Dive has a savings of P300000 in her savings account. She invested 20% of it in a milktea business and is earning a monthly income of 1.5%. How much will her earnings be in three more years. (Hint: annual rate = monthly rate multiply by 12)

Q: Marie, an employee at McCormick, has determined that she will need $5500 per month in retirement…

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

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used   In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: A 20-year-old student wants to save RM 4 a day for her retirement.  Every day she places RM 4 in a…

A: An annuity is a series of cash flows such as income or payment over a specific duration. Each cash…

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: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…

A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%

Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…

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

Q: EBEYAYEE" Ltd. has a goal to have GH $50,000 saved by the time she turns sixty- five, which is forty…

A: Present value will be calculated after discounting the future value at present. Present value will…

Q: Nick saves $175 per month, deposited directly into his credit union account on payday, the last day…

A: In order to calculate the amount at the end of a specific period of time, the future value of the…

Q: Kym plans to deposit $100 in an account at the end of each month for the next five years so that she…

A: The monthly payment is $100 for the next five years at 6% compounded monthly. Future value of an…

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: Jane just turns 30 years old and wants to start a savings plan, where she contributes $X every month…

A: Given:

Q: How much should Ryan have in a savings account that is earning 2.50% compounded monthly, if he plans…

A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…

Q: Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00…

A: We need to use excel FV function to calculate future value of payment and NPER function for…

Q: Cooper wants to save for college. Assuming he puts $5,000 into an account at the end of each year…

A: Money invested anywhere changes in value with the change in time. This is simply understood as the…

Q: Belle decided to start a new investment account.  She deposits $1,000 into an account that earns…

A: Using excel FV function

Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

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: Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Buhle wants to save R330 284,00 within the next four years. She makes equal monthly deposits at the…

A: given, future value = R330 284,00 r=12.5% m=12 (monthly compounding) n = 4 years

Q: Sarah wants to have $20,000 in nine years. If she puts the money in an account which pays 4%…

A: For solving we have to calculate present value of future value considering compounding monthly…

Q: An investor needs to collect $2,000 in 18 months. If she can earn 6% at the bank, compounded…

A: Present Value = Future Value / (1+r)^n Where, r = rate per period i.e. 6%/4 =1.50% n = no. of period…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: Being cautious with money, Cyril has contributed $1,700 at the start of every month into an RRSP,…

A: value of investment in 10 years from now can be calculated using following function in excel. FV…

Q: Jessie has been contributing $250 at the end of each 6 - month period for the past 18 months to a…

A: Semi annual Contribution is $250 Interest rate Compounded semi annually is 6% Time period is one…

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Lloyd would like to save $4,300 at the end of every year for the next 3.5 years in a savings account…

A: Interest earned:  If the cash basis of accounting is being used, then the amount of interest earned…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $5,000 each year…

A: Future value of single sum/lump sum investment and annuity payments can be calculated by using this…

Q: Natalie’s RRSP is currently worth $250,000. She plans to contribute for another five years, and then…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Sam's family has decided that they will start depositing $100 at the end of every month into a…

A: Monthly Deposit = 100 End of month deposits Time Period =  3 years or 36 months Interest Rate = 4.6%…

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: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…

A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…

Q: Juanita has $100 deducted from her paycheck at the end of each month and put into a savings account…

A: Monthly Payment (pmt) = $100Interest Rate (rate) = 11%Type of Interest Compounded = MonthlyTime…

Q: Sonia sets aside £125 at the start of each month in a savings scheme paying 14% p.a. compounded…

A: Compound Interest =A=P(1+rn)nt A = final amount P = initial principal balance r = interest rate n =…

Q: Jun has decided to save money roughly P25 per week. Suppose he makes weekly deposits of this money…

A: Compounding is also termed as an interest on interest which means that a company calculates interest…

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: Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual…

A: Monthly payment (P) = $ 250 Annual interest rate = 8% Monthly interest rate (R) = 8%/12 = 0.6667%…

Q: Keira wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded MONTHLY.…

A: Information provided: Term = 9 years Interest rate = 7.2% compounded monthly Principal = $4300…

Q: One month from​ now, Kelly will make her first monthly contribution of ​$250250 to a​ Tax-Free…

A: Given information in question monthly contribution is = $250 Expected return = 8% (per annum) Future…

Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…

A: According to the time value of money rule, a dollar sum may have different purchase capacities in…

Q: Patricia French received $500,000 from aninsurance company after her husband’s death. Patricia wants…

A: Monthly payment: It can be defined as the payment made by the borrower on a monthly basis.

Q: Mrs. Reyes decided to save money for her grandchild. She deposit Php 300 each month into an account…

A: Annuity: It refers to the present and future value of recurring payments at a particular point of…

Q: Mr & Mrs. John have decided to start a monthly savings program in order to provide for their son's…

A: Accumulated amount (F) = RM 50,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings…

A: GIVEN, FV = $56,397 M=26 PER YEAR N=9 R=0.6%

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: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Given information : Deposits 2500 Interest rate 5.50% Time period (years) 14 The given…

Q: At the start of every year Jane puts $100 into an investment that gets 5% interest at the end of the…

A: According to the requirement, question (b) is solved.

Q: Assuming that a $45,000 shop loan is financed at 12% over 4 years, what is the monthly shop payment?…

A: 2.  Loan amount = $45000      Interest -12%      Period = 4 years Amount (A) = P* [i *…

Q: Rodney would like to save $57,000 over the next 15 years. How much must he deposit at the beginning…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: Janet decided to pay a lump sum payment of $51000 so she will be able to make 6 years of quarterly…

A: Payment is the transfer, in appropriate amounts, of money, goods or services in return for goods and…

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.