Quinn opened an account with an initial deposit of $2500. At the end of the 2nd and 8th years, he deposited $3000 and $5050, respectively while at the end of the 5th year, withdrew $3000. The account earned 2% nominal annual interest compounded semiannually for the first 3 years, 3% annual effective rate of discount for the next 2 years, and 3.5% annual effective interest rate for the remaining time. How much will Quinn have in his account at the end of the 12th year? and determine Quinns average annual rate of return for the 12-year period.

Q: Jim Hopper plans to place his money in a certificate of deposit that matures in three months. The…

A: A certificate of deposit is a fixed income instrument issued by banks and credit unions. Interest…

Q: A man borrowed $1000 from a bank at 8% interest. He agreed to repay the loan in two end-of-year…

A: Given information: Amount borrowed is $1,000 Bank interest rate is 8% Loan paid in two end of the…

Q: Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of Year 3 in the…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: Wei Min opens a retirement account that pays 8%/year/month. For the next 30 years he deposits $300…

A: Given information regarding Wei Min's retirement account : Amount deposited : $300 per month Rate :…

Q: A person deposited every 6 months ¢ 50,000.00 in an account that paid him 16% interest, convertible…

A: Semi-annual payment = ¢ 50,000.00 Interest rate = 16%  Time Period = 20 Years

Q: lacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank on April…

A:

Q: A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is…

A: Accumulated amount required (A) = P 2000000 n = 20 years = 40 semiannual payments Let S = First…

Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…

A: Notes Payable: Notes payable is a liability account where a borrower records a written promise to…

Q: Zetix borrowed $20,000 on a one-year, 10 percent note payable from the local bank on March 1.…

A: Notes Payable:   Noes payable is a liability account where borrower makes written promise to lender…

Q: Calculate the amount of cash payments Zetix was required to make in each of the two calendar years…

A: Calculation of Cash Payment = Amount of Notes Payable * Rate of Interest * 3 Months/12 Months Since…

Q: On April 8, Manuel borrowed $700.00 from his uncle at 5.6% per annum calculated on the daily…

A: In installment loan system, repayment schedule is constructed that show balance of amount due after…

Q: Stephen deposited $1,200 at the end of every month into an RRSP for 8 years. The interest rate…

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Q: On May 8, Manuel borrowed $780.00 from his uncle at 4.6% per annum calculated on the daily balance.…

A: Balance before Payment Amount paid Interest paid Principal repaid Balance After Payment…

Q: Jackie obtained a new credit card from a national bank, MBNA with a stated rate of 18% per year,…

A: The Compound interest is simply the interest on interest. It is the interest that is given on both…

Q: Vincent deposited $1,300 at the end of every month into an RRSP for 9 years. The interest rate…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: Casey deposited $1,100 at the end of every month into an RRSP for 8 years. The interest rate earned…

A: Given information: Annual deposit of $1,100 at the end of every month Number of years is 8 Interest…

Q: Edward borrowed an amount to his friend and promised to pay the principal amount and accumulated…

A: Let the amount borrowed be "x" Simple rate = 15.118% Amount paid at the end of 3 years = P15.855.…

Q: On the first day of the year, a man deposits $4,000 in a bank at 8% per year, compounded annually.…

A: Deposit at the begining of the year is $4,000 Interest rate is 8% per year Withdrawal at the end of…

Q: Mr. N. invests $5,000 in a certificate of deposit (CD) at his local bank. Hereceives 2 percent…

A: RATE 2% YEARS 5 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $5,000

Q: Sam deposited $900 at the end of every month into an RRSP for 7 years. The interest rate earned was…

A: Here, Monthly Deposit is $900 Interest Rate for first 4 years is 4.50% compounding Semi Annually…

Q: brian borrows a sum of money from a bank at stipulated interest rate componded annually.The loan is…

A: Annual payments for the loan is calculated by excel function PMT. Note than the present value of…

Q: Jane requested a loan from a bank amounting to P405,630 to continue her small business. But she only…

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Q: Jacobs Company borrowed $10,000 on a one-year, 8 percent note payable from the local bank on April…

A: The loan from bank has been taken against note payable in one year with interest payments paid…

Q: A man deposits ​$14,000 at the beginning of each year for 14years in an account paying 77​%…

A: The question is based on the concept of future value of annuity payment due. Future value of an…

Q: Julia Roberts deposits 4600 dollars in an account paying an effective rate of interest of 5.2…

A: Simple Interest formula is  Amount = Principal + (Principal*rate*time)

Q: A person deposits an amount of 20,000 dinars in a financial institution with compound interest, the…

A: Amount of Deposit = 20,000 Interest Rate (r) =1% Years (n) =12

Q: Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If…

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Q: On April 8, Manuel borrowed S700.00 from his uncle at 5.6% per annum calculated on the daily…

A: Here, Borrowed Amount is $700 Payment is $110 Interest Rate is 5.6% Compounding Period is Daily

Q: Zoey signs a note to repay $10,000.00 plus 8% interest in 1 year. Four months before the note is…

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Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Working:  Annual payment (P) = $40,000  Number of years (n) = 10 years  Rate of interest (r) = 10% =…

Q: Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2…

A: We need to use present value formula to calculate required deposit now. The equation is PV =FV(1+i)n…

Q: Alexis deposited $1,000 at the end of every month into an RRSP for 7 years. The interest rate earned…

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Q: A bank employee passed the ICWA examination and his salary was raised by P30,000 starting from the…

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Q: Jane requested a loan from the bank amounting to 312,870 to continue her small business. But she…

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Q: A person borrowed $8000 from Rafidain Bank with compound interest of 9% annually and agreed with the…

A: Given, Amount borrowed $8,000 Interest rate 9% Term of loan is 5 years

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A: When an investment is made, interest is earned on the deposit so made. The accumulated value of an…

Q: On January 1 of this year, Shannon Company completed the following transactions (assume a 10% annual…

A: Present Value = Future Value1+in   Present Value Factor @ 10% Year Present Value Factor @10% 1…

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4%…

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Q: bank offers 5%compound interest calculated on half - yearly basis. A customer deposit 1600.00 each…

A: In this question future value is to be find out. Future value is the value of an asset grown to some…

Q: Calculate the amount of cash payments Jacobs was required to make in each of the two calendar years…

A: Compound Interest= P×1+rnnt-P

Q: Kelsey deposited $1,100 at the end of every month into an RRSP for 6 years. The interest rate earned…

A: An RRSP is a Canadian retirement plan where money grows at a fixed rate and the final tax on this…

Q: On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value,…

A: The financial statement indicates the operational activities of the entity and its stand in the…

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A: Annuity means where regular payment is made at the end of regular period and full amount with…

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.