Cassie paid P68 000 to a money lending company after one and a half years to fulfill er loan that costs P60 000. What is the interest rate compounded quarterly that is narged to the loan?
Q: In one instance, a financial institution loaned you $20,000 for two years at an apr of 4.75% for…
A: Interest refers to the cost of borrowing money from the lender.
Q: The Flemings secured a bank loan of $368,000 to help finance the purchase of a house. The bank…
A: Calculation for the size of each repayment if loan is to be amortized at the completion of the term:…
Q: If I loaned 163,085 today and promised to pay it back after 5 years to the bank with monthly…
A: Loan amount (P) = 163,085 Annual interest rate = 0.11 Monthly interest rate (r) = 0.11/12 =…
Q: A man buys a house for $330,000. He makes a $150,000 down payment and amortizes the rest of the…
A: Given:
Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…
A: The question can be solved as follows:
Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…
A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 =…
Q: Alhambra Corporation borrowed $1 million from Anaheim Bank with the understanding that Alhambra will…
A: here PV = $1 MILLION or $1,000,000 nper = 6 and PMT = 175,000. FV = 0. We have to find the rate…
Q: Carlo paid P 13,500 after two years to fully pay his loan that costs P 10,000. What is the interest…
A: Loan to be repaid on maturity = C* ( 1+i)n Where C is the amount of loan borrowed i is the periodic…
Q: Mariel owes P30,000 in 5 months with interest at 7% and another P14000 is due in 11 months with…
A: Data given: Mariel owes P30,000 in 5 months and P14000 is due in 11 months. New tenure = 9…
Q: Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every month…
A: The PMT function is a type of financial function which helps to determine the total monthly payment…
Q: Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal annual…
A: When the interest is computed on the principal amount as well as on the amount accumulated in the…
Q: A businessman borrowed P220,000 with interest at the rate of 4.2% compounded semi-annually. He…
A: The future value of money is the amount of money that will be worth at some point in the future if…
Q: John took out a loan for 7,800 pesos that charges an annual interest rate of 9.9%, compounded…
A: The amount owed after a year can be calculated as future value of sum
Q: A businessman borrowed P320,000 with interest at the rate of 4.9% compounded semi-annually. He…
A:
Q: A woman borrowed P3, 000, 000 to be paid after 1.5 years with interest at 12% compounded…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: How much of the original principal is still unpaid after he has made the 8th payment?
A: Get the annuity first using P = 600000,i =12%= 0.12 , n = 15 P= A*(1-(1+i)^-n)/i…
Q: A saver places GHc1,000 in a certificate of deposit that matures after 20 years and that each year…
A: Compound interest is the addition of the interest to the principal sum of a loan or deposit. It is…
Q: I owe Php 50,000 which is due without interest at the end of 2 years. What should my creditor be…
A: As per the time value of money concept, individuals prefer to receive a sum of money at the earliest…
Q: 1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal…
A: We need to use RATE function in excel to calculate interest rate. Formula is =RATE(NPER,-PMT,PV)
Q: LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a…
A: Present value factor at 2 year for $1 = Machine cost / Payment to be made = $100,000 / $123,210 =…
Q: James received a 15 year loan of $230,000 to purchase a house. The interest rate on the loan was…
A: Working Note #1 Loan amount ($) 230000 N (years) 15 Period 180 Rate(Compounded annually)…
Q: Matt borrowed $23,000 at 5.5% compounded semi-annually. If the loan is to be repaid in equal…
A: Loan is contract between lender and borrower where lender provide funds to borrower that is repaid…
Q: A man paid a 10% downpayment of P 200,000 for a house and lot and agreed to pay the balance on…
A: Monthly Installment: an installment loan in which payments are paid at predetermined intervals; the…
Q: A man borrowed P 150,000.00 from the bank payable on the 1st day of every month for 2 years. If he…
A: An interest rate is a rate that is the cost of borrowing money.
Q: If you borrow S20 000 as a five-year loan from the bank and the bank requires you to make…
A:
Q: To help finance the purchase of a house and lot, a couple borrows P350,000. The loan is to be repaid…
A: Given Information : Amount borrowed = P350,000 Number of years = 8 Annual interest rate = 15%
Q: ousiness takes out a loan of $500 000 from a bank and agrees to repay th ing a fixed amount of $60…
A: Loans are paid by the annual equal payments that carry the payment of interest and payment for the…
Q: In one instance, a financial institution loaned you $90,000 for two years at an APR of 3.75% for…
A: Computation:
Q: Gloria borrows P100,000 from a lending institution which changes an interest rate of 16% compounded…
A: Formula for finding Annual Payment =[Interest rate*Borrowed Amount]/[{1-((1+Interest rate)^(-Number…
Q: A man borrows Php10,000 from a loan firm. The rate of simple interest is 15%, but the interest is to…
A: Actual interest rate here will be calculated by dividing interest by net amount received. Actual…
Q: A person borrowed a loan and pledged to repay it and its interest using the amortization method, out…
A: The present value of the annuity should be used here since the payment is made at regular intervals…
Q: A person owes $1000 due in two years and $4000 due in 6 years. Using an interest rate of 12%…
A: In the given question we require to calculate the present value of $1000 due in two years and $4000…
Q: To help finance the purchase of a house and lot , a couple borrows P350,000. The loan is to be…
A: The interest rate is the proportion of a loan that is charged as interest to the borrower. It is the…
Q: Mr. Reyes borrows P600 000 at 12% compounded annually, agreeing to pay the loan in 15 equal annual…
A: The information given is Loan amount = 600,000 Interest rate = 12% compounded annually N=15…
Q: A woman borrowed P3,000 to be paid after 1.5 years with interest at 12% compounded seminually and…
A: Borrowed amount = P3,000 Time period = 1.5 years Interest rate = 12% that compounded semiannually…
Q: Gunther has to pay a loan he took out after a term of 5 years. If the principal amount is at $215…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: Mr. Bean borrowed P600,000 from Maligaya Lending Corp. for 6 years at 12%. At the end of 6 years, it…
A: As per time value of money concept, a sum of amount invested today will have more value in the…
Q: Mr. Reyes borrowed from the bank an amount of P326,000 today to be paid after 5 years. This was done…
A: Banks charge the interest on the loan which they provide to the borrower Given in the question…
Q: A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of…
A: formula for remaining balance: remaining balance=princial×1+rmn-pmt×1+rmn-1rm where, r = rate of…
Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6%…
A: Here, Borrowed Amount is P12,000 Interest Paid is P4,650.70 Interest Rate is 6% Compounding Period…
Q: Mr. Sy borrowed money from a bank with an inferest of 6% compounded monthly for 10 years. His…
A: 6. Calculate the interest rate per conversion period by dividing the annual interest rate which is…
Q: An employee obtained a loan of P10,000 at the rate of 6% compounded annually in order to repair a…
A: Loan amount (PV) = P10,000 Interest rate = 6% Monthly interest rate (r) = [1+0.06]1/12 -1…
Q: Marissa converted an RRSP balance of $125,000 into an RRIF that will pay he $1,850 at the end of…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Bench loaned P10000 in a bank to be paid after 3 years with an interest of 10% compounded semi-…
A: First loan (L1) = P 10000 n = 3 years = 6 semiannual periods r = 10% per annum = 5% semiannually…
Q: Jacques has just been notified that the combined principal and interest on an amount he borrowed 19…
A: Present value computes the existing value of future benefits by discounting future worth with a…
Q: A man borrows P5,430 from a loan association. In repaying this debt, he has to pay P425 at the end…
A: Loan Amount 5430 Simple Interest 14.75% Amount for each instalment 425 No of…
Q: An engineer deposits $830 per month into a savings account that pays interest at a rate of 10% per…
A: Future value of annuity is the value of recurring regular interval cashflow compounded at the…
Q: 1. Erika Joy borrowed P7,777.00 to be paid after 2.5 years with interest at 15% compounded…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
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- Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
- Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. $500 D. nothing, since this is a noncurrent note payable