A debt of $5600 is repaid in equal monthly instalments over three years. Interest is 7.3% compounded quarterly. (a) What is the size of the monthly payments? (b) What will be the total cost of borrowing? c) What is the outstanding balance after one year?

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: Rounded to the nearest cent, find the amount of money accumulated in 5 years if $14000 is invested…

A: Given information: Present value amount is $14,000 Number of years is 5 years Interest rate is 10%

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. What…

A: "Hi, Thanks for the Question, Since you asked multiple sub parts, we will answer first three sub…

Q: A mortgage of $100,000 is amortized over 20 years with monthly payments. The interest rate is 6%…

A: Amortization is the process of writing off the initial cost or the total cost of an asset.…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Quarterly Payment = 4500 Time Period = Number of quarterly payments = 16 quarters Quarterly Payment…

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: We need to use future value of ordinary annuity formula to calculate monthly payment PMT =FVn(1+r)n…

Q: A loan of $14,800 is to be amortized with quarterly payments over 7 years. If the interest on the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: Rate of return is the return earned on an investment. It is always expressed in percentages. Rate of…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Hence, payment made for year 1 is $3,000, year 2 is $2,400, year 3 is $1,920, year 4 is $1,536 and…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for four…

A: Annual interest rate = 8% Number of compounding per year = 6 Effective annual rate = (1+0.08/6)6-1…

Q: Determine the principal remaining after 38 monthly payments have been made for a 5-year loan of…

A: The monthly payments of the loan carry the payment of principal and payment of interest on loan and…

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: Suppose you borrowe9 $12,000 at an interest rate of 8%, compounded monthly over 36 months. At the…

A: Computation:

Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…

A: Given, Amount borrowed = $28000 Interest Rate = 12% No. of years = 4

Q: If a loan is made at 9.24% compounded quarterly, what loan today could be paid off by making 45…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: BALR Corp.borrows $600,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan payments are semiannual. Thus, the semiannual interest rate should be considered i.e. 6%/2=3%.…

Q: Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is…

A: Answer: Calculation of the effective annual rate (EAR): Formula of effective annual rate: EAR = (1+…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals? A…

A: a) Working note:

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: A equal principal payment loan of $3000 is amortized by means of 12 quarterly payments, beggining…

A: Loan Amount = $3,000Total Number of Payments = 12Loan Principal Payment = $3,000 ÷ 12 = $250Interest…

Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A loan of 125,000 will be repaid by payments at the end of each month over 30 years. Payments for a…

A: Monthly payments are the loan re-payments paid by the borrower of the loan to the lender. It…

Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Determine the interest rate per year, compounded quarterly, which is needed for a principal amount…

A: Given Present value (PV) = OMR 27000 Future value (FV) = OMR 43995.75 Period = 8 years  Interest…

Q: compute the nominal quarterly interest rate at wich payments of $250 made at the end of each quarter…

A: in this problem we have to calculate future value FACTOR and from that we can get quarterly interest…

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: or total yearly payments of $10000 for 10 years, compare the compound amount accumulated at the end…

A: Given information: Annual payments : $10,000 Time periods : 10 years Nominal Rate of interest : 20%

Q: Money borrowed today is to be paid in 8 equal payments at the end of each quarter. If the interest…

A: Quarterly payment (Q) = P 37291 n = 8 payments r = 1% per annum = 0.25% quarterly

Q: A $10,000 loan is scheduled to be repaid in equal monthly installments at the end of each month for…

A: To Find: Additional Interest paid

Q: John Johnson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 5.20 percent,…

A: In the given question we need to compute the effective annual interest rate (EAR) if the nominal…

Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…

A: In this question payment per quarter has to be find out. Future value , rate of return and number of…

Q: Velma deposits $2,534 at the end of each quarter, increasing the deposit by $147 per quarter. How…

A: The timing of cash flow is taken into account by discounting them. This is partly due to the effect…

Q: Saud borrowed $90,000 now. He will pay off the loan with 10 equal quarterly payments. The first…

A: To find the quarterly payment one can apply the formula in excel called PMT which calculates the…

Q: A financial institution offers a nominal interest rate of 12% while compounding its accounts…

A: Using excel NPER function

Q: A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring…

A: monthly payment formula: monthly payment=p×rm1-1+rm-m×n where, r=rate p=principal m=frequency of…

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. (…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: How many months will it take to pay off a $705 debt, with monthly payments of $25 at the end of each…

A: EMI (EQUATED MONTHLY INSTALLMENT)- It is a fixed payment made by a borrowing party to the lending…

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

A: Loan amount = $20,000 Interest rate = 5% Time period = 10 years

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 in payment = P 500 Annual interest rate = 5% Period = 4 Years

Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…

A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…

Q: BALR Corp.borrows $500,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan refers to the amount raised by an individual with the mode of borrowings from the lender with…

Q: Money borrowed today is to be paid in 9 equal payments at the beginning of each quarter. If the…

A: Compound Interest: Compound interest is calculated using the principal of a loan or deposit–as well…

Q: What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in…

A: The nominal interest rate is the stated interest rate. The nominal interest rate doesn't consider…

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Q: A debt of $ 900 is repaid by making payments of $50 at the end of every 6 months. If interest is 3%…

A: The amount of loan is equal to the present value of installment discounted at the required rate of…