The interest rate is 10% compounded annually. What percentage of the 2nd payment will be interests?

Q: A cash loan is to be repaid by paying $13,500 at the beginning of every month for 3 years. If…

A: Here, Monthly payment = $13,500 Number of years = 3 years Interest rate = 12% Payment at the…

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: you borrow $2,700 at 8% simple interest per year for five years, how much will you have to repay at…

A: interest =p×r×t100where,r=rate of interestp=principal t=years

Q: You own the right to receive a sequence of payments. The first payment is $4000 and is received…

A: A stream of cash flows in perpetuity has been provided. The present value needs to be determined.…

Q: Loan Rp. 1,000,000,000 is subject to 15% annual interest and must be returned in uniform annual…

A: Given: Initial Loan amount = 1,000,000,000 Annual interest rate = 15% Number of years = 10 Since,…

Q: Lorkay Seidens Inc. just borrowed $25,000. The loan is to be repaid in equal installments at the  22…

A: Annual payment refers to the amount that is paid at the end of each year for the repayment of the…

Q: You borrowed $10000 with an interest rate of 12%. The loan is to be repaid in equal monthly payments…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Imagine the company that you work for borrows $8,000,000 at 8% interest, and the loan is to be paid…

A: The loan borrowed would be given, with the interest amount. The interest should be paid on the given…

Q: A company borrowed $100,000 from a local bank. The loan requires 10 equal annual payments beginning…

A: An annuity is a succession of payments used to cover or reimburse a one-time expenditure. Using the…

Q: Problem #1: A loan is amortized over 8 years, with monthly payments at a nominal rate of 7.4%…

A: Mortagage amortization refers to the systematic repayment of loan and interest. Equal and regular…

Q: You have a student loan of 40,000$ that you want to repay in 10 years. Interest rates are at 6% per…

A: Since an amount is paid annually over the loan period, it is a type of annuity. The present value of…

Q: A demand loan of $10,000 is repaid by payments of $5000 in one year, $6000 in four years, and a…

A: Loan amount refers to the money that is borrowed by the borrower from the lender at specified rate…

Q: You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2…

A: Given information: Initial value of investment (V0) = $8,500 Annual interest rate for first "eight"…

Q: You borrow $110,000; the annual loan payments are $16,753.02 for 30 years. What interest rate are…

A: Borrowed amount = $110,000Annual loan payment = $16,753.02Number of years = 30 years

Q: An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the…

A: Deposit=$115503 years , interest rate is 2.2% compounding monthly5 years, interest rate is 1.95%…

Q: 1. How long will it take for your P18,000 to be doubled if invested at 3% simple interest?  2. The…

A: Simple interest formula: Amount Received=Principal×1+rate×time

Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

Q: Set up an amortization schedule for a $25,000 loan to be repaid in equal installment at the end of…

A: Amortization Schedule refers to a table that shows the total amount of interest and principal…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A:

Q: 3. A 10,000 loan is taken out and the interest rate is 8 percent effective. Payments are made on the…

A: GIVEN, Loan is taken  - $10000            Interest rate  - 8% Paayment is to be completed in 10…

Q: An installment loan for $18,000 has terms such that monthly payments of $180 are made for 10 years.…

A: Workings:- Time Period of Payments(in years) = 10 years Time Period of Payments(in months) = 10*12…

Q: I promise to pay you 25 annual installments of $5,000 starting five years from today. If the…

A: Present Worth: It is the present value of the annuity cashflows discounted over a period of time.…

Q: You borrow ksh 1,000,000 from a bank for 5 years at 10% compound interest .The loan is repayable in…

A: Present value (PV)= 1,000,000 Time (t)= 5 years Rate (r)= 10% = 0.1   The present value is how much…

Q: What are the annual payments for years 1 to 30? What is remaining balance at the end of each year?…

A: Information Provided: Loan amount = $120,000 Year of loan = 30 years Interest rate = 10%

Q: Consider a loan of $88,000 at 4% compounded annually. (a) the payment necessary to amortize the loan…

A: When we take a loan we make periodic payments towards that loan.   The periodic payments will…

Q: Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at…

A: Step 1: Step 2: Step 3: Step 4:

Q: 1.Assume that you deposit $946 into an account that pays 11 percent per annum. How much money will…

A: Time value of money refers to the concept that money available at the present time is worth more…

Q: A loan of $16,000 with interest at 10% compounded semi-annually is repaid in 9 years by equal…

A: A loan is a financial arrangement between two parties in which one party borrows funds at a…

Q: Suppose you borrowed $45,000 at a rate of 8.4% and must repay it in 5 equal installments at the end…

A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal…

A: First let us calculate the 4 equal half yearly payments that need to be made. This can be calculated…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A: It is method of computing interest where interest is calculated over interest as well.

Q: Suppose that you have borrowed $125,000 in the form of a 30-year loan with an annual interest rate…

A: A loan payment includes the interest as well as the principal amount of loan which has been obtained…

Q: a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end…

A: The above question deals with the amortization of loan by way of annuity payments and observing the…

Q: If you invest $4,000 at the end of every year for nine years at an interest rate of 6%, the balance…

A: Future value in case of continues payments  = Each installment × (1+pir) ^n/pir Where  pir =…

Q: pital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, Invested into the same…

A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…

Q: 16. You borrow $27,000 to purchase a plane. The loan will be paid in monthly installments over one…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: rate of 8% compounded monthly that will be re-paid 15 monthly payments starting at the end of the…

A: The more is the compounding of interest than more is effective interest rate and due to which less…

Q: You borrow a GPM of $120,000 with annual payments and 30-year term.  The interest rate is 10%. The…

A: Here's how you can solve this problem using Excel:a. Annual Payments for Years 1 to 30Set up a…

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.