Suppose you owe $15,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 15,000(1.02 ✕ 0.95)t  dollars. How many payments will you have to make to get the balance below $200? (Enter the smallest such number of payments as an intege

Q: If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded…

A: Given: Present value = 1,000 Interest rate = 7% Periods = 25 weeks

Q: You decide to buy a car for $15,000.00 and decide to make payments of $1,100 each month. If the loan…

A: Using excel NPER function

Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.

Q: You wish to save $30,000 by making $1000 deposits at the end of each month. If the bank pays 4%…

A: Dear student, we need to use NPER and FV formulas in excel to solved this problem.

Q: You have $2,500 on a credit card that charges a 19% interest rate. If you want to pay off the credit…

A: The loan is the amount borrowed for the certain period of time. It costs the investor or the…

Q: You want to borrow $64,000 from your local bank to buy a new sailboat. You can afford to make…

A: The amount to be borrowed is $64,000 The monthly payment that can be afforded is $1,100 The time…

Q: You want to be able to withdraw $3,000 each month for 25 years. Your account earns 9% interest. How…

A: Given Information: Monthly withdrawal = $3,000 Time period = 25 years Interest rate = 9%

Q: how much more will that amount be

A: If credit is availed, then the total amount that is paid can be calculated as: Amount Paid = $ 150+$…

Q: the amount you need to save each month

A: given   fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: . Suppose you have a bank account into which you make $100 deposits each month. You find a bank…

A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months

Q: You have $5,000 on a credit card that charges 19% interest rate. If you want to pay off the credit…

A: Given; Principal= $5,000 Interest =19% annually or 1.58% monthly Time = 5 Years or 60 months (5*12)…

Q: You wish to buy a $10,000 dining room set.  The furniture store offers you a three-year loan with an…

A: Given information: Present value or principal value is $10,000 Number of years of loan is 3 Interest…

Q: A small businessman is about to acquire a machine whose price is $ 15,000 with VAT included. If the…

A: A. Payment in cash Cash payment = $15000(1-15%) = $ 12750   B. Installment to pay on credit Initial…

Q: You just bought a used car for $11,000 with no down payment using dealer financing at 4% APR…

A: Price of the Car is $11,000 APR is 4% compounded monthly Monthly payment is $300   To Find:- Time…

Q: You can earn .41 percent per month at your bank.   If you deposit $2,400, how long must you wait…

A: Using excel NPER function

Q: Recently, you made multiple large purchases on your credit card totaling $16,575. The interest rate…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You have $1000 in an account earning 4% APR compounded daily.  At the same time, you are to pay a…

A: Interest rate compounded daily is 4% Amount in account(PV) is $1000 Amount needs to pay in future…

Q: You want to borrow $68,000 from your local bank to buy a new sailboat. You can afford to make…

A:

Q: Friendly's Quick Loans, Inc., offers you "$4.30 for $5.30 or I knock on your door." This means you…

A: APR = [ ( Interest amount / Loan Amount ) * 365 / Frequency ] EAR = [ 1 + APR / 52 ]52 - 1

Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: ou could earn 3% on your money in your checking account, as long as the minimum balance does not…

A: The cost of checking account is the total cost which one has to bear for not maintaining the minimum…

Q: You have decided to buy a car with price tag of $30,000 but you are able to negotiate the price down…

A: A loan is a debt amount borrowed by a deficit unit from a surplus unit. The borrower is liable to…

Q: IF you deposit $300 each quarter into an account earning 3.2% compunded quarterly, how many years…

A: Given that;Quarterly deposit amount (pmt) is $300Future value of the amount is $15,000Interest rate…

Q: You just received your first credit card and decided to purchase a new Apple iPad. Youcharged the…

A:

Q: Matt Wilson has decided to finally pay off his credit card. He currently owes $6,500 and he has…

A: In this question payment is done on monthly basis but interest is compounded weekly. To solve the…

Q: Suppose you have a balance of $15000 on your credit card, which has an of APR 24% and requires a…

A: Honor code: Since you have posted multiple questions at once we will solve the first one for you. To…

Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…

A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…

Q: account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your…

A: interest rate =7.5% monthly interest =7.5/12=0.625 Future value =Present value (1+i)n

Q: How much is the effective cost if you need to borrow $400,000 for one year with $475,000 line…

A: Line of credit indicates the limit of credit facility allowed by a financing company to its customer…

Q: ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the…

A: To determine the interest amount and percentage that goes towards reducing principle.  The amount of…

Q: You owe your best friend $2,000. Because you are short on cash, you offer to repay the loan over 12…

A: Answer a) $2000=$100(P/A, 0.5%,12) + G(P/G, 0.5%,12)$2000=$100 (11.6189) + G(63.214)G=$13.26

Q: You want to buy a new sports coupe for $74,900, and the finance office at the dealership has quoted…

A: Loan amount (PV) = $ 74,900 Annual interest rate = 7.3% Monthly interest rate (r) = 7.3%/12 =…

Q: You have $3,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: PMT= Present Value of annuity/{1-[1/(1+r)^n]/r} Where r =rate of interest per period i.e. 14%/12=…

Q: Suppose you want to save $220,000 for retirement. You will do so by putting monthly deposits into an…

A: Retirement planning involves the set of activities that determines the income goals that an…

Q: You decide to buy a car for $16,000.00 and decide to make payments of $700 each month. If the loan…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: You have $4,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…

Q: 2) You wish to save $150,000 for a new car. You are going to make $5000 deposits at the end of each…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You have an outstanding credit card balance of $2,000. You decide to stop making new charges and pay…

A: Number of months required to pay the amount is calculated using the present value of annuity…

Q: You need $93,000 in 9 years.   If you can earn .60 percent per month, how much will you have to…

A: The amount required to deposit today can be calculated as the present value of sum

Q: If you owe $5,000 on a credit card that charges 18.99% apr and you decide to put no more charges on…

A: Loans are paid by monthly payment that carry the payment of interest and payment of principal amount…

Q: If you make monthly payments for 4 years, what is the total amount of interest that you'll end up…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: (1)If compounding monthly, how would I find percent and intrest of a problem? (2) How do I compute…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Recently, you made multiple large purchases on your credit card totaling $14,700. The interest rate…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: Your firm sells for cash only, but it is thinking of offering credit, allowing customers 90 days to…

A: Time value of money concept states that the worthiness of money in today's term is much more than…

Q: Recently, you made multiple large purchases on your credit card totaling $14,700. The interest rate…

A: A Credit card is a short-term bank loan, on which the borrower is supposed to pay interest on the…

Q: You just received your Citibank Mastercard bill and you owe $3,078.64. Your minimum payment is $57…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…

A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…

Q: Suppose you are in the market for a new car worth $18,000. You are offered a deal to make a $1,800…

A: Loan amortization schedule refers to the presentation of complete loan payments over the period of…

Q: You have $2,000 on a credit card that charges a 17% interest rate. If you want to pay off the credit…

A: Credit card amount due (PV) = $2000 Annual interest rate = 17% Monthly interest rate = 17%/12 =…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.