Julie deposits $600 at the end of each month into her savings account. If the amount earns 5.25% compounded monthly, how much money will she have in 6 years?

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: Daniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have…

A: Simple interest is the method of calculating interest on the amount of investment. A fixed amount is…

Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…

A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%

Q: Priscilla deposits $200 at the end of each month for seven years at 5% interest compounded monthly.…

A: Future Value = R [ (1+i)n - 1]i   where, R = Monthly deposits n = Number of months i = Interest Rate…

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: 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: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…

A: Given information : Monthly deposit = $300 Interest rate = 10% Tenure = 6 years

Q: Clara borrows $41,000 today at 2.9% per year compounded quarterly, to start her own buisness. she…

A: In this question we need to compute the Clara's quarterly payments from following details: Loan…

Q: Kym plans to deposit $100 in an account at the end of each month for the next five years so that she…

A: The monthly payment is $100 for the next five years at 6% compounded monthly. Future value of an…

Q: Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year.…

A: solution given Deposits each month (p) 700 Rate of interest (r) 12% Time period…

Q: If Trey opens an account with $7,500 and plans on depositing $1,500 every year-end, how much will he…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Hannah places $ 3500 into an account earning 8.75% interest compounded continuously, how much will…

A: GIVEN, PV = $3500 R=8.75% T=7 YEARS

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: Karen deposits 300 each month into an annuity that pays 8% annual interest at the end of each year.…

A: Future value of annuity =PMT [{(1+i) n-1}/i]*(1+i) Where i=periodic interest rate n=number of…

Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…

Q: Hannah deposits OMR 500 in an account earning 5% compounded half yearly. What will be the interest…

A: Amount deposited = OMR 500 Interest Rate = 55 per annum Interest rate (r) half Yearly = 5%/2 = 2.5%…

Q: Christopher wants to have 50,000 pesos in 4 years by saving equal regular payments. He can make a…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: How much should Manvir have in a savings account that is earning 3.50% compounded semi-annually, if…

A: Present value of an investment is the sum total value of all deposits in today's period that are…

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Jovaira deposits ₱10,000 every 3 months in a time deposit account giving 7% interest rate compounded…

A: The amount at the end of 5 years can be computed with the help of future value of annuity

Q: Peter is saving $5,000 monthly deposit into an account that pays 7% compounded monthly. What would…

A: Monthly deposit (P) = $ 5000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Given information: Initial deposit amount is $900 Monthly deposit of $80 Interest rate is 3%…

Q: Mrs. Carter deposits P 100 in the bank at the end of each month. If the bank pays 6 % per year…

A: Monthly deposit (P) = P100 Interest rate = 6% e = 2.7182818284590452353602874713527 Monthly interest…

Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…

A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: Kelly Malone plans to have $50 withheld from her monthly paycheck and deposited in a savings account…

A:

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: In 6 years Harry and Sally would like to have $24000 for a down payment on a house. How much should…

A: In this question we need to compute the each month deposit to have $24000 for down payment in 6…

Q: Billy plans to deposit $200 into a bank account at the end of every month.  The bank account has an…

A: According to the time value rule, the same amount of money can have different purchasing powers in…

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: How much should Brianna's dad invest in a savings account today, to be able to pay for Brianna's…

A: Amount of deposit is equal to present value of rental payments

Q: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: Rosina plans on saving $2000 a year and expects to earn an annual rate of 6.9 percent. How much will…

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

Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…

A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…

Q: For 12 years, at the beginning of every month, Elsa deposits $200 into a savings account. Once the…

A: The cumulative value of an investment is the entire amount it now possesses, including the money…

Q: Daniel deposits $20,000 into an account earning interest at 6% per year compounded monthly. He…

A: Information Provided: Initial deposit = $20,000 Interest = 6% compounded monthly Withdrawal = $1200…

Q: How much should Lisa have in a savings account that is earning 2.50% compounded monthly, if she…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: At the end of each quarter, Patti Deposits $700 into account that pays 12% interest compounded…

A: In order to find the ending amount one needs to find the future value.

Q: a.) What is the monthly rate? b.) How many total deposits?

A: Information Provided: Amount = $750,000 Term = 4 years Interest rate = 15% compounded monthly

Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…

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

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Mrs. Reyes decided to save money for her grandchild. She deposit Php 300 each month into an account…

A: Annuity: It refers to the present and future value of recurring payments at a particular point of…

Q: Mr & Mrs. John have decided to start a monthly savings program in order to provide for their son's…

A: Accumulated amount (F) = RM 50,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: Kim deposits 4,700 pesos into an account earning 1.25% intererst per annually. How much money will…

A: We need to use simple interest  formula given below Simple interest =Principal*Rate*Time

Q: Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings…

A: GIVEN, FV = $56,397 M=26 PER YEAR N=9 R=0.6%

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: Beatrice deposits $75 at the end of each month into an account earning 4.75% compounded monthly. How…

A: Compound interest refers to the interest accrued not only on principal amount but also on the…

Q: In 5 years a couple would like to have $25,000 for a down payment on a house. What fixed amount…

A: Given: Accumulated amount (A)=$25000compound interest rate (r)=9%No. of times compounded in a year…

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.