question 1 : What is the value of 600 dollar at 12 percent interest for 7 years compounded continuosly ?  a) 1326.41 dollar b) 1389.82 dollar c) 1372.76 dollar d) 1356.54 dollar

Q: You want to start to save for a major purchase. You can invest P320 every three months for 3 years…

A: The amount of interest earned can be computed with the help of future value of annuity function

Q: Problem 1. A company is considering getting involved in electronic commerce. A modest e-commerce…

A: Equivalent Cost is annuity of capital cost of an asset which is evenly distributed over life of…

Q: A commercial bank will loan you $20,000 for four years to buy a car. The loan must be repaid in 60…

A: Loan = $20,000 No.of Monthly payments = 60 Annual interest rate = 6%

Q: 1. How much money you must invest today in order to withdraw ? 1,000 per year for 10 years, if the…

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

Q: You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily.…

A: Loan amount (L) = $29039.30 - $1700 = $27339.30 Interest rate = 10.8% daily compounding (m = 365) n…

Q: How much should you pay now for (600)-4 dollars guaranteed per year for (9) years starting from next…

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

Q: Apricot, Inc purchased a new machine on November 1, 2017 for $1,000,000 on credit. The supplier has…

A: The question is based on the concept of Financial analysis

Q: suppose you want to buy a new car that costs you 15514 OMR by a loan from bank Muscat for 6 years.…

A: Bank charges are the charges which are charged by bank for providing loan to the customer and other…

Q: 9. A $12,000 car loan at 2.5% for 4 years has a monthly payment of $2E for 3 years has a monthly…

A: Loan payments are paid by the monthly payment that carry the payment for interest and payment for…

Q: 9.00060.O 0..0H 1- Suppose that you decide to buy a car for $25,767, including taxes and license…

A: Total cost to buy a car is $25,767, $8000 is the down-payment and the loan is of amount $17,767…

Q: Assume that you are going to receive $690,000 in 10 years. The current market rate of interest is…

A: a. Present value of this amount to be received after 10 years = Amount to be received x Present…

Q: At a certain consumer electronics store, you can buy an LCD TV by paying four installments of 2000…

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

Q: 1 You deposit P10 000 into a 9% account today . At the end of two years , you will deposit P30 000 .…

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

Q: Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per…

A: 1) Quarterly payment (Q) = $6000 r = 6% per annum = 1.5% quarterly n = 8 years = 32 quarters

Q: suppose you want to buy a new car that costs you 11284 OMR by a loan from bank Muscat for 6 years.…

A: Payment on a normal loan is considered as an annuity on which the loan value gradually decreases and…

Q: Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the…

A: Present value of annuity is calculated using the following formula: Present value= P(1-(1+r)^-n)/r…

Q: A bank lends some money to a business. The business will pay the bank a single payment of $180,000…

A: The present value function can be used to derive the present value of a future sum or the present…

Q: A house and lot are to be purchased by paying P 15,500.00 monthly payable in 25 years. The first…

A: Present Value of annuity due formula will be used to calculate the value of house and lot as the…

Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…

A: Investment = 100 Quarterly Compounding Required Return = 4%/4 =1% per quarter Time Period = 5…

Q: Question 5 "For the last 8 years, an engineer has saved $800 every 6 months for the repairs…

A: Effective annual interest rate is the real rate that we earn on our savings or paid onto a loan when…

Q: 6. A company is buying a piece of manufacturing equipment now for $45,000. They expect to have to…

A: Cost of equipment now (PV) = $45000 Inflation rate (i) = 3.8% Period (t) = 10 Years

Q: 19 You borrow $5,600 to buy a car. The terms of the loan call for monthly payments for four years at…

A: Periodic payment amount refers to the equal installment amount that is disbursed over the term of…

Q: 10. . You start to save for a major purchase. You can invest GH¢320 every three months for 3 years…

A: Compounding effect on the investment refers to the net amount of interest that is being charged on…

Q: PLEASE USA BA II WHEN POSSIBLE. A construction company takes a loan of $1,732,000 to cover the cost…

A: Loan amount (PV)=$1,732,000 Duration (n)=5*12=60 periods Rate per period (i)=8.55​%12=0.007125…

Q: 7. How long will it take 1, 000 to earn 500 interest if the money is earning at 16% converted…

A: Question no. 7 For this we need to use below mentioned formula Future value= Present value +…

Q: Problem: Yuseff was able to sell a car whose suggested retail price is $1,2000.000. The vehicle will…

A: In this question the retail price is lower than the down payment which is not possible. So let’s…

Q: You want to start to save for a major purchase. You can invest P320 every three months for 3 years…

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

Q: ou want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan…

A:

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A: Solution :- With rise in inflation, the service charges will also increase. So, when inflation rate…

Q: Please write the correct answer. Thank you!

A: Hi student Since there are multiple questions, we will answer only first question. Since first…

Q: If a company places $200 in a deposit account that pays 7% interest compounded annually, how much…

A: Time value of money (TVM) means that the money received today will be worth more than the amount…

Q: uppose you want to buy a new car that costs you 11993 OMR by a loan from bank Muscat for 6 years.…

A: Solution: Annual payment to be paid to the bank every year will be computed by dividing the amount…

Q: If you deposit $45,000 into an account earning 4% interest compounded quarterly per year: 1- How…

A: Future value = Present value * (1+r)^n Where, r = rate of interest per period  i.e. 4%/4 = 1% n =…

Q: 11. If $10,000 is invested today in an account of Faisal Islamic Bank of Egypt that earns interest…

A: Using excel PMT function

Q: 5. Kirk Development buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A:

Q: How much money would you have to deposit for 20 consecutive periods starting 1 year from now if you…

A: Accumulated amount required (F) = P 250000 Interest rate = 12% compounded quarterly n = 20 payments…

Q: Question 4. Your company will generate GH¢ 55,000 in annual revenue each year for the next eight…

A: in this problem you have to find out present value FACTOR and present value of future cash flow and…

Q: You purchase a new TV with a store credit card for $800. You have a year to pay off the TV, but…

A: FV=PV×1+Rmm×n where, FV= FUTURE VALUE PV= PRESENT VALUE R=RATE n= no of period m= compounding in a…

Q: 4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay…

A: Simple interest is the simplest method of calculating interest. A fixed-rate of interest is charged…

Q: A bank lends some money to a business. The business will pay the bank a single payment of $184,000…

A: A financial measurement that calculates the worth of a potential sum of money or stream of payments…

Q: What is the value today of receiving $8,000 at the end of each six-month period for the next four…

A: Annuity refers to series to equalized payments that are either made start or end of specific…

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.