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

Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…

A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

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 $14,000 at a rate of 9.7% and must repay it in 5 equal installments at the end…

A: Amount of interest payable in 1st year will be calculated on the total amount

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 take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of…

A: Given, The loan amount is $20,000 Term of loan is 5 years Nominal rate is 8% compounded monthly.

Q: A loan of $20,000 has a stated interest rate of 5 percent per year. Repayment of principal and all…

A: Loan Amount is $20,000 Interest rate is 5% per year. Time Period is 10 years.

Q: You borrowed $10000 with an interest rate of 12%. The loan is to be repaid in equal monthly payments…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: calculate the amount of payments

A: Payments: Payments are the amounts that are used to settle the borrowings from any financial or…

Q: a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is…

A: Investment at time 0 15000 investment at the end of 4 years 15000 Rate of Interest for 10 years…

Q: You borrow $5,000 at 10% per year and will pay off the loan in 3 equal annual payments starting 1…

A: Principal = 5000 r = 10% period = 3 years after 1 year of taking loan payments = 2010.57 This annual…

Q: You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business.…

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

Q: 1)If $1180 accumulates to $1566.75 in four years, six months compounded semi-annually, what is the…

A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…

Q: You have just borrowed $100,000 from a bank for a ten-year period. You will be making quarterly…

A: Time Period is 10 years Borrowed amount is $100,000 Interest rate is 8% per annum Compunded…

Q: 3. A 10,000 loan is taken out and the interest rate is 8 percent effective. Payments are made on the…

A: GIVEN, Loan is taken  - $10000            Interest rate  - 8% Paayment is to be completed in 10…

Q: Six years ago, you borrowed $200,000 for a ten-year period from BOB Bank at a stated interest rate…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: When interest is charged on the unrecovered balance, if you borrow $10,000 at 10% per year interest…

A: Whenever loan is taken, interest is required to be paid on that loan. That interest calculation can…

Q: Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal…

A: First let us calculate the 4 equal half yearly payments that need to be made. This can be calculated…

Q: You are repaying a $100,000.00 loan in monthly installment of $500.00. At the same time interest is…

A: Here, Loan Amount is $100,000 Monthly Instalment is $500 Effective Annual Rate is 5%

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

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

Q: Loans of $1600.00, $8300.00, and $12,100.00 are due now, in four years, and in seven years…

A: Loan due now = $ 1600 Loan due in 4 years = $ 8300 Loan due in 7 years = $ 12,100 Annual interest…

Q: John Johnson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 5.20 percent,…

A: In the given question we need to compute the effective annual interest rate (EAR) if the nominal…

Q: Saud borrowed $90,000 now. He will pay off the loan with 10 equal quarterly payments. The first…

A: To find the quarterly payment one can apply the formula in excel called PMT which calculates the…

Q: Jack has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=3.53%. He will make…

A: Given: Borrowed Amount = $1,000,000 Repayments at the start of the year : Year 1 = $83,000 Year 2 =…

Q: 20. $1,000 is deposited each month in an account paying 4.23% for 15 years. Then, $350 is deposited…

A: Note : As per our guidelines, we can only answer one question at once. Please post other question…

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed can be calculated with the help of present value of annuity function. The…

Q: You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two…

A: Installment is equal periodic payments a borrower pays in order to pay back his loan over a period…

Q: Assume you have secured a loan of $10,000 from a bank  which will be paid in one year. The fin bank…

A: Closing Balnace = Opening Balance + Interest @ 0.31% - Monthly Installments

Q: THE SHORTHOLDER BANK PAYS 5.60%, COMPUNDED DAILY (BASED ON 360 DAYS), ON A 9-MONTH CERTIFICATE OF…

A: Interest to be calculated should be on the amount of certificate of despising at which it was…

Q: I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Mr. Jimin borrowed money to CBA Bank for $211,000 for business development the chicken farm. The…

A: Given,  Loan Amount - 211,000 Interest rate = 9% (compounded monthly) Period - 12 years

Q: You borrowed $25,000 from a bank at an interest rate of 12%, compoundedmonthly. This loan will be…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: 2: An engineer wishes to purchase an $80 ayment of $20 000 and borrowing the remaining $60 000,…

A: In this question payment per month needs to be find out. Loan amount is $60,000 and it is to be paid…

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: A borrower had a loan of $70,000.00 at 6% compounded annually, with 8 annual payments. Suppose the…

A: The question is based on the concept of Loan & Amortization.

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: You borrow 10.000 USD for 4 years to be paid with equal installments. The rate is 10%  a-what is…

A: Remaining principal after a certain time period denotes the outstanding principal at the end of that…

Q: You are about to borrow $25,000 from a bank at an interest rate of 10% compounded annually. You are…

A: The schedule that shows the nominal amount of principal and interest that is paid in amortizing loan…

Q: With an annual effective interest rate of 6%, 500 USD is deposited into an account at the end of…

A: we will be using time value of money concepts and formula for this calcualtion Time value of money…

Q: Harper takes out a loan of $126,500,000, which is to be repaid by annual payme for 25 years. The…

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…

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.