3. Ahmad bought a set of sofa and paid RM200 as a down payment. The balance was to be paid by monthly payments of RM150 for two years. The interest rate was charged 10% per annum based on the original balance. No use excel. Find: a) the amount of the loan. (RM3000) b) the cash price. (RM3200) c) the amount he has to pay immediately after the 20th payment, if he decides to settle all the outstanding debts. Use the Rule of 78. (RM580)

Q: A. A newly married couple decided to buy a brand-new car. The net amount of loan is Php 500, 000.…

A: Given: Loan amount = Php 500,000 Years = 3 Interest rate = 12%

Q: Mr Jeffrey wants to renovate his house. He takes a personal loan of RM 45000 from a bank with an…

A: We will first calculate the monthly payment by applying the required formula and thereafter we will…

Q: To buy a car, Mr. Lopez pays P320,000 down payment and promises to pay P23,450 at the end of each…

A: "Hi, Thanks for the question, Since you have posted a question with multiple sub-parts, we will…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: no need to be very detailed in the solution as long as its readable and necessary. Mark borrowed an…

A: The question is based on the concept of future value calculation. The future value of a cash flow is…

Q: 1. Gabriel bought a new car worth PhP 2M. He made a downpayment worth "X" pesos. After this, he must…

A: B. PhP 413,280 Explanation: The monthly payment will start 3 years from now, which means that if…

Q: vails the loan offered by his company with a minimal interest of 1.5% every 6 months. He borrows…

A: Loan is an agreement between two people where one lends a sum of money and the other borrows. The…

Q: A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum…

A: because you have posted multiple questions, we will answer the first question only, for the remaning…

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

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

Q: Che Kow buys a house for RM450,000 with 20% down payment. He takes a loan from a bank to settle the…

A: Monthly payment The minimum value that is needed to be paid by the person every month.

Q: You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order…

A: Here, Note: As payment period is not given in the question, we are assuming it as yearly payments…

Q: 1. If money is worth 5% compounded quarterly, how much must Julea save every end of three months to…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: The buyer of a house paid PHP 10,000 in cash and committed to pay "x" pesos every six months for the…

A: In this we have to calculate the present value of lump sump amount and than find out the value of X.

Q: A man bought a car for P 650,000 on an installment basis. If he paid a down payment of P 120,000…

A: Car price = P650,000 Down payment = P120,000 Loan amount (PV) = 650,000-120,000 = P530,000 Period =…

Q: A man bought a lot worth P1,000,000 if paid in cash. On the installment basis, he paid a down…

A: In the given question, a series of payments are being made such that if discounted at 20% their…

Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…

A:

Q: You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle…

A: A loan can be defined as the amount borrowed by a person from another party. A loan can be taken…

Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…

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

Q: a) Peter wishes to purchase a motor vehicle from a dealer in Johannesburg for R150 000. His bank,…

A: We will use excel function 'PMT' to find the monthly payment for the loan. as shown in the above…

Q: M purchased a small lot in a subdivision, paying P200, 000 down and promising to pay P15, 000 every…

A: note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Ali buys an apartment for RM150,000. He makes a 10% down payment and finances the balance through…

A: Loan amount (L) = Price - Down payment = 90% of RM 150000 = RM 135000 Monthly payment (M) = RM…

Q: Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down…

A: Given:

Q: Faysal wants to expand his business and needs an amount of OMR 3,000. He approached Sohar Bank for…

A: Faysal borrow OMR3000 from a Bank @7% Interest rate Interest Compounding half yearly.

Q: 3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the…

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

Q: Mr. Rafiq owes Mr. Ahmed Rs. 7000 to be due in 5 years and Rs. 15,000 to be due in 7 ½ years. How…

A: Total amount Mr. Rafiq pay at the end of 6 years =Worth of $7,000 in year 6 + Worth of $15000 in…

Q: Nadhirah needs to pay RM168.28 every month for a loan of RM7,000 from XYZ Bank at 7.2% compounded…

A: Given, The monthly payment is RM 168.28 Loan amount is RM 7000 Rate is 7.2% compounded monthly

Q: You purchased a second-hand car worth ₱ 420,000 if paid in cash. You were able to negotiate with a…

A: given, price of car = P420,000 downpayment = 20% n = 4 years r=1.5% per month m=12

Q: A young couple buying their first home borrow $90,000 for 30 years at 7.6%, compounded monthly, and…

A: Solution: As per given - A young couple buying their first home borrow $90,000 for 30 years at 7.6%,…

Q: Kimmy took a loan of RM30,000 from a bank. The loan was settled in 72 monthly payments. The bank…

A: An annuity is a series of equivalent periodic cash flows for a specific time duration. The term…

Q: Please use formula in solving.   You are interested in buying a house worth P1,200,000. You paid…

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

Q: (c) Alata Kwaku borrowed ¢2,130 from his uncle and promised to pay him ¢2,720 after 2 years. With…

A: c) Given, Future value of borrowed amount = ¢2,720 Present value borrowed amount = ¢2130 number of…

Q: A man is paying 100,000 at the beginning of each month at a rate of 12% compounded monthly. If the…

A: Present Value of Annuity due refers to the value today of the series of the predetermined amount of…

Q: The purchase price of a car is Php 40,141, Mr. Smith makes a down payment of Php 5,802 and borrows…

A: Answer: Calculation of the value of the required monthly payment to pay off the loan: Formula, we…

Q: Mr. Henry is purchasing an apartment that cost RM 475,000. The bank is offering 90% loan on the…

A:

Q: 6. Mahmoud has to pay three equal payments of $50,000 for a house he is buying, The payments are at…

A: In this problem we have calculate present value of all payments and remaining payments.

Q: A man bought a Ford vintage car for P210,000 on installment basis at the rate of 12% per annum on…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: Citari took a personal loan of RM10,000 and paid equal monthly payments for five years at an…

A: A loan amount represents a sum of money borrowed by one person from another. In a loan agreement,…

Q: Johan wants to buy a car on hire purchase for N$49000 at the rate of 12% p.a. repayable using…

A: Payment of loan installments are based on the concept of compounding and time value of money. Here…

Q: Mang Boy decided to borrow 8,200 pesos at an annual simple interest rate of 3%, in order to buy a…

A: Here in this question, we are required to calculate the interest expense. In simple interest…

Q: Engr. Dimaamin bought a concrete mixer costing P2,000,000 with a down payment of P600,000. He paid…

A: Here it is pertinent to note that the present value of all the payments made in order to purchase…

Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…

A: a) Interest for the first semi annual payment       = Principal * Rate * Time      = 135000 * 6%…

Q: month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years?…

A: Note: It is a case where the number of questions asked is more than one and the question 5 is…

Q: An employee is earning P12,000 a month and he can only afford to purchase a car which will require a…

A: Down payment (D) = P 10000 Monthly payment (M) = 30% of P 12000 = P 3600 r = 18% per annum = 1.5%…

Q: Farouk bought an electric appliance through an instalment plan which he paid RM200 down payment. He…

A: Down payment (DP) = RM 200 Monthly payment (P) = RM 120 Annual interest rate = 5% Monthly interest…

Q: Jamal bought a car and is making month-end payments of $510.35 for the next 4 years to pay it off.…

A: given, month end payment, Mode = END N= 4 X12 = 48 years IY = 2.99% CY= 2 (since interest is…

Q: You have borrowed SEK 40,000 from your friend on the condition that you repay the loan with the same…

A: As the payment in the provided case is to be made at the end of each year, thus, it is a case of…

Q: An employee is earning P 18,511 a month and he can only afford to purchase a car which will require…

A: salary =18511 monthly payment =0.3×18511=5553.3 monthly payment =5553.3 Period =4 years =48 months…

Q: 8. An employee is earning P12,000 a month and he can afford to purchase a car which will require…

A: Given that: Employee's Income=$12000 Maximum EMI that the Employee can afford is 30% of the income=…

Q: A man bought a lot worth P1,000,000 if paid in cash. On the installment basis, he paid a down…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

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.