Answered: Rahman paid RM 9600 as interest on a…

Rahman paid RM 9600 as interest on a loan he took 5 years ago at 16% rate of simple interest. What was the amount he took as loan? Select one: O a. RM 16400 O b. RM 18000 O C. RM 12000 O d. RM 12500

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Related questions

Q: 1) Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24…

A: Part 1: Borrowed Amount = P125,000 Interest Rate = 11% Time period = 24 months

Q: Dr Musonda is struggling to repay his loan of K600,000 with payments of K12,800 made monthly in…

A: The future value is useful to investors and financial planners, as they use it to estimate how much…

Q: Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in…

A: Principal loan amount = P150,000 Loan period = 5 years Current market rate = 0.10 Principal will…

Q: Mr. Tan borrowed money from a bank with an interest of 8% compounded monthly for 6 years. His…

A: Monthly payment (M) = P 16000 Number of payments (n) = 6 years = 72 months r = 8% per annum =…

Q: 4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: A man borrowed RM1200 for 5 months and was charged 9% simple interest. How much interest did he…

A: The amount of interest earned can be calculated with the help of simple interest function

Q: A businessman deposited an amount of P6,000 in a savings account for 5months and 25 days at a rate…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: 57. Stuart pays back two student loans over a 4-yr period. One loan charges the equivalent of 3%…

A: A simple interest charges an equal amount of interest on the face value of the loan. The total…

Q: Muthu purchases a shop and mortgages it for RM100,000. The mortgage requires repayment in equal…

A: Loan amortization is a kind of annuity. That is fixed sum of money is repaid at equal intervals. If…

Q: Mr. Dizon borrowed P35,000.00 from the cooperative bank. Find the simple interest if it is to be…

A: Given information Amount borrowed (Principal) =P 35,000 Interest rate= 1.5% per month Period for…

Q: Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in…

A: The amount of proceedings will be discouraged value of money today of future principal amount to be…

Q: The Engs just purchased a home in Port Moody for $1,200,000. They made a down payment of 30% and…

A: Solution- Ordinary annuity is the PMT which are made at the end of the period.

Q: to borrow PHP 1.7M from a bank and plans to repay the same amount in 8 years. If the bank charges…

A: Concept of Bank Loan Bank borrowing and amortisation

Q: f Brian wants to buy a house that cost $100000 the bank agreed to give him 80% of cost at 0.07…

A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…

Q: Ann Hopkins borrowed $60,000 for her child’s education. She must repay the loan at the end of 8…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: Amiel paid P1,400 interest for his loan from a cooperative that charges simple interest rate of 3.5%…

A: The loan is the amount of money lent by the borrower for fulfilling urgent financial needs. Simple…

Q: Manuel has a $300,000 loan to be paid back with 5.329% interest over 30 years. What are Manuel's…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: P15,000 P20,000

A: In simple interest there is no interest on interest and there is no compounding of interest and this…

Q: Ali buys an apartment for RM150,000. He makes a 10% down payment and finances the balance through…

A: Loan amount (L) = Price - Down payment = 90% of RM 150000 = RM 135000 Monthly payment (M) = RM…

Q: Hanzalah took a loan of RMY from Bank ABC at interest rate of 4.5% compounded monthly.After 10…

A: We need to use compound interest formula to solve this formula A=P(1+i)n Where A=Final payment…

Q: Marissa took a loan of RMY from Bank Perpaduan at interest rate of 6.5% compounded every two months.…

A: Following details are given in the question: Future value = RM 8386.65 Interest rate = 6.5% Time…

Q: Faysal wants to expand his business and needs an amount of OMR 3,000. He approached Sohar Bank for…

A: Faysal borrow OMR3000 from a Bank @7% Interest rate Interest Compounding half yearly.

Q: 3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the…

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

Q: Arif has to pay RM 200 at the beginning of each month for 36 months to settle a loan at 12%…

A: Original amount of loan means the principal amount which is being taken by the borrower from the…

Q: Curtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank,…

A: Given, Price of property is $230,000. Term of loan is 20 years. Interest rate is 9% per year.

Q: 3. Three months after borrowing money, David Tan pays on interest of Php. 270.00. how much did he…

A: Interest rate 5.50% Interest paid after 3 months 270 Let the principal amount be X.

Q: Mr. of Masood each a sum deposits Rs. 500 quarter. So as to at the end accumulate Rs. 10,000 to…

A: In this we have to determine number of payments required to achieve the objective.

Q: Joe Levi bought a home in Arlington Texas for $150,000. He put down 20% and obtained a mortgage for…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: Syaherah is applying for a RM50,000 hire purchase from BCD Bank. The interest rate of the loan is 6%…

A: The term charges are the interest amount of a loan. These are calculated on the principal amount of…

Q: 9. Marissa took a loan of RMY from Bank Perpaduan at interest rate of 6.5% compounded every two…

A: The formula for compound interest is: A=P(1+rn)nt A is the final amountP is the initial principal…

Q: (c) Alata Kwaku borrowed ¢2,130 from his uncle and promised to pay him ¢2,720 after 2 years. With…

A: c) Given, Future value of borrowed amount = ¢2,720 Present value borrowed amount = ¢2130 number of…

Q: Find the amount of loan taken by Rahimah.

A: Information Provided: Payment every 2 months = PM 2,106.71 Term = 8 years Interest rate = 6%…

Q: Dr Musonda is struggling to repay his loan of K600,000 with payments of K12,800 made monthly in…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: A man took out a loan with a loan shark. He accepts P21,342.00 from the loan shark and promises to…

A: Equation for calculation of simple interest is as follows: Interest= P x R x T ÷ 100 so, to…

Q: Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in…

A: Loan amount = P150,000 Interest rate on loan = 0.06 Annual interest amount = P9,000 (i.e. P150,000 *…

Q: Citari took a personal loan of RM10,000 and paid equal monthly payments for five years at an…

A: A loan amount represents a sum of money borrowed by one person from another. In a loan agreement,…

Q: A man borrowed P18,400.00 from a credit union that charges 8% simple interest for 1 year and 9…

A: Total months = 12 + 9 = 21 months

Q: Mr. Isidro borrowed P1,150,000.00 for the purchase of his car. If his monthly payment is P25,000.00…

A: Formula: Yearly payment = Monthly payment x 12 Months

Q: teve Perry borrowed $50,000 at 12% ordinary interest for 60 days. On day 20 of the loan, Steve made…

A: In this question, the 12 % ordinary interest is to be charged for 60 days duration.( Given in the…

Q: Find the simple interest on a loan of P65,000 if the loan is given at a rate of20% and is due in 3…

A: 1. Calculate the simple interest by the simple interest formula. Where 'P' refers to the principal…

Q: What is the interest paid by Victor on Php 35,000.00 that he borrowed for 2 years at 15% simple…

A: Interest: It refers to the monetary charge on the mortgage or loan borrowed by the borrower from…

Q: If I bought a car for $25,615, financed 5 rs at 6.9% apr, what will the balance of the loan be after…

A: Loan is an agreement between lender and borrower where lender gives lump-sum money to borrower in…

Q: b) Ameena borrowed a certain sum of money from a financial institution that charged 4.5% compounded…

A: Monthly payment (a) = RM725 Monthly interest rate (r) = 0.00375 (i.e. 0.045 / 12) Monthly period (n)…

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800000 down payment,…

A: Mortgage are the loan which is taken by the individual to meet its financial requirements. The…

Q: Eren Yeager borrows $100 000 to buy his dream home at an interest rate of 12% p.a. compounding…

A: Mortgage/ Borrowings: Borrowings are the loans taken from banks or non-banking financial…

Q: Rahma borrowed OMR 600 at the rate of 12% from Bank Dhofar for 6 years. Find the interest she will…

A: Interest expense is usually a non-operating expense which an entity has to pay on loans, bonds etc.

Q: Luke earned P4200 in interest from his simple interest account over the last 3 years. The account…

A: Simple interest (I) = P4200 Period (t) = 3 Years Interest rate (r) = 1.75%

Q: 1. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20%…

A: Gross loan (Par value) = P 100,000 Interest rate = 20% Period = 1 Year Interest amount deducted =…

Q: If I took out a loan for $550,000 6 years ago with an interest rate of 7%p.a, paying principle and…

A: Amount owe can be measured by calculating future value of the loan taken. The formula of future…

Concept explainers

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.

Question

Rahman paid RM 9600 as interest on a loan he took 5 years ago at 16% rate of simple interest. What was the amount he took as
loan?
Select one:
O a. RM 16400
O b. RM 18000
O c. RM 12000
o d. RM 12500

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1. Hanzalah took a loan of RMx from Bank ABC at interest rate of 4.5% compounded monthly. After 10 years, the amount to be paid is RM47,009.78. Find x.(RM30000)
1. Rahimah made equal payment of RM2,106.71 every two months for 8 years at 6% interest compounded every two months. Find the amount of loan taken by Rahimah. (RM80,000.12)
1. Hanzalah took a loan of RMY from Bank ABC at interest rate of 4.5% compounded monthly.After 10 years, the amount to be paid is RM47,009.78. Find Y.(RM30000)
1. Rahimah made equal payment of RM2,106.71 every two months for 8 years at 6% interest compounded every two months. Find the amount of loan taken by Rahimah. No use excel (RM80,000.12)
Miller invested P15,250 for 10 years and received P9,150 in simple interest. What was the rate of that investment? Nick borrowed P6000 at 9% simple interest fro 1 ½ years to repair his rice threshing-machine. Find the simple interest, future value, and equal monthly installments? Benjamin deposited P600 in a saving account that pays 4% simple interest. How long did it take for his deposit to earn an interest of P72. What amount was invested for 5 years at 2 ¼ % if it earned interest of P2,500? At what interest rate will P15,000 earn an interest of P2,500 at 1.8%?
Michael borrowed RM420,000 to buy an apartment in Damansara. His loan cost was 6% and he promised to repay the loan in 30 equal annual payments. How much is the principal outstanding after the first loan payment?
A debtor owes Ryan the following sums, due without interest: Php 1000 due at the end of 2 years and Php 2000 due at the end of 5 years. What equivalent single payment would Ryan be willing to accept at the end of 4 years, if money is worth (8% , m = 4) to him? a. Php 3 019.35 b. Php 3 706.22 c. Php 3 456.41 d. Php 3 927.58
Asante invested his $1000 in his account five years ago. The account yields interest of 20% per annum. How much is in the account now? • A. $2450 О B. $2400 О C. $2488 O D. $2300
Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%. What is the present value of the principal?
1. John invested Php1000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will John earn in 15 years? 2. Judy borrowed Php500 at an annual interest rate of 8%. At the end of the loan period she had to pay back Php530. How long was the loan for?
A Man borrows Php 2000 for 6 years at 8 %, to be repaid in a lump sum at the end of 6 years. At the end of 6 years, the Man renews the loan for the amount due plus Php 2000 more for 2 years at 8 %. What is most nearly the amount of the loan renewal? a. Php 5 506.54 b. Php 4 371.08 c. Php 3 173. 70 d. Php 2 871.61
Mr. Isidro borrowed P1,150,000.00 for the purchase of his car. If his monthly payment is P25,000.00 on a 5-year mortgage, what is the total amount of interest? a. 350 000 b. 360 000 c. 370 000 d. 380 000