Belle decided to start a new investment account.  She deposits $1,000 into an account that earns 3.5% interest, compounded quarterly for 10 years.  How much more would she have earned, in interest, if she invested the same amount into an account earning 3.8% interest, compounded monthly, for the same number of years?

Q: Samantha made regular, equal deposits into savings accounts at the end of every month for three…

A: Annuity is a no. of finite payments which are equal size and made in equal time periods. Person…

Q: Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have…

A: Simple interest is the method of calculating interest on the amount of investment. A fixed amount is…

Q: Mary Kate and Ashley discover they have $40,000 from their Full House days that they haven't used.…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Rachael invests $8000 for 7 years and 8 months. The account earns 12% semiannually. A) What is n…

A: Future value of present sum depends on whether it is simple interest or compounded…

Q: Hanna invests $8400 for 8 years and 10 months. The account earns 5% semiannually. a) What is n for…

A: Basic Details: 1. Investment = $8400 2. Time = 8 years and 10 Months 3. Interest rate = 5 %…

Q: Shayla deposited $4,000 into an account earning 5% interest per year, compounded every 6 months.…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Ms. Walsh invested $35,000 in two accounts. one yielding 8% interest and the other yielding 9%. if…

A: Interest rate in account 1 (r1) = 8% Interest rate in account 2 (r2) = 9% Period (t) = 1 year Total…

Q: Ann invests $1000 today in an investment that has APR of 9.8% and is compounded monthly. How much…

A: 1) Future Value = Present value * (1+r)^n Where, r =rate of interest per period i.e. 9.8%/12 =…

Q: Jill invested $1,000 each year into an account that earns 10% interest compounded annually to have…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Kim Baker invested $250 at the end of every 3-month period, for 5 years, at 8% interest compounded…

A: If money has been deposited in an account at the beginning of every period for a specified duration…

Q: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

Q: Robert invested the profit of his business in an investment fund that was earning 3.25% compounded…

A: Interest rate = 3.25% Semi annual interest rate = [1+(0.0325/12)]6-1…

Q: Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9…

A: As per the guidelines, in the case of two or more individual questions, the answer for the first one…

Q: Caroline invest $100 on the last day of each month into an account earning 8% interest, compounded…

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

Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…

Q: Morgan opened an RRSP account and deposited $2,800.00 into it. She then deposited $900.00 at the end…

A: Deposit at year-0 = $ 2800 Deposit at year-1 = $ 900 Deposit at year-2 = $ 575 Interest rate = 2.20%…

Q: value of the investment after 5 years b) How much interest was earned

A: An annuity is the fixed amount that is deposited at a fixed interval of time over a predetermined…

Q: What is the interest on interest if interest is compounded

A: Calculate the compound interest amount as follows:- Total amount after 3 years =P x (1+R/100)n…

Q: Steve invests $1,800 in an account that earns 3.7% annual interest, compounded continuously. What is…

A: Present Value = $1,800 Interest rate = 3.7% Time Period = 10 Years

Q: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Given information: Initial deposit amount is $900 Monthly deposit of $80 Interest rate is 3%…

Q: How much will be in Sarah’s account in 10 years if she deposits $5000 in an account that pays 10%…

A: the balance in the account will be the amount deposited along with the interest accrued over the…

Q: Cameron opened an RRSP account and deposited $3,800 into it. He then deposited $800 at the end of…

A: Deposit now = $ 3800 Deposit at the end of year 1 = $ 800 Deposit at the end of year 2 = $ 475…

Q: Jianne invested Php 50,000 in a friend's business with a definite annual interest rate of 4%. How…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she…

A: solution concept under simple interest the interest is calculated on the principal amount only .…

Q: Cristina invests $140.00 a quarter for 9 years into an account earning 9% compounded quarterly.…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Let the amount invested in the fund be $ X. Interest rate = 2.50 % compounded monthly The money is…

Q: A man deposits 43,799 each year into his savings account that pays 2% nominal interest compounded…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Sarah opens an investment account with an initial deposit of $1900. She then sets up monthly…

A: In this question we need to compute how much money will sarah have in account in 5 years i.e. we…

Q: Can you please help me work this problem out in detail?   Carol is depositing $250 into an account…

A: The amount deposited every six months is $250. The total number of deposits in 5 years would be 10.…

Q: > In preparation for her daughter's educational tour 18 months from now, Deborah invested $ 21,000…

A: Present Value, Future Value and/or Excel can be used for finding the values of the above said…

Q: For 12 years, at the beginning of every month, Elsa deposits $200 into a savings account. Once the…

A: The cumulative value of an investment is the entire amount it now possesses, including the money…

Q: Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest…

A: Simple Interest = Investment * Rate * Period

Q: nd invests P20,000 for 40 years in an account earning 9% interest per year. How much will she…

A: Future value = Present value (1 + rate)^periods Future value = 20,000 (1 + 0.09)^40 Future value =…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…

A: Given, Amount invested is $49000 Interest earned on both the investments is $2320

Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…

A: Investments are the ways through which money is saved in various financial instruments and accounts…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a) Find…

A: PV= $100 r= 4% compounded monthly n= 20 years FV=?   FV= PV(1+r)n FV= $100(1+0.04/12)20*12 FV=…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a)find the…

A: Annuity refers to an investment which involves a series of regular payments for a certain period of…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money…

A: The amount required to invest today can be calculated with the help of future value function

Q: Tanya deposits ₱1,500 at the end of each quarter in her savings account. If the account earns 6.75%…

A: The amount deposited in the savings account grows on the basis of interest rate and the duration of…

Q: my cousin hershey is a newly public school teacher who plans for education of her future children.…

A: Annuities assume that money is put into the account on a regular schedule and money is left in the…

Q: Last year, Charlie had $30,000 to invest. He invested some of it in an account that paid 10% simple…

A: Simple interest is one of the methods of calculating interest in which interest is calculated only…

Q: Ryan invested 56000 in Koy Rural Bank and Soy Rural Bank. Koy Rural Bank pays 8% interest per year,…

A: formula for interest : interest =principal ×rate×time100

Q: Tyler invested the profit of her business in an investment fund that was earning 3.75% compounded…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

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.