Helen contributed $500 at the end of every month for the past 5 years into an RRSP account, earning 3.8% p.a. compounded quarterly. If she leaves the accumulated contributions for another 4 years in the RRSP at the same rate of interest How much will Helen have in total in her RRSP account? How much did she contribute? How much will be the interest?

Q: Carol Jones, a single person, has an annual income of $32,200. The principal and interest payment on…

A: SolutionGiven thatAnnual income of carlo jones=$32,000Loan amount =$25000 30 year at 8%Annual…

Q: Connie made deposits of $2,000 at the beginning of each year for four years. The rate she earned is…

A: Given:

Q: Frank is making quarterly contributions of $240 to his savings account which pays interest 7.5%,…

A: The time value of money is used to calculate the present values and future values of any stream of…

Q: Ms. Jones deposited $400 at the end of each month for 20 years into a savings account earning 6%…

A: Solution: The total amount in the saving account after twentieth year is the sum of future value of…

Q: Laura deposited $1,100 at the end of every month into an RRSP for 6 years. The interest rate earned…

A: Future Value of Annuity formula will be used to calculate the value of monthly instalments at the…

Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Sally deposited $250 a month in her savings account for 36 months. For the next 6 years she made no…

A: A savings account is a type of depository account offered by the bank for the purpose of customer…

Q: Maria saves ​$32 at the end of each week and deposits the money in an account paying 12%…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Jason Bradley purchased a $77,000 home at 8.5% for 30 years with a down payment of $15,000. His…

A: Escrow Account contains the amount deposited by the borrower or buyer of the asset to show the…

Q: Amishi deposited $600, at the end of each six months for 19 years in a savings account. If the…

A: The future value (FV) represents the value of a current asset at some point in the future based on…

Q: Amishi deposited $800, at the end of each six months for 19 years in a savings account. If the…

A: The future value of an annuity is the value of a series of equal payments each period calculated at…

Q: For 22 years, Janet saved $250 at the beginning of every month in a fund that earned 4.25%…

A: The future value of the annuity due is the future worth of a cash flow series received or paid at…

Q: Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the…

A: Present value is the current worth of the future expected cash flows that an investor obtain from…

Q: Shayla deposited $4,000 into an account earning 5% interest per year, compounded every 6 months.…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…

A: The proceeds would be the difference between Present value at new terms and old terms. and we  will…

Q: Thomas's retirement fund has an accumulated amount of $55,000. If it has been earning interest at…

A: Accumulated Value in retirement Account "FV" is $55,000 Interest rate is 2.44% Compounded monthly…

Q: For 14 years, Janet saved $1,050 at the beginning of every month in a fund that earned 4.25%…

A: When the periodic payments are made at the beginning of each period, such payments are known as the…

Q: Carol saved P12,000 at the end of every six months in an educational plan earns 7% per year…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Mary Joy Dela PAz purchased a house worth 188,686 with a down payment of 36,866 and monthly payments…

A: Given: Particulars Amount Cost of house 188686 Down payment 36866 Years 15 Interest rate…

Q: Since the birth of his granddaughter, 18 years ago, Luis has deposited $250 at the beginning of…

A:

Q: Connie deposits $2,000 at the end of each year into her Individual Retirement Account (IRA). It…

A: Annual deposit (P) = $ 2000 Interest rate (r) = 8% Number of annual deposits (n) = 20

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: Autumn is making quarterly contributions of of $450 to her savings account which pays interest at…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: The amount of money can be calculated as future value of the principal amount.

Q: Isabelle makes deposits of $365 monthly (at the end of each month) into an account that pays 1.5%…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: What is the interest on interest if interest is compounded

A: Calculate the compound interest amount as follows:- Total amount after 3 years =P x (1+R/100)n…

Q: Yolanda deposited $1,600 at the end of each six months for 2 years in a savings account. If the…

A: Future value (FV) refers to the sum value of current assets of the company which is evaluated at a…

Q: Mrs. Kimberly deposited P 300, 000 in an account earning 8% compounded every 6 months. On the 2th…

A: Compound interest: Compound interest denotes an interest computed on the total initial deposits and…

Q: At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8%…

A: Using FV function of excel

Q: On Juan’s 26th birthday, he deposited $7,500 in a retirement account. Each year thereafter he…

A: formula for future value of annuity growth: FVAG=Pr-g×1+rn-1+gnwhere,p=first paymentr=rate of…

Q: Cheska is saving for her dream cellphone. She deposits 2,000 pesos at the end of each month that…

A: Future Value refers to value of any current amount or flow of recurring payments at some future date…

Q: Yolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the…

A: The future value of an investment is the amount accumulated in the account after a period of time.…

Q: Yolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the…

A: The value of money differs with the time passage and the value of it at present is worth more than…

Q: Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded…

A: Present value of annuity payments of $3500 for 10 years at 4% is calculated as below:

Q: For 30 years, lilly contributed $180 every month to savings accountthat earns 1.6%…

A: Balance at the end of 45 years will be future value of monthly savings

Q: Alexandra had a balance of $2,000 in her RRSP. In addition to this, she invested $300 at the end of…

A: Given,

Q: Frank invests $ 2500 dollars into an account earning interest compounded quarterly. After 13 years…

A: Future Value = Present Value * (1+r)^n Where, r =rate per period n = no. of compounding period i.e.…

Q: Minu deposits $950 at the end of each quarter for 6 years in an account that earns 1.8% per year…

A: As the number of compounding period increase than the effective interest rate increases and more…

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: Mrs. Santos deposits P5,500 at the end of every six months in a savings account for her daughter's…

A: Deposit = 5500 every 6 months End of month deposits Interest rate = 4% semi annual period N = 21…

Q: Shelly deposits the $2000 she got as a birthday gift from her grandmother into an account earning…

A: The company would be considering the value for future through the compounding of interest rates over…

Q: Phoebe saved a total of $2 550 000 for her retirement. She invested the money in a mutual fund that…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Helena deposited P3,000 every beginning of 6 months for 10 years at Metro Bank at 9% compounded semi…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Heidi deposits $8,000 in a savings account that earns 4.5% interest, compounded quarterly. How much…

A: This question is from time value of money. It is the concept that money you have now is worth more…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: Jack made monthly contributions of $200 to his son's RESP for a total of 12 years. The contributions…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: Johnny deposits ₱45,000 in the Trust Savings Bank which pays 6% compounded monthly. How much will he…

A: Amount of money at the end of stipulated period can be calculated using the given formula: =…

Q: Jordan purchased an annuity that had an interest rate of 4.00% compounded semi-annually. It provided…

A: In this we need to calculate effective rate and than find out present value factor and from that we…

Q: Yolanda deposited $1,200 at the end of each six months for 2 years in a savings account. If the…

A: The question is based on the concept of Annuity

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.