Suppose you borrowed $14,000 at a rate of 9.7% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in the first year? Group of answer choices $1,428.12 $1,303.32 $1,211.50 $1,158.33 $1,358.00

Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…

A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously

Q: Suppose you borrowed $30,000 on a student loan at a rate of 8% and must repay itin three equal…

A: Loan Amount = $30,000 Interest Rate = 8% Time Period = 3 Years

Q: Suppose you borrowed $80,000 at a rate of 8.5% and must repay it in 5 equal installments at the end…

A: Given data; borrowed amount = $ 80,000 rate of interest = 8.5% number of payments = 5   First we…

Q: you borrow $2,700 at 8% simple interest per year for five years, how much will you have to repay at…

A: interest =p×r×t100where,r=rate of interestp=principal t=years

Q: f you deposit $1,000 now, $3,000 four years from now followed by five quarterly deposits decreasing…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: 1)You have taken out a loan of 3,000,000 to buy an apartment. The loan is an annuity loan of 30…

A: The loan is a facility provided by financial institution to buy an asset and repay it in future in…

Q: client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly.…

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

Q: Suppose that you have borowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: Loan Repayment Calculation of the loan repayment is some what complicated and need to know the fact…

Q: Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the…

A: Formula to calculate the future payments is P = F(P/F, i,n) Where F is the future accumulated…

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

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

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: The interest rate is 10% compounded annually. What percentage of the 2nd payment will be interests?

A: In any loan, the equated instalment repayment will include the principal and the interest.  Interest…

Q: How much will you have saved at the end of 15 years.

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Suppose you borrowed $37,000 at a rate of 9.0% and must repay it in 4 equal installments at the end…

A:

Q: Imagine that you deposit \$6,000$6,000 a year, starting one year from today, for four years into a…

A: We need to use future value of ordinary annuity(payment due at end of period) formula to get money…

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same…

A: Future value (FV) = $ 20000 Number of annual deposits (n) = 5 Real rate = 4% Inflation rate = 3%…

Q: What is the amount of each payment?

A: NOTE:  As per our policy, we only answer one question when many questions are provided. Therefore,…

Q: f you borrowed $12,000 for 8 months at 7% annual simple interest, how much must you repay at the end…

A: Interest = Principal * Time * Rate

Q: Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: The question is based on the concept to calculate principal and interest on the loan amount in…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

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

Q: Suppose you borrowed $15,000 at a rate of 10% and must repay it in 5 equal payments at the end of…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: how much do you need to repay for your yearly instalment if you had borrowed $20,000 at 10% for 5…

A: Year installment will be calculated by amount of borrowings divided by Present value of an ordinary…

Q: Use excel plz and show working You entered into a mortgage agreement to borrow $100,000 at an…

A: Information: a) The annual payments can be computed using PMT function in excel. b) The Principal…

Q: Suppose an investor deposits $28,000 into a savings account for 4 years at 6.75% interest. Find the…

A: Dear student as per answering guideline we can answer only three sub parts if a question have more…

Q: Suppose that you plan to retire in 40 years. You put 1000 dollars in a bank account which sa per…

A: Effective rate of interest is the interest rate that is actually earned or paid. Effective rate of…

Q: Ahmad borrowed $15,000 now and it is to be repaid by equal end-of-quarter installments for 5 years…

A: Quarterly payment is calculated by present value of annuity formula for periodic repayments. Present…

Q: 1. If 5,000 earns 86.00 interest in 15 months, how much is the rate of  interest?

A: 1) Assuming simple interest = r Principal = P = 5000 Interest = I = 86 n = 15 months = 1.25 years

Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…

A: The time value of money refers to the concept that states that the money present today is more…

Q: you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal…

A: Given:

Q: Suppose you borrowed $15.000 at a rate of 11.1% and must repay it in 5 equal installments at the end…

A: Interest is the amount given by the borrower of money to the lender of money. Interest is usually…

Q: If you deposit $500 every 6 months for 7 years at an interest rate 20% compounded quarterly, how…

A: The amount at the end of 7 years is the future value of the semiannual deposits.

Q: Suppose you borrowed $35,000 at a rate of 8.1% and must repay it in 4 equal installments at the end…

A: Loan amount (LV) = $35000 Interest rate (i) = 8.1% Number of annual payments (n) = 4

Q: Assume that you borrow 20million JPY from some bank repay 80,000 JPY monthly under the plan of total…

A: Here, To Find: Case-I: 1. Total number of months =? 2. Completed years =? 3. Remaining months =?…

Q: You have borrowed $60,000 at an interest rate of10.5%. Equal payments will be made over a…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: If you invest $2,589.70 in an account earning an annual interest rate of 2.539% compounded monthiy,…

A: In order to achieve a goal in future, an investment can be made at present date so that when the…

Q: How large must each annual payment be if the loan is for $20,000? Assume that the interest rate…

A: Excel Spreadsheet:

Q: 1) Five years ago, you borrowed $250,000 for a ten-year period at a fixed interest rate of 9% p.a.…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: ffering MACY’S has a six-year term deposit that will pay 7% per annum compounded quarterly.  If…

A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…

Q: You are buying a house for $200,000.00 with a downpayment of $40,000.00. The loan will be paid back…

A: An amortization table is a table that helps to compute the periodic payment, interest paid,…

Q: 4. You plan to deposit P2, 500 in the bank now and another P2, 500 after 2 years. After four years…

A: Deposit in year n = Dn Withdrawal in year n = Wn D0 = P 2500 D2 = P 2500 W6 = P 6500 We need to find…

Q: Ahmad borrowed $15,000 now and it is to be repaid by equal end-of-quarter installments for 5 years…

A: The periodic payment refers to the equivalent annual cost made towards the acquisition of an asset…

Q: Suppose that you invest $20 000 in an account paying 8% interest. You plan to withdraw $2000 at the…

A: Investment = $ 20,000 Annual interest rate = 8% Annual withdrawal = $ 2000 Period = 15 Years

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.