hat you are finished school, you also have to start paying back your student loans. You borrowed a total of Rs. 12,500. You plan to pay back the loan over 10 years at an interest rate of 9.4% interest, compounded monthly. How much will your monthly payments be? Use exce

Q: College students are now graduating with loan debts averaging $24,000. a. If students repay their…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: Supposed you want to buy a used car but your savings is not enough. To do this, you borrow P60,000…

A: Loan amortization is the process of scheduling out a fixed-interest rate loan into scheduled…

Q: You have an outstanding student loan with required payments of $600 per month for the next four…

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

Q: If you deposited $5000 in a bank that offers 12% annual interest rate, if the bank compounds the…

A: Deposit=5000Annual interest rate=12%Number of years=5years

Q: You have taken out a loan to help with college expenses. The interest rate is 0.4% per month. The…

A: Information given in question ÷ Interest rate is 0.4% per month Monthly interest payment = 80

Q: 1.) To pay for your education, you’ve taken out RM25,000 in student loans. If you make monthly…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Stafford loans are the most popular formof student loan in the United States. The current interest…

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

Q: We want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: Amount of loan=$40000Rate of interest=8%

Q: You plan to start grad school in 5 years (at the end of year 5) and will graduate 3 years after you…

A: There are two types of basic annuities, i.e., ordinary annuity and annuity due. An ordinary annuity…

Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…

A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

Q: to cost $40,000 and increased by 5% every yea

A:

Q: Assume you graduate from college with ​$32,000 in student loans. If your interest rate is fixed at…

A: given, P = $32000 r=4.9% m =12 (monthly compounding) n = 10 year

Q: You are interested in saving money for your first house. Your plan is to make regular deposits into…

A: Future Value = Present Value(1+r)n Future value is the present value compounded at interest rate

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Introduction The present value of the annuity is the current value of the future payments that are…

Q: University tuition and fees can be paid by using one of two plans. Early-bird: Pay total amount due…

A: Equivalent Amount refers to the amount which is proportionally equal to its own value at any…

Q: You have a long-term goal of paying off your school loans in five years. You will graduate with a…

A:

Q: After completing your Principles of Finance course, you plan to save $6,800 per year for the next 11…

A: Saving per Year = 6800 Saving Total year =11 After Saving Number of years keep in Account = 6…

Q: A student needs to borrow $7,000 to pay for college. She can get a loan at an APR of 10% to paid off…

A: We need to calculate total payment by using the loan amortization formula. Fist we need to calculate…

Q: Suppose that you earned a bachelor's degree and now you're teaching high school. The school district…

A: a) The formula to calculate accumulated value of an annuity is given below: Here, i is interest…

Q: To pay for your education, you've taken out $18,000 in student loans. If you make monthly payments…

A: Loan Amount = $18,000 Time Period = 10 Years Interest Rate = 3% compounded monthly

Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…

A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5%  or  0.05 Number of years…

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Here, Lottery Amount is $10,000

Q: An entrepreneurial student plans to borrow money now as much as 20. million, (a) how much is his…

A: Req-(a)   Amount Borrowed 20000000.00 Present value of an annuity of $1 at 12% for 10 periods…

Q: how much will you have 4 years from today?

A: In the given case interest is 5.7%. But in the question it is not mentioned that whether it's simple…

Q: You want to buy a new sports car 3 years from now and you want to save $4,200 per year, beginning…

A: Using excel FV function

Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…

A: Calculate the future value at the end of the year 8 as follows: Future value = Present…

Q: You have decided to open a savings account and put $11000 in your local bank at an interest rate of…

A: Formula used:

Q: inished school, you also have to start paying back your student loans. You borrowed a total of $…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: ou plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If…

A: Using excel PV function

Q: Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate,…

A: Present value of Annuity  is the current value of payments made over a specified period of time at a…

Q: You are interested in saving money for your first house. Your plan is to make regular deposits into…

A: The future value means the rising value of today's sum at a specified future date given at a…

Q: Starting next year, you will need $5,000 annually for 4years to complete your education. (One year…

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

Q: College students are now graduating with loan debts averaging $24,000. Solve, a. If students repay…

A: Given information: Loan amount is $24,000 Number of years is 10 Effective interest rate is 8.30%

Q: Total expenses for a year at college will be $9,000. You plan to pay $2,600 from your savings and…

A: Total expense is $9,000 Amount paid is $2600 Simple interest rate is 5%   To Find: Monthly Payment

Q: You have decided to open a savings account and put $9000 in your local bank at an interest rate of…

A: Given: Present value = $9,000 Interest rate = 0.6% Years = 8

Q: You get a student loan of $20,000 with an annual interest rate of 6% where you make a payment once a…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: You have an outstanding student loan with required payments of $500 per month for the next four…

A: Interest is measured as the percent of the amount of a loan/deposit, charged annually to the…

Q: To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. This…

Q: You intend to purchase a new car upon graduation in two years. It will have a cost of RM29,371,…

A: Amount in the account where funds are compounded monthly can be calculated as: = Amount Deposited*…

Q: You want to be able to withdraw $45,000 each year for 25 years. Your account earns 10% interest. a)…

A: Annual withdraw each year(P) = $45,000 Interest Rate(r) =10% Years(n) = 25

Q: One of life’s great lessons is to start early and save all the money you can! If you save $2 today…

A: The accumulated value after 35 years will be the future value of the annuity.

Q: A high school student would like to save P50,000 for his graduation. How much should he deposit in a…

A: The amount required in the future is the future value of periodic deposits. This is the compounded…

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.