Nalan saved the monthly 400 TL scholarship from the General Directorate of Credits and Dormitories, which she received for 4 years. After 15 years she is going to pay it back in 4 years as equal payments (R) (in todays dollars). If the market interest rate is 24% compounded monthly and the inflation rate is 3%. Calculate the R values?

Q: A 20-year-old student wants to save RM 4 a day for her retirement.  Every day she places RM 4 in a…

A: An annuity is a series of cash flows such as income or payment over a specific duration. Each cash…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $20,000 in student…

A: To know period we have to calculating present value FACTOR annuity and depending on value and…

Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: ean needs $18,000 immediately as a down payment on a new home. He can borrow this money from his…

A: Periodic payment is calculated by present value of annuity formula.

Q: 1. If money is worth 5% compounded quarterly, how much must Julea save every end of three months to…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

Q: A business tycoon is planning to provide a scholarship to one deserving student that will provide a…

A: Given: Monthly allowance = P3,000 Interest rate = 12%

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information: Future value of car : 255000 Time period : 4 years Interest rate : 14%

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $14,000 in student…

A: It can be calculated using following function in excel =NPER(rate,pmt,pv,[fv],[type]) Rate The…

Q: Cooper wants to save for college. Assuming he puts $5,000 into an account at the end of each year…

A: Money invested anywhere changes in value with the change in time. This is simply understood as the…

Q: In order to save for her high school graduation, Maria decided to save P200 at the end of every…

A: The correct answer with calculation is given in the below step.

Q: esslyn has just given an insurance company RM1 million, a sum of money she just received from her…

A: The given problem can be solved using RATE function in excel. RATE function provides interest rate…

Q: What is the annuity payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: in this we have to calculate future value FACTOR and than future value from that.

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: Jessie has been contributing $250 at the end of each 6 - month period for the past 18 months to a…

A: Semi annual Contribution is $250 Interest rate Compounded semi annually is 6% Time period is one…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Calculation of annual cash flow from savings plan: Answer: A couple must save $13,254.85 each year…

Q: a wants to give her daughter Mara a financial gift on the latter's college graduation two years now.…

A: Solved using Financial Calculator  PV = -2,000 FV = 5,000 N = 2 years * 4 quarters = 8 CPT I/Y =…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: In an attempt to have funds for a down payment, Jan Carlson plans to save $3,600 a year for the next…

A: Future value = Present Value * PVAF(rate, period)

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

A: Lump sum Payment as on today (PV)=$126,000 Duration (n)=8*4=32 periods Rate per period (i)=6%4=0.015

Q: Ken is paying off a loan by making a $50 down payment and then $50 payments at the end of every…

A: Loan is the amount borrowed by the company or individual for the purpose of fulfilling the financial…

Q: Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Add-on interest loans combine the principal and interest into one amount that is owed and later paid…

Q: Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

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: what is the size of the payments

A: Compound interest is the amount of interest earned over the interest. Under this method the…

Q: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

Q: Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound…

A: The value of equal payments or a single payment at any specific date which falls in future is called…

Q: Franklin predicted that the 1,000 pounds he was leaving would grow to 131,000 pounds in 100 years if…

A: According to time value of money, future value of the amount is determined by the following formula:…

Q: When Gustavo and Serrana bought their home, they had a 5.7% loan with monthly payments of $870.60…

A: Given information : Interest rate on loan = 5.7% Monthly payments = $870.60 Time period = 30 years…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Future value is the value of assets at a future date for a given growth rate. It is given as: FV =…

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 student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

Q: Brianca plans to save $5,000, $1,000, and $42,000 a year over the next three years, respectively.…

A: Time value It tells that value received today has more value than that of receiving the same amount…

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: Today, Julie borrowed $5000 to purchase furniture for her new house. She can repay the loan in…

A: Borrowing Amount or Loan Amount = 5000

Q: An individual needs $12,000 immediately as a down payment on a new home. Suppose that he can borrow…

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

Q: A person needs ​$17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Borrowing Amount = 17,700 Semi Annual Installments Time Period = 20 semi annual periods Interest…

Q: mount saved on interest

A: Amortized loan refers to the amount of loan which requires regular monthly payments. Every payment…

Q: Mr.Sarwar wants to save $2000 after every 6 months in a financial institution, which pays him…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: ) Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest rate…

A: The concept of compounding is used to calculate loan payment or deposit amount. It is a concept of…

Q: Rebecca Carlson purchases a car for $25,000 and finances her purchase by borrowing the money at 8%…

A: Equated Monthly Installments is one part of the equally divided monthly outgoes to clear off an…

Q: In 4 years, Jennifer Videtto will need to purchase a delivery van for her plumbing company. She…

A: Present value refers to the current value of future stream of cash flows at a given specified rate…

Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…

A: Time value of money refers that, a sum of money today has more value than the same amount received…

Q: Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Janet decided to pay a lump sum payment of $51000 so she will be able to make 6 years of quarterly…

A: Payment is the transfer, in appropriate amounts, of money, goods or services in return for goods and…

Q: To pay his university education, Mr. Ahmed is saving $ 1000, at the beginning of each year for the…

A: The formula to compute future value of annuity due:

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.