: In this question future value when deposits are made at the beginning as well when deposits are made…

Q: To secure the future of his son, a man plan to deposit P50,000 in a bank account every quarter for 5…

A: Effective interest rate There is different frequency of deposited amount and the compounding of…

Q: hat do you think the future worth of her investment will be?  b. How much interest will she earn?

A: Interest: Interest is the income generated from investing an amount in a bank or any other financial…

Q: Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15…

A: Here we can use the concept of time value of money. The concept of time value of money states that…

Q: she leaves the money in this mutual fund how much will she have 13 years after the inheritance?…

A: SOLUTION:-   Formula :-   A=P(1+rn)nt n= type of compounding i.e monthly, daily P= present…

Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

Q: Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

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

Q: Tanya wants to be able to withdraw $7000 at the end of 7 years and $9000 at the end of 8 years. If…

A: Present value is the value of future cashflow discounted to present date at specified rate. formula:…

Q: Allan plan to go to London to visit friends in three years. The trip is expected to cost a total of…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Your sister just deposited $9,000 into an investment account. She believes that she will earn an…

A: The concept of time value of money will be used here. Since future value has to be computed we will…

Q: A newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is…

A: The objective of the question is to calculate the total amount to be paid to the bank, the monthly…

Q: He wants to deposit his savings into a bank account. How much does Jacob have to deposit now in the…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the…

A: First  we need to calculate the interest rate. Given,  Amount will be doubled in 5 years and it is…

Q: Your sister just deposited $12,000 into an investment account. She believes that she will earn an…

A: Present value : Present value is a financial concept used to determine the current value of future…

Q: a wants to give her daughter Mara a financial gift on the latter's college graduation two years now.…

A: Solved using Financial Calculator  PV = -2,000 FV = 5,000 N = 2 years * 4 quarters = 8 CPT I/Y =…

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: Alani plans to invest $500 into an IRA at the beginning of every month for the next 20 years. She…

A: An annuity refers to a stream of cash flows that occurs on a periodic basis and the cash flow…

Q: Ann would like to have $20,000 saved in 7 years from today and can earn 3.8% on deposits. She plans…

A: we will find future value of each deposits and sum of all future values shall be equal to 20000

Q: How much will be in Sarah’s account in 10 years if she deposits $5000 in an account that pays 10%…

A: the balance in the account will be the amount deposited along with the interest accrued over the…

Q: How much do you think her parents must deposit now in order for her to have a total of RM30,000 at…

A: Present Value: It is the present worth of the annuity payments or savings made in the future.…

Q: Your grandma wishes to provide P40,000.00 to your youngest brother on his 21st birthday. How much…

A: We have to find the annuity that will result into a target accumulated value at a pre determined…

Q: Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one…

A: in this we have to use future value formula to calculate interest rate.

Q: To secure the future of his son, a man plan to deposit P50,000 in a bank account every quarter for 5…

A: Solution:- When an amount is deposited each period at beginning of period, it is called annuity due.…

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.