kaye's housing loan worth 810,000 for 5 years was approved by the bank with an interest rate of 8% per annum. How much will be her monthly amortization?

Q: Skeng would like to receive equal instalment of $250,000 at the end of each year for the next 8…

A: FORMULA PVA = P*[1-(1+R)-N]/R Where PVA - Present value of annuity P - Annual payment amount i.e.…

Q: Soledad decides to have P2,100 at the end of each quarter, which is the amount paid into her…

A: Future value of annuity due = P×1+in-1×1+ii Where, P = Quarterly deposit = P2,100 i = Effective…

Q: Jordan's investment manager offers her an interest rate of 8.0% compounded monthly on her…

A: Earlier Interest rate is 8% Compounded monthly Interest rate changed to  is 8% compounded annually…

Q: Mr. Cama borrowed one million pesos from a bank to buy a house which he would pay in 15 years. How…

A: Calculation of monthly payment to be paid on the loan if compounded annually::: Cost of the…

Q: Lillian took out a 20-year loan for $170,000 at 8.8% interest, compounded monthly. If her monthly…

A: A loan is a financial arrangement in which one person borrows funds from another person at a…

Q: if you owe $35,000 payable at the end of eight years, what amount should your creditor accept in…

A: Amount due after 8 Years (FV) = $ 35000 Interest rate (r) = 13% Period (n) = 8 Years

Q: Ms. Anderson plans to purchase a home for $300,000. She intends to pay 20% of the purchase price as…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: kenzo decided to buy a brand new car worth php 1, 200, 000 and plan to amortize the loan in monthly…

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

Q: Mr. Barela's monthly amortization is P3,500 payable at the end of each month. His house and lot will…

A: Maturity value is defined as an amount payable to the investor at the end of the holding period of…

Q: John House has taken a $150,000 mortgage on his house at an interest rate of 6% per year. If the…

A: The annuity refers to the series of cash payments and receipts that finished over a period. The…

Q: Freya plans to invest $1,600 every six months for 25 years. How much will this investment be worth…

A: Given information: Investment every 6 months : $1,600 Time period : 25 years Rate of interest : 8.2%

Q: Margo borrows $900, agreeing to pay it back with 5% annual interest after 10 months. How much…

A: Interest is the amount that an investor receives on the principle amount over certain period of…

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: How much will their monthly payment be?

A: P = PV x r / [1 - {1 / (1 + r)^n}] Here, P = Monthly Payment PV = Present Value i.e. $250000 r =…

Q: Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: Arabella converted her loan to light payments which gives her an option to pay 12,000 every 2 years…

A: Present Value of annuity refers to the today's value of cash flows of a series of equal cash flows…

Q: Mr. Barela’s monthly amortization is ₱3,500.00, payable at the end of each month. His house and lot…

A: Given, Amount Payable (each month) = ₱3,500.00 No. of years (fully paid) = 20 years Interest Rate…

Q: Morris paid £500 a month for 20 years to pay off the mortgage on his Glasgow house. If his down…

A: Given:

Q: Reggie availed of a deferred payment scheme from a bank that gave her an option to pay ₱5,500…

A: solution given Monthly payment 5500 Rate of interest 12% annual Compounding…

Q: The Sandersons are planning to refinance their home. The outstanding principal on their original…

A: First, we need to find the current instalment which is given by  Loan amount = PV of all instalments…

Q: Ms. C took a loan of $150,000 at a rate of 7 percent. She can pay equal installments of $25,000 at…

A: The number of years over which she can repay the loan amount can be calculated using the NPER…

Q: You obtain a loan of 1.5M at the rate of 18% compounded annually in order to build a house. The…

A: Here, Loan Amount is 1,500,000 Interest Rate is 18% compounded Annually. Time Period is 1 year…

Q: Mrs. Dollie availed a cash loan that gave her an option to pay Php10,000 monthly for one year. The…

A: An annuity is a stream of cash flows wherein an equal payment is paid at the end of every period.

Q: 2. Emma availed of a cash loan that gave her an option to pay P10,000 monthly for 1 year. The first…

A: Monthly payment = P 10000 Interest rate = 12% Monthly interest rate = 12%/12 = 1% Number of monthly…

Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…

A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…

Q: Ruth availed of a cash loan that gave her an option to pay P5,000 monthly for 1 year. The first…

A: Periodic Payment = P5,000 Time Period = 1 Year  Frequency = 12  Interest rate = 5% Compounded…

Q: Mr. Ramos savings allow her to withdraw 50,000 semi-annually for 8 years starting at the end of 3…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Mr. Ramos savings allow her to withdraw 50,000 semi-annually for 8 years starting at the end of 5…

A: Deferred means something which starts gets delayed or start after some time period in future.…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…

Q: Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual…

A: Following details are given in the question : Future value = $22559 Time period = 5 years Interest…

Q: A real estate investor feels that the cash flow from a property will enable her to pay a lender…

A: This is the problem of the time value of money wherein the interest rate is mentioned and gets…

Q: To help finance the purchase of a house and lot , a couple borrows P350,000. The loan is to be…

A: The interest rate is the proportion of a loan that is charged as interest to the borrower. It is the…

Q: Suzana would like to accumulate RM5,000 in 3 years in a saving account which pays 6% annual interest…

A: A.  Monthly deposit at the end of the month P= PMT * ((1+r)^n-1)/r P= future value of annuity PMT=…

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: Mr. Ramos buys a house and lot that cost P450,000. He pays P75,000 as down payment and promises to…

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

Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…

A: Future value table: This table shows the future amount of investment at specific rate and periods.…

Q: Kim's savings may allow her to withdraw P50,000.00 semi annually for 5 years starting at the end of…

A: An annuity is a financial term that depicts a series of cash flow occurring at an equal time…

Q: For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the…

A: Year end installment = P 250,000 Second year maintenance cost = P 10,000 Annual increase in…

Q: Emma bought a $360,000.00 house, paying 10% down, and financing the rest at 2% interest for 20…

A: Price of house = $ 360,000 Dow payment =10% Loan amount (PV) = 360,000*(1-0.10)…

Q: Dory deposits a certain amount of money into her savings account at the beginning of each quarter…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Mr. Lucy can invest $150 per month in an annuity for 2 years. What interest rate must she invest at…

A: FV= $5,000 Annuity amount= $150 per month= $1,800 per annum n= 2 years r= ?

Q: Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest…

A: Interest is an extra amount which borrower has to pay on the deposited amount for the period. It is…

Q: Skylar bought a $270,000.00 house, paying 10% down, and financing the rest at 3% interest for 15…

A: A mortgage is a form of secured loan that is meant to be used to purchase or maintain real estate.…

Q: Moon purchases a lot for $300,000. Moon agrees to pay $25,000 dollars at the end of each year. If…

A: Time has been precious in all perspectives, however in terms of finance, time has a monetary value.…

Q: In 6 years, Mrs. Fong must pay off a note with a face value of $14,000, and interest of 10% per…

A: Solution: 9   Face value of notes $14,000 Interest rate semiannually (10% / 2) 5% Period (6…

Q: Ann got a 15 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 7% compounded…

A: Here, Present value = $1,500,000 Number of years = 15 years Rate of interest = 7% compounded monthly…

Q: Sabel converted her loan to light payments which give her an option to pay PHP1,500 every quarter…

A: Answer: Calculation of the amount of the loan: Given: Quarterly payment (P) = PHP1,500 Number of…

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.