Jenn Conway needs $13,000 to prepare her web-page design business for opening. Her bank will loan her the money at the banker's discount rate of 11.1% for 128 days. Find the face value of the note so that Ms. Conway will have the required $13,000. Use banker's interest in 360 days. The face value of the simple discount note is $

Q: You owe $3,000 on your Credit card with 24% APR. What would be the minimum payment amount if your…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You have a balance of $5,000 on your credit card, which charges an interest rate of 1.3% per month.…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Katya wants to make 100 deposits to a bank account. She wants the total present value of the…

A: In this we need to find monthly rate of interest rate and than find out present value factor and…

Q: 1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to her only if…

A: 1) Loan from Bank one Borrow Amount = $85,000 Interest 10% Simple discount Time = 10 months Interest…

Q: I am having some trouble with a similar problem except in this problem you have to determine the…

A: The discount rate refers to the interest rate charged on the 200​ day note.

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A: The question is based on the concept of debt safety ratio (DSR).DSR is the ratio indicates the…

Q: You work for a furniture store. You normally sell a living room set for OMR 4,000 and finance the…

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

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A: Data given: 31 day billing cycle 10/1 Previous balance    $ 1,177.00 10/3 Credit $ 66     cr…

Q: Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could…

A: The finance charge is add-on interest paid by the borrower. These charges can be paid monthly,…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

Q: You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing.…

A: We need to calculate interest for each offer and calculate the rate of interest charged in the part…

Q: Brandon has reached his credit card limit of $5000.00. Using an online calculator, Brandon…

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

Q: the amount financed the finance charge The deferred payment price.

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Brandon has reached his credit card limit of $5000.00. Using an online calculator, Brandon…

A: When an investor borrowing money for the purpose of meet the obligations then, the cost that charged…

Q: Helen needed $5500 to start a web page design company and signed a 210-day note with a face value of…

A: Notes are considered as negotiable instruments.that can be issued to get credit for some time.it is…

Q: Zachary Porter of Abilene, Kansas, is contemplating borrowing $10,000 from his bank. The bank could…

A: Add-on Method As per this method, the interest is calculated at the start of the loan. It is then…

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A: Here, APR is 9%

Q: Zachery Porter of Abilene is contemplating borrowing $10,000 from his bank. The bank could use the…

A: The provided information are: Amount being borrowed from bank = $10,000 Rate of interest (i) = 6.5%…

Q: Otis Hopkins recently graduated from college and is evaluating two credit cards. Card A has an…

A: The selection of a credit card depends on the two factors, the type of spender whether big or small…

Q: Jennifer Lee, an engineering major in her junior year, has received in the mail two…

A: Line of credit: It is the credit extended by the banks to its customers in which customers can avail…

Q: Sidney took a $300 cash advance by using checks linked to her credit card account. The bank charges…

A: Here I am giving answer for the first 3subparts only.

Q: Lokalalo has plenty of customers, who because of the nature and price of the work these customers…

A: Lokalalo has plenty of customers, who because of the nature and price of the work these customers…

Q: Smith has arranged for a mortgage loan of $200,000. The annual rate on the loan is 12%. The bank…

A: Present value of annuity is basically the present value of all the cash that occur in future.

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A: A credit card is a narrow rectangular plastics or metal provided by a bank or financial services…

Q: On July 3, Adrian Rodriguez accepted a $6,000, 9.5%, 90-day note for merchandise purchased by Teresa…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

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A: APR on credit card: It is the rate that converts the credit card charge into a daily periodic rate.

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A: Here, Note: Here, two years to complete is considered as amount deposited after 2 years.

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A: Calculate the future value as follows:MS-Excel --> Formulas --> Financials --> FV

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A: APR or Annual Percentage Rate is defined as the annual interest, which are generated through sum…

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A: Interest (I) amount plus principal (P) is 1,250. Rate of interest (R) is 12% Time period (T) 4…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: The amount due at month-end: The amount due at month-end can be computed by adding all the charges…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Finance Charge is the amount of interest being charged on the borrowed amount from the lenders.

Q: You are purchasing a new car for $27,600. The dealership offers you three options: • 0% financing: 0…

A: Car Price = $27,600 Time Period(Months) = 48 Interest Rate = 0% Down Payment = $0

Q: David Puddy is car shopping and plans to buy a 2019 Toyota Corolla. After making a down payment,…

A: An Annuity is simply a fixed amount which is used to pay off a loan in equal installments In this…

Q: On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The…

A: As per the information provided: Date Cash flow Net balance 1-Oct 0 0 24-Oct -$1500…

Q: The treasurer for the Macon Blue Sox baseball team is seeking a $23,600 loan for one year from the…

A: Compensating Balance is the minimum balance that a borrower has to keep in his checking amount which…

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A: Monthly Payment for 11 Months  $                673.59 Time Period 11 Monthly Payment for 32…

Q: You purchased an appliance in a certain appliance center worth P35,000 using your credit card. The…

A: The question is related to Amortization Schedule. The detals ar given.

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A: Down payment is the initial amount that the buyer is ready to give to the seller as a portion of the…

Q: Sidney took a cash advance of $200 by using checks linked to her credit card account. The bank…

A: (a) Cash advance fee = Cash advance x cash advance fee             = $200 x 2%             = $4…

Q: Tim Navholtz needs a $20,000 renters insurance policy and has selected the $500,000 liability with…

A: The annual premium is the amount paid by a policyholder to the insurance company as a charge to…

Q: A student has a savings account earning 9% simple interest. She must pay $1800 for first-semester…

A: Simple interest: As the name indicates it is a simple interest computed on the amount of principal.…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Given:

Q: You are a financial adviser working with a client who wants to retire in eight years. The client has…

A:

Q: The manager of Steve’s Audio has approved Daisy’s application for 24 months of credit at maximum…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: You currently have two loans outstanding: a car loan and a student loan. The  car loan requires that…

A: In this question equal payment is paid monthly in future. So we have to find present value of loan.

Q: You owe $3,000 on your credit card with a 24% APR. What would be the minimum payment amount if your…

A: APR= 24% Monthly Interest = 24% /2  Amount = $3000 minimum per month  Payment = 3000*5%…

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.