Janet decided to pay a lump sum payment of $51000 so she will be able to make 6 years of quarterly withdrawals with 3% compounded quarterly. Janet will make her first withdrawal in 8 years a) what is the size of each withdrawal she can make?

Q: Karen takes an 8-year car loan of $50,000 at 2.14%, compounded monthly. If the payments are done at…

A: Monthly Compounding Loan Amount = 50,000 Time Period of loan = 8 years or 96 months Interest rate =…

Q: Jackie deposits GH¢200 at the beginning of each month for 5 years in an account paying nterest at 10…

A: Using excel FV function

Q: Mary Kate and Ashley discover they have $40,000 from their Full House days that they haven't used.…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Sammi deposits $12000 at the beginning of each 6-month period into a special savings account. This…

A: Future Value The value of a money at a future date based on an assumed rate of growth is known as…

Q: Starting on the day he retires, Bob wants to receive payments of $10,000 at the beginning of each…

A: Present value of the amount is the worth of that amount in current times that is expected to be…

Q: In order to have 95.000€ in 20 years, mrs Rossi decides to deposit an annual constant ordinary…

A: Constant Ordinary instalment is also known as Equated monthly instalment, is a debt instalment that…

Q: Ten years ago, Mike took out a 20-year $110, 000 loan at an annual effective rate of interest of 5%.…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: Sammi deposits $12000 at the beginning of each 6-month period into a special savings account. This…

A: Annuity due refers to the series of equal payments that are made at the beginning of each period at…

Q: Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6)…

A: Calculate the amount at the end of 5 years as below: Resultant Table: Hence, amount at the end of…

Q: Gertrude wants to make $500 monthly withdrawals for 10 years from an account which pays 4%…

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

Q: Kims savings may allow her to withdraw  50000 semi-annually for 5 years starting at the end of 5…

A: The saving accounts in the banks charge interest on a compounding basis. The compounding method of…

Q: Mr. Park plans to loan 500,000 from a bank to replace his old equipment. The bank approved him the…

A: Here, Loan Amount is 500,000 Interest Rate (r) is 15% Compounding Period (m) is Monthly i.e 12 Time…

Q: Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly.…

A: Present Value of Annuity = Annuity Amount * [ {1 / ( 1 + periodic interest rate ) } + {1 / ( 1 +…

Q: A woman, with her employer's matching program, contributes $400 at the end of each month to her…

A: The question is based on the concept of Annuity.

Q: While buying a new car, Aaron made a down payment of $800 and agreed to make month-end payments of…

A: Mortgage/ Borrowings Borrowings are the loan which is taken by the individual to meet its financial…

Q: et's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years…

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

Q: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Akbar has borrowed $48,000 today and agreed to repay it in 5 years with monthly payments at the…

A: Given information: Amount borrowed is $48,000 Interest rate is 2.60% Number of years is 5 years

Q: Helen thinks she will need to replace the fence around her business in 6 years at an estimate of…

A: In this question one has to solve the present value. Now present value is the value of an asset in…

Q: Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21…

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

Q: How much will be in Sarah’s account in 10 years if she deposits $5000 in an account that pays 10%…

A: the balance in the account will be the amount deposited along with the interest accrued over the…

Q: Five years ago, a person borrowed $100,000 at an interest rate of 8% per year compounded…

A: Given,  The loan amount is $100,000 Interest rate is 8%

Q: Jianne invested Php 50,000 in a friend's business with a definite annual interest rate of 4%. How…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: trust for her today which will provide 16 payments throughout the next four years as well as the…

A: *Answer:

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments…

A: Compute the amount of the annual installment. Amount to be borrowed is $3,000, Rate of interest is…

Q: for how many years will she be able to  make those $3,600 withdrawals before the money runs out?

A:

Q: Renata converted the payment of her ₱50,000 debt to five (5) equal payments at the end of each year.…

A: The time value of money concepts involves two major methods such as present value and future value…

Q: Can you please help me work this problem out in detail?   Carol is depositing $250 into an account…

A: The amount deposited every six months is $250. The total number of deposits in 5 years would be 10.…

Q: Ms.Sue was selling a house for a cash price of 5 million pesos but agreed to have it paid on monthly…

A: House cash price (CP) = $ 5,000,000 Period = 5 Years Total number of monthly payments (m) = 5*12 =…

Q: How much should be his monthly withdrawals?

A: Given in the question: Principal amount deposited = P150,000 Interest Rate = 3% Interest is…

Q: If Ellen won $250,000 the last week in February, 1996 and invested it by March 1, 1996 in a "sure…

A: Amount invested = $250000 in 1996 Interest rate (r) = 8% Let A = Annual withdrawal from 2004 n = 15…

Q: Bria has $450,000 saved for retirement in an account earning 2.4% interest, compounded weekly. How…

A: Future Value:-It is the value of an investment at a future date based on the growth rate. It helps…

Q: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 6% compounded…

A: it is given that Loan amount - $ 1,000,000 Interest – 6% Payment frequency – 12 – monthly Time – 30…

Q: John and Rosamond want to retire in 8 years and can save $230 every three months. They plan to…

A: In this problem we have to convert interest into quarterly interest and period into quarterly period…

Q: Ann got a 30 year Fully Amortizing FRM for $1,000,000 at an annual interest rate of 6% compounded…

A: Here, Fully Amortizing FRM = $1,000,000 Annual interest rate = 6% compounded monthly Refinancing…

Q: Tony Sanchez plans to retire and to withdraw 10 annual withdrawals that will start at P60,000 at the…

A: The initial deposit will be the sum of the present value of all the withdrawals in the future.

Q: Barbara wants to accumulate $10000 by the end of 10 years. She starts making quarterly deposits in…

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

Q: A woman, with her employer's matching program, contributes $500 at the end of each month to her…

A: The future value function can be used to derive the future value of a present sum or stream of cash…

Q: Saving up for her retirement Mr. Arta begins making deposits of  $3,000 at the end of every 3 months…

A: Future value = Present value * (1+ Rate of interest) time

Q: An individual wants to have 1,000,000 AED in 10 years. Suppose she will pay no taxes at the end of…

A: According to the question, an individual wants 1,000,0000 AED in 10 years i.e. the amount of…

Q: Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an…

A: First we need to calculate size of quarterly payment of loan amount. PMT =PV*i1-1(1+i)n where PV…

Q: A woman, with her employer's matching program, contributes $300 at the end of each month to her…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Lina borrowed 5000 at 8% compunded monthly.  She must begin to repay it at the end of this month and…

A: Ordinary annuity refers to the series of periodic payments that a borrower has to make regularly to…

Q: blake purchased an annuity that had an interest rate of 2.50% compounded semi- annually. it provided…

A: Solution- 2.50% interest rate semianually=2.52=1.25%=1.25100=1+r6-1=1+r=1.002072Monthly…

Q: Ms.Sue was selling a house for a cash price of 5 million pesos but agreed to have it paid on monthly…

A: Price (PV) = P 5,000,000 Interest rate = 4% Monthly interest rate (r) = 4%/12 = 0.333333333333333%…

Q: When Florio and Rhoda bought their home, they borrowed $200,000 for 30 years at 6%, compounded…

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

Q: Barbara wants to accumulate $25000 by the end of 4 years. She starts making quarterly deposits in…

A: We need to use this equation for quarterly payment(PMT) and future value(FV) of annuity PMT…

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.