A debt of ​$19,000 is being repaid by 15 equal semiannual​ payments, with the first payment to be made six months from now. Interest is at the rate of 5​% compounded semiannually.​ However, after two​ years, the interest rate increases to 6​% compounded semiannually. If the debt must be paid off on the original date agreed​ upon, find the new semiannual payment

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Present value = Future value / ( 1 + Periodic interest rate )Number of periods

Q: A debt valued of 375,000 pesos will be paid an equal payment at the end of each quarter for 5 years…

A: Time Period 5 years 6 Moths Interest rate compounded semiannual 14.00% Loan Amount…

Q: A debt can be repaid by payments of $3125.00 today, $2770.00 in two and half years and $4600.00 in…

A: To Find: Single Payment to settle debt four years from now

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: Here, Debt Amount is 8,800 Interest Rate is 5% Compounding period is Semi-Annual Payment Duration is…

Q: A debt of $17520 with internet at 6 % compounded quarterly is to be repaid by equal payments at the…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: Two debts, the first of $1300 due three months ago and the second of $2000 borrowed two years ago…

A: So you need to repay 2 debts in 1 payment. Let us break this down into 2 calculations. First DebtThe…

Q: A debt of 15,000 with interest at the rate of 15% compounded semiannually is to be amortized by 3…

A: Debt amount now (PV)=15000Interest rate 15%compoundinf semi annuallySo semi annually…

Q: A loan is to be amortized by equal payments of 500 each at the end of every six months for 10 years.…

A: Semiannual payment (S) = 500 n = 10 years = 20 payments r = 7% per annum = 3.5% semiannually Let L =…

Q: A debt of P40,000, whose interest rate is 15% compounded semiannually, is to be discharged by a…

A: Given,  The debt amount is P40,000 Interest rate 15%

Q: A owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with interest…

A: While determining the value of single payment on the focal date, all payments shall be compounded or…

Q: X has a 3 million dollar floating rate loan which is re-set every six months. The company wants to…

A: Following formula is used to compute the FRA Payment FRAP=R-FRA×NP×PY11+R×PYwhere, FRAP= FRA payment…

Q: A debt of RM800 due in four months and another on RM1,200 due in nine months are to be settled by a…

A: As you have asked multiple questions, we will solve the first question as per policy. Request you to…

Q: A debt of ₱10,000 with interest rate of 20% compounded semiannually is to be amortised by 5 equal…

A: Formula for present value :…

Q: P12,000 is borrowed now at 12% interest. The first payment is P4000 and is made 3 years from now.…

A: The interest is the cost of debt levied in order to hold the time value of money and inflation…

Q: Two debt payments, the first for $800 due today and the second for $600 due in nine months with…

A: In order to calculate the final payment, we will make use of focal date.

Q: To pay off a P100,000 loan , it is required that 20 semi -annual payments that is increased by…

A: A) P2,854  Explanation:

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Time period = 4 years First payment of lease = P 5,000 Annual decrease = P500 Interest rate = 5%

Q: A debt payment of $8000 is due in 108 months. If money is worth 6.7% p.a. compounded annually, find…

A: (a) Debt payment=FV=$8000 Time=108 months=9 years Interest rate=6.7% p.a.

Q: A debt of RM600 due in three years and RM800 due in four years is to be repaid by a single payment…

A: The figure is shown below for considering the time period:

Q: A debt of $24,000, which is due 8 years from now, is instead to be paid off by four payments: $8000…

A: Compound interest is defined as an addition of an interest to he sum of the loan that is principal.…

Q: A debt of P10,000 with interest at the rate of 20% compounded semi-annually is to be amortized by 5…

A: Amortization schedule can be defined as the schedule which shows the accumulated interest, remaining…

Q: A loan payment of $3200 was due 3 months ago, and another payment of $1800 is due in 6 months from…

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: of 12% per

A: Effective Rate-: The Effective Interest Rate, is simply an effective yearly or interest rate, annual…

Q: P2,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, the…

A: Under simple interest , interest is calculates on principal amount of loan. Formula of interest is…

Q: A debt of P43,000 whose interest rate is 14% compounded semi-annually, is to be discharged by a…

A: For the given problem, we need to compute balance of loan remaining after 6 payments and then shall…

Q: A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year.…

A: Given data; Debt amount = $10,000 interest rate = 6% compounded semi-annually number of payments =…

Q: A debt of P15,000 was paid for as follows: P4,000 at the end of 3 months, P5,000 at the end of 12…

A: Quarterly Interest rate = Annual Interest rate / 4 quarters = 18% / 4 = 4.5% per quarter

Q: A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year.…

A: Debt refers to the sum of money borrowed and later repaid along with interest. It can be repaid in…

Q: 0 is to be amortized by equal payments at the end of every quarter for 2 years. If the interest…

A: Debt refers to the desired sum of money borrowed by an individual or an entity through any financial…

Q: Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of…

A: Payment today = $ 1600 Present value of payment due in 15 months (5 Quarters)= $ 7200 Annual…

Q: A P28,000 debt at 15% interest compounded semi-annually is to be amortized at P2,250 every 6 months.…

A: The following is the amortization table. From this we can answer the 3 questions. Please note the…

Q: A loan of $28,000.00, made 6 months ago, will be repaid by 3 equal payments – one today, one in 11…

A:

Q: A man owes Php 15,000 with interest at 8% payable semi-annually. Equal payments at the beginning of…

A: Firstly we shall calculate the Semiannual payment using Excel's =PMT formula Then we shall prepare…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Total debt = RM 3,000 Time period = 3 years  Interest rate = 14%

Q: A debt of Php 150,000 is to be amortized by ten semi-annual payments, the first to be made 6 months…

A: Loan Amortization: A simple definition of amortization is the amount of principal and interest that…

Q: A loan is to be amortized by equal payments of P500.00 each at the end of every six months for ten…

A: solution given Interest rate 7% compounded semiannually Equal payments 500 Number of…

Q: find the final payment F.

A: A debt re-payment consists of loan amount and interest charged.

Q: A debt of P17,800 is amortized by making equal payments at the end of every six months for three…

A: An amortization schedule of the loan consists of the beginning balance, interest , semi annual…

Q: YOVO Limited provided a loan $2,000,000 to its subsidiary Carpe Diem Limited for 5 years which is…

A: Excel Spreadsheet:

Q: A debt is amortized for 4 years by a series of payments that decreases annually by ₱ 500, the first…

A: First payment = P 5000 Annual decrease = P 500 Annual interest rate = 5%

Q: 1. A debt of Php 150,000 is to be amortized by ten semi-annual payments, the first to be made 6…

A: Loan is an amount which is borrowed from external sources like banks and this amount is repaid in…

Q: A debt of Php 10,000.00 with interest at the rate of 20% compounded semi-annually is to be amortized…

A: Accrued Interest-  Accrued interest refers to the interest which has not been paid but has already…

Q: A debt of P15,000.00 with an interest at the rate of 16% compounded semi-annually is to be amortized…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A P350,000 debt is released at 6% compounded bi-monthly and is to be paid bi-monthly for 5 years.…

A: Debt = 350,000 Interest rate = 6%/6 = 1% per bi monthly period Total Time Period = N = 5 years i.e.…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Present value used to state that the current value is worth more as compared to the same amount in…

Q: A debt of 8,800 with interest at 5% payable semi annually will be discharged by payment of 1,200 at…

A: The amortization schedule can be prepared as follows : Periods Beginning amount Payment  Interest…

Q: A fully secured loan of P30,000 was to be amortized by 10 equal semi-annual payments, the first…

A: Loan amount (L) = P 30000 Total payments (n) = 10 r = 12% per annum = 6% semiannually Let semiannual…

Q: A company borrowed an amount of 400,000 dinars for a period of four years at a compound interest at…

A: Compound Present value of interest rate 5 % for the period of 4 Years  = 1/(1+r)n  R = Rate of…

Q: 6. A person has made an arrangement to borrow Php 1,000 now and another Php 1,000 two years hence.…

A: Solution:- Given, A person has made an arrangement to borrow Php 1,000  If the projected interest…

Q: An amount of P100,000 was borrowed and was to be repaid in ten installments at the end of every year…

A: Let the first payment = X Second payment = X + 1000 and so on n = 10 years r = 12% Loan amount (L) =…

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.