Dina placed Php 18,000 in a 240-day term deposit earning 8.5% per annum. How much will the bank pay Dina on the maturity date?

Q: A loan of Php. 50 000.00 that is due in 10 months at 12% interest is guaranteed by a post-dated…

A: A loan refers to borrowed money taken by a person from a lender in case of a shortage of money. It…

Q: A bank offers a loan that will require you to pay 9% per annum with semi-annual compounding. Which…

A: Given rate,  9% semi annual compounding

Q: You agree to make 24 deposits of Php500 at the beginning of each month into a bank account.  At the…

A: An annuity is a series of cash flows with a fixed amount at equal time intervals for a specific…

Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…

A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…

Q: how much will have tobe deposited to earn 225 pesos of interest

A: Simple Interest: It is the easiest method to compute interest expense/charge on the loan taken.…

Q: Schlitz Inc. has obtained a 90-day bank loan of $10,000 with an annual interest rate of 15%, payable…

A: Given loan is for 90 days. Hence, the maturity period is 90 days. Hence, S Inc has to pay interest…

Q: What is the outstanding balance of the loan after the 2nd year

A: Compound interest is the amount of interest charged on interest. In this method the interest…

Q: On a $10,000 principal investment, a bank offered interest rates of 3.45% on 270- to 364-day GIC's…

A: The investment in GIC earns fixed interest on the investment based on the applicable interest rate…

Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…

A: Effective annual interest rate is the interest rate which an investor expects in a year after taking…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25.…

A: The rate of interest is the percentage that is charged on the loan of amount.

Q: A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective…

A: Effective Annual Rate refers to the real return on a savings account or any interest-paying…

Q: How much is the principal invested in the bank since a certain amount of money deposited in the bank…

A: Given Number of years (T) = 2 Interest rate (R) = 30% Interest for 2 years = 6,000

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A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: The bank is offering to sell 6-month certificates of deposit for $9800. At the end of 6 months, the…

A: Certificate of deposits are issued by the banks at discount and that discount is interest rate on…

Q: borrowed Php200,000 from a local bank having an interest of 8% per annum, compounded monthly. If the…

A: Loans are to be paid by the equated monthly payments which carry the payment of principal and…

Q: Mountain Grains Cooperative wants to invest $42,000 in a​ short-term deposit. The bank offers 1.4​%…

A: Future value can be calculated by using present value multiplied by 1 plus interest rate.

Q: A lending institution charges its client Php1,008,000 on a loan of Php1.6m for 5 years and 3 months.…

A: Given: Interest amount = Php1,008,000 Loan amount = Php1600,000 Time period = 5 years and 3 months

Q: compute the initial value of the money if the borrower needs deposit the accumulated amount of…

A: With the application of time value of money, we can compute the initial deposit which will become $…

Q: Arman will pay back a P450,000 loan at the end of 26 months. This loan has an annual simple discount…

A: The loan is a value that is borrowed from external sources like banks and this amount is repaid…

Q: Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360…

A: Principal (PV)=5000, Interest rate (rate)=5.25%, compounding daily. time period = 8 months, Total…

Q: Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, while Bank…

A: Given data; Bank America interest rate = 5% compounding frequency by Bank America = quarterly Bank…

Q: A bank offers the following interest rates on your deposit: (Draw the Cashflow) 10% per year,…

A: The effective annual rate (EAR) is the actual rate of interest after taking the compounding effect…

Q: If a nine-month term deposit at a bank a simple interest rate of 9% per annum, how much will have to…

A: Simple interest: As the name indicates it is a simple interest computed on the amount of principal.…

Q: A bank bill with a face value of $250,000 was issued today and it matures in 60 days' time. If…

A: Present value is referred to as the current value of the future sum of the funds/cash flows stream…

Q: Assume that a bank has lent a firm a P 200,000 for 60 days at 10% interest. The loan is discounted,…

A: Principal amount (P) = P 200,000 Interest for 60 days (I) = P200,000 x 10% x 60/360 days = P3,333…

Q: . Dina placed Php 18,000 in a 240-day term deposit earning 8.5% per annum. How much will the bank…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: angel co. has P500,000 in receivable that carries a 30-day credit term, 2% factor’s fee, 5% holdback…

A: Factoring is a system or arrangement  in which  the company sells its accounts receivables to a…

Q: t is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds…

A: The value of money would possibly change with time. The money that is received at present will have…

Q: 1. A bank loan of Php1,900 is discounted at 11 % . If the loan is due in 120 days, how much is the…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Suppose that you make 12 equal annual deposits of Php 2,000 each into a bank account paying 8%…

A: Annual deposit (P) = Php 2,000 Annual interest rate (R) = 8% Number of annual deposit (N) = 12

Q: A bank offers a lending rate of 10% p.a. compounded quarterly. What figure would they quote if they…

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

Q: An amount of 5 million is placed on deposit from 17 August to 31 December at 6.7%. What would be the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: A local bank is advertising that it pays depositors 6% compounded monthly, yielding an effective…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: If a 9-month term deposit at a bank a simple interest rate of 9% per annum, how much will have to be…

A: Simple Interest is the interest amount calculated on the principal amount to the savings account.

Q: assume bank accepts a 6-month $20,000 rate sensitive deposit at a cost of 4.0% and invest in a…

A: Computation of the amount that the bank has to pay:Principal=$20000Rate=4.0%Time=6 monthsAmount of…

Q: Pasco Co. borrowed Php20,000 at a rate of 7.25% p.a., simple interest, with interest paid at the end…

A: Interest can be simple or compounded, simple interest is the amount of interest which only calculate…

Q: For a short-term cash requirement of 85,000 TL, a 12-month maturity loan with equal installments…

A: The amortization schedule helps the lender to keep a track of the loan payments that will be…

Q: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…

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

Q: You deposited PHP5,500 in a bank with an interest rate of 6% for l year. What is the uture value of…

A: Deposited amount (PV) = PHP5,500 Interest rate (r) = 6% Period (n) = 1 Year

Q: Reya placed Php 18,000 in a 240 day term deposit earning 8.5% per annum. How much will the bank pay…

A: Principal ,P= Php 18,000 Time,t = 240 days Rate of interest, r= 8.5% Taking 365 days in a year for…

Q: A company that specializes in odor control made deposits of PhP 10,000 at the end of year 2, PhP…

A: Future value = present value * (1+rate)^time

Q: If a nine month term deposit at a bank earn a simple interest rate of 9% per annum, how much should…

A: Term deposit is a way in which the person locks his amount or we can say sum of money for a specific…

Q: The Royal Bank pays an interest rate of 0.6% on redeemable GICs and 0.75% on non-redeemable GICs.…

A: Solution:- The Royal Bank pays interest on the amount of GIC held with it. Now, in order to retain…

Q: What is the effective interest rate of a simple discount note for $32,000, at an ordinary bank…

A: Given: Principal amount =$32000Discount rate =13%Time duration =10 daysNumber of days in a year =360…

Q: A tresury bill with a face value of 100,000 dollars and 120 days until maturity is selling for…

A: Discount yield of T-bill for a year is Discount yield =[(Face value-selling price)]*360/120

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.