Problem 4: What end-of-month deposits for the first six months should Joshua have if he is planning to withdraw equal amounts of P4,000 for the tenth, eleventh, and twelfth month if the bank is paying an interest rate of 2.2% monthly?

Q: How much would you need to deposit in an account now in order to have $5,000.00 in the account in 13…

A: Simple interest is an interest that is calculated on the initial investment.

Q: Q2): A person deposits $28,500 into a savings account that earns 5% interest per year. At the end of…

A: Given That: deposited money(P)= $28500 Interest rate (r)=5%=0.05 per year Amount wants to be…

Q: Sherry deposits $1000 in a bank account that pays 6% annual interest compounded monthly. She then…

A: Here,ParticularsValuesPresent value (PV) $1,000.00Interest rate6.00%Monthly deposits (PMT) $…

Q: How much do you have to deposit now with a second deposit in the amount of $700 at the end of the…

A: Second deposit at the end of first year is $700  Amount withdraw at the end of year 2 to 4 is $150…

Q: You have $200.00 in your bank account today. Your bank offers a nominal annual rate of 16%,…

A: Information Provided: Present value = $200 Interest rate = 16% compounded quarterly Term = 8 years

Q: how much will you have when it matures?

A: A certificate of deposit (CD) is a financial product that banks and credit unions offer to customers…

Q: What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can…

A: An annuity is a sequence of payments or deposits occurring at equal intervals of time for a given…

Q: 8. Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount…

A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…

Q: You want able to withdraw 15,000 each month for 15 years. your account earns 3 1/4% interest. a.…

A: Investments are the ways in which individuals and corporations park and save their money and funds…

Q: You made a deposit of $200 in your bank account today and you plan to make a further deposit of $20…

A: The objective of the question is to calculate the final amount in the bank account at the end of the…

Q: a) You have a bank account that earns 6.8% interest rate. How much must you deposit (prinicipal) in…

A: The Future Value is calculated with the help of following formula  Future Value = Principal Amount ×…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Future value = Present value ( 1 + rate of interest )Period Future value = Amount deposited * Future…

Q: PROBLEM 12 How many days will it take for a sum of $1000 to earn $20 interest if it is deposited in…

A: When an individual deposits a certain amount of money in a bank, the bank pays simple interest on…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

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

Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…

A: Formula for calculating weekly interest rate is:

Q: Marcus is trying to decide which checking account to open.  Bank A's account pays 1.6%, compounded…

A: To compare the returns on two different accounts, we need to calculate the effective annual interest…

Q: You want to lend $500 as a bank deposit in a private bank with an interest rate 9% per month. You…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Suppose that your parents decide tổ make deposits into a savings account, With the first deposit…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Effective rate of interest Engr. Roxas plans to deposit P20,000 in the bank now and P20,000 after 2…

A: Annual Rate = 10% Semi Annual Compounding Number of compounding periods = 2 Initial Deposit = 20,000…

Q: You plan to deposit into your bank account $100 two years from now, $200 three years from now and…

A: A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…

Q: SAVINGS ACCOUNTS If Jackson deposits $100 at the end of each month in a savings account earning…

A: We here need to use future value of ordinary annuity(payment due at end) formula for calculation of…

Q: Bank A pays 7% simple interest on its savings account balances. Bank B pays 5.5% interest compounded…

A: STEP 1 Simple interest is the amount of interest charged on a specific principal amount at a…

Q: Suppose I want to be able to withdraw P500,000 at the end of five years and withdraw another…

A: The present value of money is the discounted value of future cash flows required. The amount to be…

Q: Joan has savings of $12,000 on June 1. Since she may need some of the money during the next three…

A: We have two investment options. We need to find how much more is possible in one option over the…

Q: How much will be in Amber's bank account after 2 years if the account pays 8% compounded…

A: Time period = 2 years  Interest rate = 8% Compounded = semi-annually  Semi-annual deposits =$800

Q: If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited…

A: Simple interest "The interest to be paid or received is calculated on the basis of the principal…

Q: 1. Carlo regularly deposits a certain amount K in a bank account which credits com- pound interest:…

A: As asked in the question, only (a) is to be answered Future value refers to the amount of a current…

Q: Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually.…

A: Time = t = 10Interest Rate = r = 6.5%Present Value = pv = $2000

Q: Ramoncito deposited P15,000.00 today and  he deposited the same equal amount each month for the next…

A: Future value of annuity due Annuity is a series of equal payments at equal interval for a specified…

Q: 7. How much must Brix place in his account at the end of each month in order to have P125,000 at the…

A: Since the given post has multiple questions, only the first question is answered here. If you want…

Q: Problem 4: What end-of-month deposits for the first six m hould Joshua have if he is planning to…

A: The future value of amount includes the amount being deposited and amount of interest being…

Q: Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years…

A: Given amount of deposit = $1,000 Rate of interest = 6%

Q: answer the questions

A: 1. The computation of the EAR (effective annual rate) of each option is shown below: 10% interest…

Q: ery month. What is the APR?

A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed…

A: A monthly deposit refers to an amount that is deposited every month in the bank on which the bank…

Q: er deposits P15,500 each quarter in a savings bank paying 12.5% compounded quarterly. If she desires…

A: Future value of amount include the amount being deposited and interest being accumulated over 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.