You purchase a washing machine and dryer for P750. You pay 20% down and agree to repay the balance in 12 equal monthly payments. The finance charge on the balance is 8% simple interest. a. Find the finance charge. b. Estimate the annual percentage rate. Round to the nearest tenth of a percent.

Q: After selling a bunch of old "junk" on e-bay, you have $500. You deposit the money into an account…

A: The annual percentage rate incorporates all the fees, charges, interest, rewards, and payments that…

Q: You can afford monthly deposit of $85 into an account that pays 6% compounded monthly. How long will…

A: Monthly Deposit(PMT) = $85 Interest Rate = 6% Interest Rate per month(rate) =  6%/12 = 0.50% Future…

Q: Timothy Lawrence plans to borrow $5,000 and to repay it in 36 monthly installments. This loan is…

A: The add-on interest rate method is a way of calculating interest in which the interest is calculated…

Q: Find the monthly payment for a bank loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Answer  Principle amount = $100 Interest rate =12% Time = 12 months

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Monthly payment: It is the payment paid by the loan holder to the lender every month in order to…

Q: Cray Computing needs a 5-month loan for $300,000. Its bank quotes a simple interest rate of 15% on…

A: Therefore, the estimated APR for the loan, assuming monthly compounding, is approximately…

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: The quoted annual rate on your credit card is 14 percent, and there is a $30 annual fee. If your…

A: A credit card is a financial tool that allows individuals to borrow funds from a financial…

Q: It is still three weeks until payday and you have run out of cash. You have just received an…

A: The rate that is actually earned on an investment is called the effective interest rate. It is also…

Q: An apartment unit in a rural area that sells for P1,800,000 can be purchased under terms requiring…

A: Price of  apartment (PV) = P1,800,000 Number of monthly payments (n) = 200 Interest rate = 12%…

Q: A car loan of $23,800 is to be repaid with bi-weekly payments of $164. How many payments are…

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

Q: If you buy a computer directly from the manufacturer for $2,815 and agree to repay it in 36 equal…

A: Present value = pv = $2815 Compound = monthly = 12 Number of payment = n = 36 Interest rate = r =…

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: An annuity providing a rate of return of 4.8% compounded monthly was purchased for $51,800. The…

A: future value refers to an amount accumulated at the end of the period for the purpose of earning on…

Q: nk will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of…

A: Effective interest rate is the interest rate after considering the impact of compounding on interest…

Q: Jane Doe plans to make twelve end-of-month payments of $18,000 each on a short term investment…

A: The time value of money (TVM) is a financial concept that recognizes the idea that money has a…

Q: Stan Slickum has a used car that can be bought for $8,500 cash or for a $2,000 down payment and $750…

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

Q: Suppose Marty borrows $300,000 at 4% for 30 years, monthly payments. The APR on the loan is 4.25%.…

A: Step 1: I/Y=4.25%/12N=12*30PV=300000CPT PMT=$1,475.82 Step 2:PMT=1475.82I/Y=4%/12N=12*30CPT…

Q: You make a one-time $3,088 deposit into an account which pays 2.8% compounded weekly. If you don't…

A: using excel fv 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: Find the monthly payment for the loan. (Round your answer to the nearest cent.) New-car financing…

A: Loan amount (P) = $ 12850 Annual interest rate = 2.8% Monthly interest rate (R) = 2.80%/12 =…

Q: nth. Round all values to the nearest cent. A. What is the finance charge for this first month? B.…

A: finance fee is the interest  pay on a loan you owe,If you carry a debt from one payment month to…

Q: Construct NPV profiles for Plans A and B. Enter your answers in millions. For example, an answer of…

A: We will use the concept of capital budgeting in this case. The tools of NPV and IRR will be used…

Q: You take out a $7,400 car loan that calls for 36 monthly payments starting after 1 month at an APR…

A: It is a case of amortization of a car loan that is to be repaid in 3 years as a monthly payment or…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) New-car financing…

A: To amortize means to spread out the cost of a loan or intangible asset over a specific period by…

Q: A computer is being sold for RM5,000 cash. Through an instalment purchase, the purchaser has to pay…

A: Reducing balance method means that interest is charged on the principal amount of loan outstanding…

Q: In one year you will receive 1800. In two yeara you will receive 1, 900. The discount rate is 4%.…

A: PV = FV / (1 + r)nWhere:PV is the present valueFV is the future valuer is the discount rate (here,…

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: You borrow $5000 now and agree to pay this whole amount back in three payments Poyment 1. SX in 2…

A: Discounting of money is the process of determining the present value of future cash flows. The…

Q: If you buy a computer directly from the manufacturer for $2,668 and agree to repay it in 48 equal…

A: Formula:- Present value of annuity. PV = A * 1 - (1+r)-nr where , PV = Present value of annuity. A…

Q: Find the monthly payment on an auto loan of 200000 to be akortized over a 5-year period at a rate of…

A: Given Information : Auto loan - 200000 Period - 5 years Rate - 9%

Q: How much is the fee if you need to borrow $400,000 for one year with $475,000 line credit, where any…

A: The fee for unused credit is calculated as the unused credit multiplied by the charge for unutilized…

Q: You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments…

A: Monthly Payment (PMT) = P * r * [ (1 +r)n /({1 + r}n -1)] Where P = Principal amount borrowed…

Q: A house costs $147,000. It is to be paid off in exactly ten​ years, with monthly payments of…

A: Given information: Cost of house is $147,000 Monthly payment is $1,783.52 Number of years is 10

Q: SM corp has loaned you P1,000. The interest rate you must is 20% compounded monthly. The loan will…

A: Given: Loan amount =P1,000 Interest rate = 20% Periods = 24 Compounding = monthly

Q: Find a formula for the balance 8 after t monthly payments.

A:

Q: Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a…

A: Discount rate is 30% nominal monthly Monthly rate is  30%12=2.5% Total number of payments are 15…

Q: 3. Financing is offered with the following terms: $24,000 cash now repaid with 24 equal monthly…

A: The objective of the question is to find out the monthly and annual interest rate for a loan of…

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: You have a credit card with an APR of 20%. The minimum payment is 12% of the balance. Suppose you…

A: Credit cards are common now days and but there are many cost related to the credit card ,so there is…

Q: You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.