You got a loan today of $10,000 for 3 years, annual interest rate is 6%. The annual payment is closest to: a. $2,674 b. $4,020 c. $2,890 O d. $3,741

Q: o i need formulas Annual Interest Rate: 3.69% Length of Loan (in years):   Loan Amount:…

A: Loans are paid by the equal installments and these installments carry the payment for interest and…

Q: What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of…

A: We need to use simple interest formula to solve this question Simple interest =Principal×Rate×Time

Q: Suppose you take out a loan for 180 days in the amount of $15,500 at 13% ordinary interest. After 40…

A: answer principal amount = $15,500 rate of interest = 13% partly payment  after 40days  partly…

Q: Loan 48,000 for 3 years with a rate of 10%, What are the total finance charges? Use an Amortization…

A:

Q: Suppose that you have borowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: Loan Repayment Calculation of the loan repayment is some what complicated and need to know the fact…

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…

Q: Suppose that you took out a loan at 12% interest for 200 days. If the amount of interest was…

A: Interest rate = r = 12% Time = t = 200 days Interest amount = i = $710.14   Number of days in Exact…

Q: rescott Bank offers you a five-year loan for $69,000 at an annual interest rate of 8.5 percent. What…

A: The value of money changes with time. Therefore, the time value of money considers the worth of…

Q: Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 8…

A: Amount borrowed = $5 millionPeriod of loan = 12 monthsStated rate = 8%

Q: Čreate a loan amortization table using the following information: Amount of the loan: $500,000…

A: Data given: Amount of loan = $500,000 N= 30 years Interest rate  in year 1= 3%    Working:: Interest…

Q: Bank A offers loans at an 8% nominal rate if you take a loan of Rs.200,000 for 5 years, what will be…

A: A periodic payment(PMT) comprises of both interest and principal, the interest amount would decrease…

Q: Calculate the monthly payment by using the loan amortization table:  (Round your answer to the…

A: Annuity: An annuity is defined as a series of payments, whether received or made, that are equal and…

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: Find the future value of this loan: $20,862 at 11.4% for 14 months. Group of answer choices A.…

A: Given information : Present value = $20862 Interest rate = 11.4% Time period = 14 months

Q: Find the monthly payment and estimate the remaining balance.

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: An interest problem: Suppose $1000 is invested in an account paying interest at a continuous rate of…

A: The accumulated value after one year with given continuous rate is calculated below:

Q: You have a student loan of 40,0005s that you want to repay in 10 years interest rates are at year…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one…

A: Annual rate of return = (Monthly fee / Amount Borrowed) * 12 Amount Borrowed = P200 Monthly Fee =…

Q: your given the following information about a home loan: loan amount 300000 number of years 25 years…

A: As per the Given Informatin we have, Loan= 300,000 Interest Rate Given=7% Upfront Rate=3% Total…

Q: What is the simple interest due on a 5 year loan of 4,00,000 if the annual rate is 6%.

A: Simple Interest is a method of calculating interest on the loan. It is calculated on the amount…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: 1) Future Value of anuity = P * [ { (1 + r )n -1 } /r ] where, P =  periodic payment r = interest…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: Assume you borrowed $20,000 and the terms of the loan include paying 4% interest for a period of 10…

A:

Q: Basic ARM is made for $250,000 at an initial interest rate of 6 percent for 30 years with annual…

A: Initial amount of loan = $250,000Interest rate for : Year 1 = 6% & Year 2 onwards = 7%Period =…

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: The question is based on the concept to calculate principal and interest on the loan amount in…

Q: A house price of $100,000 can be financed with two loans below with monthly payments. The total…

A: 1. Two-Loan Option: - $80,000 first loan at 5% for 30 years.   - Second loan: $10,000 for 30 years…

Q: how much would you need to pay annually to pay off a $5,000 loan at 4% with equal payments over 4…

A: The equal payment is the payment that has to be paid for over the period to settle the borrowed…

Q: Find the future value of this loan. $13,081 at 6.8% for 6 months The future value of the loan is $…

A: Future value of loan can be calculated by using this equation Future value(FV) =P(1+r)n Where P=loan…

Q: Compute the simple interest of a loan amounting to P50,000.00 payable in 8 months if the interest…

A: Simple Interest:   Simple interest is a method of calculating the interest that is charged on fixed…

Q: 4. An entity took GBP 32,000 loan for 4 years. Annual interest rate - 16%. Loan is repaid in equal…

A: We need to use an annuity due formula to determine the annual periodic payment. Annuity due is a…

Q: onsider a loan at 4.125% APR on 6 years for a $23,000 car a. Estimate the monthly payment (using…

A: Equated Monthly Installments are one part of the equally divided monthly outgoes to clear off an…

Q: Find the monthly house payments necessary to amortize the following loan. Then calculate the total…

A: 1). Monthly payment is calculated using following equation Monthly payment = A×(r/m)(1-1(1+r/m)n×m)…

Q: A bank offers a home buyer a 30-year loan at 6% per year. If the home buyer borrows $140,000 from…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Erindale Bank offers you a $58,000, four-year term loan at 7.0% annual Interest. What will your…

A: To calculate the annual loan payment, we can use the formula for the present value of an annuity:…

Q: Given that the $400,000 loan with a 8% interest rate over 4 years. Show how to get the beginning…

A: Monthly payment= Loan/(PVA, 8%,4 years) = 400000/3.31212 = $ 120768

Q: Use the following information to answer the next 3 questions. $280,000 Loan Amount 30 year loan with…

A: To convert the time period in months, multiply it by 12 To convert interest monthly, divide it by 12…

Q: You took a loan of 20000 KD today at an interest rate of 4.5%. You agreed to pay back the loan in 6…

A: N = 6 years i= 4.5% To calculate annual repayments , calculate PMT Annual repayment amount=…

Q: Find the future value of this loan. $8783 at 6% for 16 months The future value of the loan is $…

A: Principal amount is $8783 interest rate is 6% Time period is 16 months To Find: Future Value of the…

Q: Find the total amount that must be repaid on the following note described. $8,593 borrowed at 18.5%…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: If you borrow $100,000 at an annual interest rate of 10% for six years, what is the annual payment…

A: Given:

Q: You're borrowing $6,000 for 4 Years with a stated simple interest annual interest rate of 8.5%. How…

A: Borrowings = p = $6,000Term = n = 4 yearsRate of interest = r = 8.5%

Q: Toyota S murang auto finance company is prepared to offer you a loan of $38,000 to buy a new Toyota…

A: Loan amount (L) = $38000 n = 7 years r = 12% Let A = Annual repayment

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: How much is your loan payment based on the following: Time - 5 years Interest Rate - 5.8% Principle…

A: Time Period = 5 yearsInterest rate = 5.8%Principal Balance = $ 28,000Discount Rate = 4.2%

Q: A borrower takes out a 30-year mortgage loan for $150,000 with an interest rate of 6% plus 4 points.…

A: Effective annual interest rate is the percentage at which the amount of interest earned on an…

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.