Your child's orthodontist offers you two alternative payment plans. The first plan requires a $3,900 immediate up-front payment. The second plan requires you to make monthly payments of $129.56, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?

Q: Gage is suppose to receive a payment of $480.00 today from Mark. One month from today, Gage should…

A: Interest rate = 2.95% per annum Payment to be received today (P0) = $480 Payment to be received…

Q: Roger has found a home to be purchase for $219,626 and has agreed to pay 30% down. Find the amount…

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

Q: Ryan obtain a nine year subsidized loan of $26,000 at an annual interest rate of 4%. If Ryan…

A: Here, Loan Amount is $26,000 Annual Interest Rate is 4% Income Adjusted Repayment is $275 per month

Q: You loan a friend $200 and are repaid $30 at the end of each month for the first 3 months and $120…

A: Rate of return = ( amount received at the end - amount invested) ÷ amount invested.

Q: You are to make monthly deposits of $725 into a retirememt account that pays an APR of 10.1 percemt…

A: Future value is the expected value of current regular deposit at a future date, at a given rate of…

Q: Assume that you are planning for your child's education. You would like to make deposits every 26…

A: The concept of TVM refers to the interest-earning capability of money and is used to find the value…

Q: Sue obtains a one-year loan of $2,700 based on an interest rate of 10 percent compounded annually…

A: Compound = monthly = 12Time = t = 1 * 12 = 12Present Value = pv = $2700Interest rate = r = 10/12%

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: You are about to graduate from blank but you still owe $12,000 for tuition. blank offers you the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Anny takes out an installment loan to finance the purchase of a pickup truck costing $14,100. Her…

A: Introduction: Installment: Its a method of payment paying monthly , semi annually , annually etc.

Q: Your child's orthodontist offers you two alternative payment plans. The first plan requires a S…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: Your grandmother will be gifting you $150 at the end of each month for four years while you attend…

A: Monthly gift amount = $150Year = 4Discount rate = 3.7%To find: The worth of these payments on the…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a…

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A: A mortgage loan is generally taken to purchase or maintain real estate. The borrower pays the lender…

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

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A: In the Market, some factors are present such as inflation, market rates, and investment…

Q: You decide to buy a $ 1,500 piece of furniture at a local furniture store. The furniture store asks…

A: Annual rate (r) = 25% Number of compounding per year (m) = 12

Q: A career counselor decides to make monthly payments of $150 on credit card debt of $3,475.58 and…

A:

Q: A financial planning service offers a college savings program. The plan calls for you to make six…

A: The question is related to Return on Investment. The ROI is calculated with the help of following…

Q: The final payment the bank will require you to make is ​$

A: This is the case of Future Value of annuity Future Value of annuity = PMT * [ {(1+ r)n -1}/r]where…

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A: Value of the monthly amount of $130 is calculated as the present value of annuity using following…

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: Solution: An equal amount paid each period is known as annuity. Future value of annuity = PMT x…

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Q: A married couple has looked at their budget. After review, they can afford a monthly mortgage…

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Q: You are working at Grey Company. You purchased a house in 2020. Gray Company gave you a housing loan…

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A: Required :To compute the number of fewer payments if monthly payments are increased to $200.

Q: Which of the following is an annuity? Group of answer choices A car loan that has a $400 per month…

A: Annuity is a financial product or contract offered by insurance companies, investment firms or…

Q: You attend college and have 2 loans: A SUBSIDIZED loan for $40,000 with 3.88% APR, and an…

A: Assumption: It is assumed that the time period of the loan is 10 years.

Q: You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you…

A: Simple interest is calculated by multiplying borrowed amount , interest rate and time.   Simple…

Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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A: Given:  Monthly payment =$150  Credit card debt = $3,496.46, Monthly Interest rate, r = 1.85%…

Q: Tuition of $2075 will be due when the spring term begins in 6 months. What amount should a student…

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Q: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment

Q: How much should Timothy's dad invest into a savings account today, to be able to pay for Timothy's…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: You purchase a home costing $480,000 with a 20% down payment. After shopping around for a mortgage,…

A: Thus, Monthly Payment in option 1 is $1583.32 and in Option 2 is $1586.07

Q: Your grandma pays upfront for you to go on the overnight trip with the school, which cost $340. You…

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Q: You have your choice of two investment accounts. Investment A is a 7-year annuity that features…

A: The time value of money technique explains the concept that the rupee received today is worth more…

Q: A new homeowner is purchasing a living room set for $2,590 and must decide between two financing…

A: Total cost refers to the total price paid by the buyer to acquire the commodity. If the commodity is…

Q: to purchase a vacation home. The bank requires a 5% down payment on the $450,000 vacation home. The…

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Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: As per our guidelines we are supposed to answer only 3 sub- parts if there are multiple sub-parts.…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.