11. Determine the principal that will earn $294 in 5 years at 6% per annum simple interest. 12. Determine the principal that will carn $200 as simple interest after 8 years at 5% per annum. 13. Mr. Frank's bank pays interest at 8 per annum on money he has on deposit. What amount is in his account if the simple interest for 7 months is $42? 14. Calculate the amount of money invested at 11% per annum, when $330 simple interest was

Q: Suppose you borrowed $30,000 on a student loan at a rate of 8% and must repay itin three equal…

A: Loan Amount = $30,000 Interest Rate = 8% Time Period = 3 Years

Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…

A: In Simple Interest Case, FV = PV + (PV x r x n) FV = PV x {1 + (r x n)} Therefore, PV = FV / {1 + (r…

Q: 4. If $2,000 is invested in an account that earns 8.5% interest compounded annually for 5 years,…

A: Interest refers to the cost of borrowing funds or money from other parties. Interest usually is of…

Q: Suppose that you deposited $5,000 in a savings account. It has been 15 years and your current…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: A loan of $20,000 has a stated interest rate of 5 percent per year. Repayment of principal and all…

A: Loan Amount is $20,000 Interest rate is 5% per year. Time Period is 10 years.

Q: A debt of ​$40,000 is repaid over 12 years with payments occurring annually. Interest is 4%…

A: Effective annual interest rate If the interest rate has compounding other than annually, the…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

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

Q: Use Table 12-1 to solve.   Suppose a certain manufacturer deposits $7,000 at the beginning of each 3…

A: The question is based on the concept of Annuity.

Q: 1. First City Bank pays 7 percent simple interest on its savings account balances, where Second City…

A: 1) Simple interest rate of First City Bank (r) = 7% Compound interest rate of Second City Bank (i) =…

Q: 1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a…

A: 1) Borrowed amount (B) = $250000 r = 9% n = 4 years Let the annual loan payments = A

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: How much money must you deposit now at 6% interest compounded quarterly in order to be able to…

A: The given problem can be solved using PV function in excel. PV function computes current balance…

Q: 1. What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for…

A:

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: To establish a "rainy day" cash reserve account, a certain company deposits $14,000 of its profit at…

A: In the given question we need to calculate the future value of the account after 4 years and after…

Q: 3. Mr. Bainto has a loan that is to be amortized by paying monthly payments of P 3,200 for 1 year.…

A: Monthly payment (P) = P 3,200 Number of payments (n) = 6 Interest rate = 12% Monthly interest rate…

Q: If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid…

A: A bank is a financial institution that provides loans and borrowings to the borrowers or the…

Q: Suppose that ​$290,000.00 is owed on a house. The monthly payment for principal and interest at 8.0%…

A: The amount paid by the borrower on the amount owed is regarded as interest rate.

Q: Billy Thornton borrowed $155,000 at a rate of 7.25%, simple interest , with interest paid at the end…

A: The interest that Billy would have to pay in a 30-day month is computed as shown below:   Interest…

Q: Suppose a company borrowed $1 million at a rate of 9% simple interest, with interestpaid at the end…

A: The question is based on the concept of calculation interest on the principle. Formula as,

Q: 22. Marcia invested $35,000 at 3.75% compounded monthly for the first two years and at 4.5%…

A: The maturity amount can be calculated with the help of future value function. The total interest…

Q: How much money to be invested in a bank that earns 9% interest, compounded quarterly, in order to…

A: Interest rate = 9% Quarterly interest rate (r) = 9%/4 = 2.25% Future value (FV) = 5000 Period = 5…

Q: A person invested two amounts in a bank for a full year at a common interest rate. The total…

A: in this question one has to find the interest of the first amount in numerical terms as well as in…

Q: A principal of ₱86,000 will amount to how much when invested 2 years and 6 months at 11.25%…

A: To calculate the future value of principal we will use the below formula   Future value = P*(1+r)t…

Q: A company deposits $2.000 In a bank account at the end of every year for 10 years. If the bank pays…

A: The future value of annuity is the accumulated value of regular deposits at a given interest rate.…

Q: 20. $1,000 is deposited each month in an account paying 4.23% for 15 years. Then, $350 is deposited…

A: Note : As per our guidelines, we can only answer one question at once. Please post other question…

Q: Devran Food Products Inc. He received a factory investment loan of 4 million TL with a maturity of…

A: Debt as of the end of the year is the future value of the present value of the loan amount. It is…

Q: Suppose you invest S11.570.00 Into an account 3.417% compounded weekly. How much money is in the…

A: In this question one has to find the future value with continuously compounded for 2 years and then…

Q: 15. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account…

A: Today's deposit = $8,000 Deposit in year 1 = $14,000 Deposit in year 2 = $10,000 Interest rate = 8%…

Q: Use Table 12-1 to solve. Suppose a certain manufacturer deposits $7,000 at the beginning of each 3…

A:

Q: 1. If 5,000 earns 86.00 interest in 15 months, how much is the rate of  interest?

A: 1) Assuming simple interest = r Principal = P = 5000 Interest = I = 86 n = 15 months = 1.25 years

Q: To establish a "rainy day" cash reserve account, a certain company deposits $12,000 of its profit at…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: What lump sum should be deposited in an account that will earn 8% compounded every 4 months, to grow…

A: For solving this we need to calculate the present value of future using discount rate and period.

Q: 1. What is the simple interest for a principal of $650 invested at a rate of 9% for 5 years?

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

Q: Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year…

A: Account value at the end of 15 years (if interest is calculated only on principal amount) is…

Q: Suppose that $ 1,500 is placed into a bank account at the end of each month over the next 8 years.…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: Suppose that $30,000 is invested at 9% interest. Find the amount of money in the account after 7…

A: Future value of money is amount being deposited and amount of compounded interest accumulated over…

Q: Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year,…

A:

Q: 17. Brix invested P500,00.00 in a long-term savings account with an interest rate of 7.5% compounded…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: What is the simple interest for a principal of 560 dollars invested at a rate of 9% for 5 years?

A: The simple interest rate is calculated by multiplying the principal amount with the annual interest…

Q: Suppose that $4500 is invested in an account that pays 2% annually and is left for 4 years. 1) How…

A: Given Information:  Principal = $4,500  Rate = 2% or 0.02  Time = 4 years

Q: 1. a. In a savings account 3% annual interest rate compounded monthy, P 1,000 is deposited at the…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…

Q: A banks lends a customer OMR 6,000. At the end of 9 years he repays this amount plus interest. The…

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

Q: The salary of Mr. Cruz is increased by 30% every 2 years beginning January 1, 1982. Counting from…

A: Since you have asked multiple questions we will solve the first question for you. Please ask…

Q: Billy Thornton borrowed $60,000 at a rate of 7.25%, simple interest, with interest paid at the end…

A: Introduction Simple interest: Simple interest is the fixed amount charged on loan taken by the…

Q: You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily…

A: Invested amount (P) = $ 2000 Annual interest rate = 4% Daily interest rate (r) = 4%/365 =…

Q: Suppose a bank pays you 4% interest compounded quarterly. You deposited $10,000. How much will you…

A: If interest is computed on the actual loan amount, then it is simple interest. When the interest is…

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.