Can we calculate the total annual interest payment for a credit card by using the future value formula? how?

Q: For the average saver, the real rate of interest on his or her savings is %. (Round your response to…

A: As per company policy it is only possible to solve one question at a time. so solving the first one.…

Q: If you know the present value of an ordinary annuity, how can you find the PV of thecorresponding…

A: The question is based on the concept of annuity payment, an annuity is a series of equal payments…

Q: Explain the meaning of a 20% annual percentage rate (APR) quotedby the credit c.ird company? And how…

A: Answer: Annual percentage rate (APR) applies to the interest rate charged annually to borrowers and…

Q: (d) What are the amount (in $) of the cash discount and the net amount due if the discount is taken?…

A: As per the invoice, the terms of sale includes 3/15, n/30 ROG. It means that 3% cash discount is…

Q: If the payments are monthly how would you set up the present value?

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: deposited in a bank that pays 6% interest, how large must your annual deposit be?

A: Information Provided: Present value = $3000 Future value = $15,000 Term = 10 years Interest rate =…

Q: a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much total…

A: Loan Payments: These are payments comprising interest & principal amounts. Such payments are…

Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…

A: Finance charge It is the charge related to money borrowed over a period of time. It includes the…

Q: find the monthly payment on the given loan. $

A: The total loan payment amount consists of interest and principal amount of loan. Loan= (Loan…

Q: he going rate on student loans is quoted as 8% APR. The terms of the loans call for monthly…

A: Effective annual interest rate  = (1 + (nominal rate / number of compounding periods)) ^ (number of…

Q: monthly

A: I would borrow a loan that is amortized quarterly.   The reason for this is based on the principles…

Q: ? Why? What if the interest rate is 4% (.04)? Explain. (Hint: you can use the formula for a…

A: Option 1: Present value = $850,000 Option 2: Present value = Annuity * [1 - 1 / (1 + rate)^periods]…

Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…

A: Calculation of Finance Charge:The finance charge is $2.05.Excel Spreadsheet:

Q: what would happen if interest rate is doubled in ordinary annuity?

A: What is an ordinary annuity? An ordinary annuity is a progression of equivalent installments made…

Q: Find the future value of each annuity due. Then determine how much of this value is from…

A: When an equal amount of payment is made in an equal time interval for a fixed number of times, it is…

Q: Which of the following statement is most correct? When solving a problem involving an annuity dueyou…

A: answer: When using a financial calculator cash outflows generally have to be entered as negative…

Q: An annuity is a method for calculating the future value of a single payment or a series of payments.…

A: The annuity formula is used to find the present or future value of a series of payment. The present…

Q: Monthly interest rate?

A: Monthly interest rate is the interest charged on the unpaid balance of credit card.

Q: In order to earn 14% simple interest on a 90 day short term loan – what discount rate should be…

A: Formula to be Used:- Simple Interest = Principle ×Rate × timeperiod100 Amount = Principle +SI Future…

Q: How much (in dollars) was borrowed at each simple interest rate,

A: A simple interest is the interest that is charged only on the principal amount. Unlike compound…

Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?

A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…

Q: a. How many payments are required to settle the loan? payments Round up to the next payment b. What…

A: Loan: It represents a sum of the amount borrowed by the borrower from the lender. The borrower pays…

Q: If you were given a choice of investing in an account that paid quarterly interest and one that paid…

A: Effective annual rate is the actual rate an investment generates after taking all the compounding…

Q: Using the daily balance method of calculating interest, how much interest will you owe on a $500…

A: Given,  Credit card balance = $500 interest  = 20% = 20/100 = 0.2 time = 3 weeks  = 21/365

Q: Calculate the net carrying value of the notes receivable on the books of ZER Finance, at the end of…

A: Notes receivable is defined as claims supported by formal promises to pay, usually in the form of a…

Q: how and why interest rates will change over the next three months. Why forecasts of future interest…

A: Interest rate levels influence the supply and demand for loans. The interest rate for each sort of…

Q: (a) How many payments will be paid? (b) What is the size of the final annuity payment?

A: Given in the question: Annuity Cash Value  $12,000 Payment at the beginning of every six…

Q: Which of the following changes would increase the present value of a future payment? (check all that…

A: Present value is calculated based on future cash flows and the market interest rate. It is used…

Q: Use a calculator to evaluate an ordinary annuity formula nt A = m for m, r, and t (respectively).…

A: Given: Monthly payment (m) is $100 Annual rate (r) is 8% For 11 years

Q: $600 per year for 10 years at 14%. $   $300 per year for 5 years at 7%. $   $600 per year for 5…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: In terms of an effective annual interest rate, how can the interest payment be rewritten?

A: An APR (Annual Percentage Rate) is the nominal rate or the stated rate of interest in any financial…

Q: How would I calculate the nominal interest rate that is used in the effective annual rate equation…

A: Total number of periods = 12 Loan payment is 15000 Monthly payment is 1387.5 To Find: Nominal…

Q: What are the annual payments you have made?

A: Annual payments mean the amount of payments that are to be received or paid as per the terms It is…

Q: For a given present value amount and inter in a higher future value. The TVM apps in our financial…

A: Present value and future value depends on interest rate and period .

Q: Illustrate the process of obtaining the future worth of the quarterly payment series?

A: The process is described as follows: Determine the quarterly payments Determine the quarterly…

Q: Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using…

A: Annual percentage rate is the  interest rate charged annually on the loan amount by the lender and…

Q: Future Value of an Annuity Find the future value of the following annuities. The first payment in…

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

Q: Suppose a credit card has an APR of 30.07% and changes its compounding period from monthly to daily.…

A: Effective interest rate is interest after considering the effect of compounding.

Q: Using an annuity, you may calculate the present value of a single payment or a series of payments…

A: Annuities are combination of flow of payments that are widely used in insurance, loans and in…

Q: will your monthly payments be?

A: An annuity is the payment or receipt of a fixed amount at a fixed interval of time for a fixed…

Q: How do interest expense and the carrying value of the note change over time for an installment note…

A: Notes payable are issued on amount borrowed which needs to be paid off in equal installments…

Q: What is the true rate of the cost of credit on a YEARLY basis? interest rate (your response)…

A: Cost of credit is the additional amount over the amount borrowed. It should be repaid by the…

Q: What happens if we calculate the NPW of the loan transaction at its rate ofreturn (10% )?

A: Net present worth is the worth of an investment or a loan in today’s terms. It helps to make…

Q: If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the…

A: In this question we need to calculate the effective rate of interest.