Khiel wants to buy a car that costs $10,000, plus an extra 13% HST for a total price of $11,300. The dealership has a deal for $0 down payment and charges 2.99% interest on the loan. Khiel plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years. how much is his weekly care loan payment? how much will he have paid to the dealership by the time his loan is paid off? how much interest will be paid?

Q: The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on…

A: Tbill A Tbill B Purchase Date 14 January 2019 14 January 2019 Maturity Date 08 March 2019 26…

Q: Currently, your credit card has a balance of $14,000. The credit card has an effective monthly…

A: The number of monthly payments may be calculated through following formula   Present value =…

Q: Almirah wants to have P50,000 at the end of 4 years for her graduation expenses and blow-out party.…

A: Investor always prefers compounding interest rather than investing in investments that offer simple…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 million by…

A: Amount required at retirement (FV) = $3,000,000 Interest rate (r) = 0.07 Number of deposits (n) = 46…

Q: On 2018-05-08, Muhammad and Priyanka each buy a Tbill with a face value of $4,000. 12-30. Muhammad…

A: T bills are purchased on discount to the face value of T-bill and the discount rate depends on the…

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A: The covariance between two stocks signifies the effect of one stock on the other stock and…

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A: APR is the annual percentage rate. It refers to the quoted rate or the nominal rate. EAR is the…

Q: Barney and Alyson agree on the price calculated above. Ignoring tax and any other expenses, what is…

A: Given: Purchase price = $984.31767830979 Payments received = $37 Number of payments = 2 Sale value =…

Q: 1.  Do you think that financial managers should be held to a higher standard of ethical behavior?

A: Yes, absolutely financial managers should be held to a higher standard of ethical behavior.…

Q: The difference between oral auctions and second-price auctions

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Q: E8

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Q: Ningbo Industrial Concepts Incorporated             Initial stock price $115.00             Exercise…

A: Stock Price is $115 Exercise Price is $115 Call Price is $4.75 Put Price is $4.50 To Find: Dollar…

Q: Phoenix Products Inc. requires a new machine to produce a part for a solar air conditioner. Two…

A: Rate of return can be calculated using internal rate of return(IRR).   As per IRR:         Lower…

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A: We need to donate the amount equal to the present value of future scholarship payments, since the…

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A: Given: Loan amount $3,700 Interest rate = 13% Years =1

Q: A piece of machinery can be bought for Php 10,000.00 cash, or for Php2,000.00 down and payments of…

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Q: An investment offers $6,500 per year, with the first payment occurring one year from now. The…

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

Q: 5. A man wishes his son to receive P200,000 ten years from now. What amount should he invest if it…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: A survey of 480 households in a certain area yielded this data concerning their housing situation.…

A: Given, Total number of households is 480

Q: There are four similar coupon bonds.If the only differences are their maturities and YTMs.which one…

A: Solution:- Volatility of a bond refers to the change in bond price due to change in market interest…

Q: Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous…

A: Credit is one of the liability of individual or business. When individual is taking some amount on…

Q: Toyota just issued ten-year bonds that make annual coupon payments of R50. Suppose you purchased one…

A: Here, To Find: New price of the bond =?

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A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Four years ago, Sandra Stills bought six-year, 5.5 percent coupon bonds issued by the Oriole Corp.…

A: We have all the characteristics of a bond. We known the quantum and timing of cash flows emanating…

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Q: Problem-solving practice 1 A chocolate bar cost 12p in 1995. It costs 20p in 2018. Prices are…

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Q: Justin and Candice are saving for their daughter Alyssa's college education. Alyssa just turned 10…

A: The PV analysis is conducted to find the profitability of a project. It allows an investor to make…

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A: Weighted average is a forecasting technique where weights are assigned to the previous data. In this…

Q: You are starting  a new project.This project would last 4years. The following is the input…

A: Net Present Value (NPV) of this project: $58,06,203 Explanation:

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Q: Danno is trying to decide which of two bonds to buy. Bond H is a 10 percent coupon, 10-year…

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Q: offer 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What…

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A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…

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A: Given: Tinkle.com Volatility is 36.10 Circumbendibus Wheels has volatility 57.30% NOte: Volatility…

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A: Net present value is the difference between the present value of cash inflows and initial…

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A: Return on investment  = (P1 - P0 + Dividend)/P0 Where P1 = Closing Price  P0 = offer price

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A: Cash flow diagram is a representation of the movement of fund. An upward arrow represents cash…

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.