If you borrow $10,000 over three years at 10% annual interest, what is the interestpayment in the 2nd year? You are making three equal annual payments where theannual payment size is $4,021.15.(a) $1,000 (b) $698(c) $366 (d) $3,323

Q: Anna borrows 131000 from a bank for a term of 18 years. The loan is to be repaid by level annual…

A: Loan Amount = 131,000 Interest Rate = 4% Time Period = 18 Years

Q: A $17,000 loan is to be amortized for 10 years with quarterly payments of $621.45. If the interest…

A: Unpaid Balance after sixth payment is equal to present value of annuity of $621.45 remaining period…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated as the present value of quarterly payments, The present value…

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A: We need to use future value of ordinary annuity formula to calculate monthly payment PMT =FVn(1+r)n…

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Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Hence, payment made for year 1 is $3,000, year 2 is $2,400, year 3 is $1,920, year 4 is $1,536 and…

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A: Debt amount (PV) = P310,000 Period = 3 years Number of quarterly payments (n) = 3*4 = 12 Interest…

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Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

Q: What is the principal remaining after 20 monthly payments have been made on a $20,000 five-year…

A: A loan amortization table is a schedule of payment of loan which includes the bifurcation of…

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A: Given: Loan amount = $57,000 Interest rate =8% Years = 3

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A: Monthly payments are the loan re-payments paid by the borrower of the loan to the lender. It…

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A: To Find: Monthly payment Capital repaid and interest paid in first and lst month Loan repaid after…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Given that the initial borrowed amount is $1000, interest rate is 10% for 5 years and at the end of…

Q: Ahlam borrows AED 3,000,000 to be repaid over 6 years at 8 percent. What is the repayment of…

A: An annual mortgage payment is an annual payment that is to be paid for a specific period of time to…

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A: A loan is a financial arrangement between two parties in which one party borrows funds at a…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: If you borrow $5000 that you agree to repay in 8 equal quarterly payments at 2.8% interest per…

A: given, Principal = $5000 r=2.8% per quarter number of quarter = 8

Q: Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8%…

A: Given: The deposited amount is $4,000 for five years The interest rate is 8% Deposited quarterly…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…

Q: a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end…

A: The above question deals with the amortization of loan by way of annuity payments and observing the…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: To calculate the monthly payment amount we will use the below mention formula   Monthly payment =…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $467.98. If the interest…

A: Given information: Loan amount $14,000 Number of years 10 Paying Quarterly $467.98 Interest rate is…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated with the help of present value of annuity function. The…

Q: An amount of $15,000 is borrowed from the bank at an annual interest rate of 12%. Solve, a.…

A: Annuity Factor = [1-(1 + Interest Rate)-No. of periodsInterest  Rate…

Q: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given,  The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

Q: Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year…

A: Note: As per Bartleby guidelines, only the first 3 subparts can be solved. Please post any other…

Q: An amount equal to $50,000 is borrowed at 7% annual compound interest.a. What size equal annual…

A: Given information: Amount borrowed is $50,000 Interest rate is 7% Number of payments is 5

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Installment is equal periodic payments a borrower pays in order to pay back his loan over a period…

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…

A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%

Q: A $14,000 loan at 6% compounded monthly is repaid by monthly payments over four What is the size of…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Ahmad borrowed $15,000 now and it is to be repaid by equal end-of-quarter installments for 5 years…

A: Quarterly payment is calculated by present value of annuity formula for periodic repayments. Present…

Q: If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in…

A: 1. Semi annual: Future value = Present value *(1+rate)^periods Future value =…

Q: A person borrows $15,000 at an interest rate of 6%, compounded monthly, to be paid with payments of…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: You borrowed $25,000 from a bank at an interest rate of 12%, compoundedmonthly. This loan will be…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: A $14,000 loan is to be amortized for 10 years with quarterly payments of $511.78. If the interest…

A: An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the…

Q: For total yearly payments of $10000 for 10 years, compare the compound amount accumulated at the end…

A: An ordinary annuity is a series of equal payments made over a period of time.  It has been…

Q: $10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower…

A: Computation:

Q: Chrome Co. borrows $1,665,000 at an interest rate of 7.32% APR monthly with equal monthly payments…

A: PV of loan = $ 1,665,000; Annuity payment, A = 15,265;Period = 1 monthinterest rate per period, r =…

Q: A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year.…

A: Debt amount = $10,000 interest rate = 6% compounded semi-annually number of payments = 12 ( monthly)

Q: A $17,000 loan is to be amortized for 10 years with quarterly payments of $568.26. If the interest…

A: Loan amount = $ 17000 Period = 10 Years Number of quarterly payments = 10*4 = 40 Quarterly payment…

Q: A sum of $20,000 is borrowed at an interest rate of 8 percent on the unpaid balance compounded…

A: Biennial payment refers to making loan payment once in every two years. As interest is provided on…

Q: Ahmad borrowed $15,000 now and it is to be repaid by equal end-of-quarter installments for 5 years…

A: The periodic payment refers to the equivalent annual cost made towards the acquisition of an asset…

Q: A recent graduate's student loans total $17,000. If these loans are at 5%, compounded quarterly, for…

A: Given: Loan amount = $17,000 Interest rate = 5% Years = 8

Q: Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 6 percent…

A: The amortization schedule can be prepared as follows:

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.