Having been suspended from doing any mission in the Village of Konoha, Naruto decided to borrow money from Sakura to meet his needs. An amount of P40,000 is due in a year, an amount of P10,000 is due in 3 years, P5,000 due in four years, and P5,000 in 5 years. If money is worth 3% compounded quarterly, find the equated time for paying this debt.

Q: A housewife bought a brand new washing machine costing P12,000 if paid in cash. However, she can…

A: Present value of annuity due can be used to calculate the periodic payment.

Q: John was injured in an accident and the insurance company has offered him the choice of $37,000 per…

A: given data the insurance company has offered him $37000 per year for 15 years the present value of…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: no need to be very detailed in the solution as long as its readable and necessary. Mark borrowed an…

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Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Che Kow buys a house for RM450,000 with 20% down payment. He takes a loan from a bank to settle the…

A: Monthly payment The minimum value that is needed to be paid by the person every month.

Q: A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: Jungkook purchased a new car under these terms: 800,000 php downpayment and 17,500 php each month…

A: Cash price is the price that will include the downpayment plus the present value of the loan.

Q: A person wants to make an amount of $ 5,000 to accumulate over a period of 15 years so that he can…

A: Annual, or yearly, billing is a popular choice for many businesses since it delivers a whole year of…

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Q: Hange Zoe borrowed money to upgrade their battle equipment of Survey Corps in the lending company in…

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Q: The buyer of a house paid PHP 10,000 in cash and committed to pay "x" pesos every six months for the…

A: In this we have to calculate the present value of lump sump amount and than find out the value of X.

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A: Cost of equipment = $45,500 Salvage at the end of 5 years = $2000 Annual Savings = Let X 1 Day…

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Q: Jo wants to accumulate $40,000 to use for an around the world trip. She plans to accumulate the…

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Q: A professional photographer who specializes in wedding-related activities paid $53,000 for equipment…

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Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…

A: Principal amortization means an amount of principal borrowing payment included in the instalment.…

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

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Q: After an accident Nomfundo was awarded an amount from the Road Accident Fund as compensation for her…

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Q: Kate deposits P5,000 to her bank account every year when she was in highschool for four years to…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: Lupé made a down payment of $5000 toward the purchase of a new car. To pay the balance of the…

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Q: Gil decided to sell their farm and to deposit the fund in a bank. After computing the interest, he…

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A: The answer has been mentioned below.

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Q: Hugo loaned P200,000 from a local bank to be paid back uniformly in five years. How much will he pay…

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Q: A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest…

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Q: A woman deposits $12,000 at the end of each year for 15 years in an investment account with a…

A: The question is based on the concept for calculation of the future value by use of compounding…

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.