If the proceeds of a loan of P12,450 will be paid with P12,840 at the end of 1 year and 9 months. What is the simple interest discount rate? A. 1.75% B. 1.74% C. 1.73%

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: What are the actual total savings for a borrower if the note rate is 6.625%, 30 year, 2/1 buy-down,…

A: Here, Sales Price is $140,000 Down Payment us $20,000 Interest Rate is 6.625% Time Period is 30…

Q: What future amount is due at the end of the loan period for an (a) ordinary and (b) exact interest…

A: Ordinary Interest Rate: The rate that is applied in calculating simple interest and uses 360 days as…

Q: The principal  P is borrowed at a simple interest rate R for a period of time T. Find the loans…

A: Calculation of Future Value and Total Amount Due:The future value is 7,605 and total amount due is…

Q: What is the discount interest rate if P129,750 was obtained after a loan of P150,000 was granted for…

A: Simple interest is a quick and easy way to find out how much money you owe. The daily interest rate…

Q: A $ 200 000 loan is made with 30 years maturity and monthly compounded. The loan is based on a…

A: The loan is an arrangement of the lending facility from the lender to the borrower. A lender…

Q: Find the i (the rate per period) and n (the number of periods) for the following loan at the given…

A:

Q: SIMPLE vs COMPOUND INTEREST Isimp. = P * r *t where P - principal amount (the initial amount you…

A: 2. Calculation showing the total amount of interest paid under simple interest method: Interest=…

Q: An obligation of P25,000 with interest of 5% compounded semi-annually must be paid at the end of…

A: Compound interest is the extra interest to the principal amount. In simple it can be defined as…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: A borrower can borrow $10 million at a fixed-rate loan at 7.5% for six years. After some…

A:

Q: If you borrow $25,000 at an interest rate of 6%, compounded annually, with the repayment schedule as…

A: We need to discount all the future cash flows from year 1-4 and year 5-9 so that the total sum of…

Q: A loan of £8,000 is to be repaid by level monthly instalments of 185 in arrear over a period of 4…

A: given, P=8000 n=4 m=12 A=185

Q: A loan of size L is to be paid off by payments of 2000 each year for 10 years. The principal repaid…

A: The question is based on the concept of loan amortization and sinking fund. The question can be…

Q: What is the simple interest rate on a loan of 2,000.00 that was paid 2,600.00 after 2 years and 6…

A: Interest = Amount - Principal Interest = 2,600 - 2,000 Interest = 600 Time = 2 years 6 months = 2.5…

Q: What is the maturity value of a 40,000 loan after 3 years if the rate of interest is 6% per annum?…

A: The maturity value of loan is calculated as loan amount plus interest amount.

Q: 1. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the…

A: Amount payable = Loan *(1+ interest rate* time period)

Q: A mortgage loan should be fully repaid in 48 monthly installment of Rp5 million. If the loas is…

A: The formula of loan amortization: Loan amortization = Total installment - outstanding balances * (…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: What is the maturity value of a $7,500 loan for 16 months at 4.8% compounded monthly? Also. how much…

A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…

Q: You take out 1 $10,000 loan for 7 years at an annual interest rate of 5% and with fixed annual loan…

A: Borrowed amount is $10,000 Annual interest rate is 5% Payment per year is $1,728.20   To Find:…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Nominal rate (D)= 7.5% Borrowed amount = P10,000

Q: Find the interest that will be deducted in advance from a loan of P25,000.00 due in 2 years if the…

A: Given Information : Amount of loan = ₱25,000 Annual interest rate = 6% Number of years = 2

Q: What compound interest rate j,, is equivalent over 4-year period to a simple interest rate of 2.24 %…

A: Given Information: Time Period = 4 years First year simple Interest rate = 2.24% For balance three…

Q: In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much…

A: N = 4 years Loan = $45,280 Interest Rate = 11% Principal payment in second year = ?

Q: For a repayments schedule that starts at the end of year 5 at $A and proceeds for years 6 through 40…

A: A loan is a type of borrowing that is taken from a financial institution by a borrower and the…

Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.

A: Loan amount (P) = P3000 Interest rate (r) = 4% Period (d) = 72 days

Q: Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: for theory of interest class: A loan of size L is to be paid off by payments of 2000 each year for…

A: Interest is the amount paid by the borrower of the loan to the lender of the loan along with the…

Q: An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the…

A: A bank discount is a discount charged by the Bank on the loan given to the customer. On maturity,…

Q: What is the annual percentage rate on a loan with a stated rate of 2 percent per quarter? A. 2.00…

A: In the given question we require to calculate the annual percentage rate on a loan if the stated…

Q: You are quote for a loan as 14.5% per year, compounded monthly. What is the effective yearly…

A: Compounding interest means calculating interest not only on the principal but also on the interest…

Q: What is the balance of the loan at the end of year 3? $0.00 Round to the nearest cent c. By how much…

A: Loans are paid by the monthly equated payments that carry the payment for loan principal amount and…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: How much interest will be paid on 5-year, $50,000 loan if the rate of interest is 7.5% compounded…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Suppose the future value of a 7.25% simple interest loan is $3,208.91 at the end of 185 days. Find…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: A borrower can borrow $10 million for six years. Assume the current LIBOR rate is 7%. After some…

A: As the question is incomplete, based on options given calculating amount of interest paid under…

Q: If you borrow $20,000 at an interest rate of 8%, compounded annually with the following repayment…

A: In the given sum we are given loan amount and  interest rate. We must find the value of A which is…

Q: Find the simple interest and the full amount/future value for a loan of S3,600 for 3 years at a rate…

A: A loan is an agreement between two parties where a sum is given in return for it being paid back…

Q: What is the effective rate of a 3- month discounted loan borrowing of P4 million if the interest…

A: Effective  rate of interest  = (1+r/n)^n  -1 N = number of periods in a year = 12/3    =4 R = rate…

Q: Find the present value (principal) to pay on a loan if $ 8,923 of future value (amount) is paid at…

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

Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…

A: solution Given Simple interest rate        =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…

Q: Find the interest rates earned on each of the following:a. You borrow $720 and promise to pay back…

A: Given:

Q: A loan of P50k requires quarter payments of P2875 over 10-year period. These payments include…

A: Loan amount (L) = P 50000 Quarterly payment (Q) = P 2875 Duration (n) = 10 years = 40 payments Let r…

Q: How much interest is deducted in advance from a loan of P18,000.00 for one year and 6 months if the…

A: Given Information : Amount of loan = P 18,000 Period of loan = 1 year 6 months = 1.5 years Discount…

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple…

A: Given: Principal amount (P) = $9000 Interest rate (r)=6.5% = 0.065 Time period = 18 months = 1.5…

Q: 1. Let's assume that a loan of $100,000 with an annual interest rate of 6% over 30 years pays…

A: Accumulation rate is the increase in size of asset, position or overall buying activity of…

Q: A loan of £5,000 is to be repaid by level monthly instalments in arrear over a period of five years,…

A: The conceptual formula used:

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.