Q: Write an equation that models the relationship between the amounts loaned from each bank.
A: Let, Let x represent the amount of money loaned at 3%. Let y represent the amount loaned at 4%.…
Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…
A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…
Q: If a borrower repays RM 11430 at the end of two years, which includes RM 2430 interest at a rate of…
A: Repayment amount = RM 11430 Interest amount = RM 2430 Interest rate = 13.5%
Q: A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit to…
A: Here, Cost of Motor Vehicle is RM20,000 Immediate Deposit is 10% Immediate Deposit Amount will be:…
Q: a man borrowed P2000.000 from a bank and promised to pay the amount for 1 year. He received only the…
A: We can calculate interest rate by using simple interest formula Simple interest =Principal*Rate*Time
Q: Paid $4,800 on the Trust Company loan. This represents an interest of $935 and the rest reduces the…
A: Given: Loan paid = $4,800 Interest = $935
Q: A newspaper advertisement offers a $9,000 car for nothing down and 36 easy monthly payments of…
A: APR or Annual Percentage Rate is the interest rate that is charged to borrowers and paid to…
Q: Mr. Smith borrowed $10,000 from Mr. Black at 1% per day. The loan must be repaid in two weeks' time.…
A: Interest payments on a loan are the net amount of extra expense that a borrower has to make on a…
Q: Calculate the loan amount on a purchase having a cash price of $47,900 with a down payment of…
A: Down Payment: The down payment is the portion of the purchase price that you pay out-of-pocket (as…
Q: Would you rather have a savings account that pays 5% interest compounded semiannually or one that…
A: Let assume $1000 invested for 1 years
Q: Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid is…
A: Simple interest is a way to calculate interest amount on a loan. This way can be used when the…
Q: Bank Muscat reported pretax income of OMR 800,000 along with a loan loss provision of OMR 80,000 and…
A: Loan loss provision coverage ratio indicates the level of protection of the bank in respect to…
Q: Jassim is a Credit Officer with Riffa Bank and is working on structuring a loan facility for his…
A: Rate of return is expressed in percentage term that refers to the minimum return on the amount…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Information Provided: Balance = $4000 Rate = 16% Payment = $2500 Days it take for payment = 10 Days
Q: Assume a bank has the following balance sheet. Determine the 2-year GAP. Asset Amount Liability…
A: Calculation of 2-year Gap is shown below: Hence, GAP between risk sensitive assets and risk…
Q: Use the ordinary interest method to compute the time (in days) for the loan. Round your answer up to…
A: Interest is the amount charged by bank in consideration of advancing loan to its borrowers. It is…
Q: 1. A financing company charges 1.5% per month on a loan. Find the equivalent effective rate of…
A: The effective annual rate of interest (EAR) is calculated as the actual rate of return earned after…
Q: A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment…
A: The amount financed can be calculated as cost of asset less down payment.
Q: Loan worksheet to complete the loan amortization table
A: Loan amortization is the schedule that shows the detailed re-payment schedule of interest and…
Q: Mark applied for a business loan of Php 100,000 to be amortized by equal payments at 4 years at 10%…
A: Here, Loan Amount is Php 100,000 Time Period is 4 years Interest Rate is 10% Compounding period is…
Q: The financial officer of Toys and Noise arranges a loan of $8,500, at 8.5% interest, for 35 months.…
A: Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple…
Q: a) What is the finance charge (in $) on the loan? $ 1,559.68 Incorrect: Your answer is incorrect.…
A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…
Q: By using the table below , you should state whether the following statements are correct or not.…
A: The accounting equation is the base of the double-entry accounting system and a business…
Q: Jefferson bank made a loan at 7 interest for 238 days. If the amount of interest was $300.81 use the…
A: Interests expense refers to the amount that is charged on the borrowed money by the lender as the…
Q: Directions: Identify if the problem involves simple interest or compound interest. Then, solve the…
A: The simple interest implies the interest levied on the principal amount only. The formula of the…
Q: You are taking out a new loan of $140,000 that includes an origination fee of 4.5%. How much money…
A: Given, New loan = $140,000 Origination fees = 4.5%
Q: In the following balance sheet, Loan A(8%, 3 year)= $150 Deposit A(5%, 2 years)=$250Loan B(11%, 4…
A: Net interest income refers to point of difference between revenues generated by interest-bearing…
Q: Alex has a charge account at Diamond Jewelers, which uses the unpaid-balance method of computing…
A: NOTE: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: loan of 15700 was charged a simple discount rate of 4.2%. If the proceeds received were 15463.72,…
A: find the amount of bank discount.:: Bank discount=Proceeds -Maturity value=$15463.72-$15700=238.28$…
Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…
A: In this question we need to find the amount of principal borrowed if amount of interest was $930.41…
Q: A lending company charged its client P2,750 on a loan of P15,800 for 2 years and 3 months. What…
A: The rate of interest charged can be calculated with the help of simple interest function
Q: Vaughn Manufacturing assigns $7300000 of its accounts receivables as collateral for a $2.64 million…
A: A business can use its accounts receivables asset as collateral for a loan. A loan that has a…
Q: A house has been sold for $180,000. The mortgage company requires a 25% down payment and charges a…
A: House Price = 180,000 Down Payment = 25%*House Price Down Payment = 25%*180,000 Down Payment =…
Q: Using the unpaid balance method, find the current month's finance charge on a credit card account…
A: In credit card there are financial charges based on monthly basis.
Q: The interest on a loan of R2 000 to be repaid
A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…
Q: A $42,000 loan is repaid with semiannual payments of $5,000. What is the $4,125.09 $4.227.79…
A: Here, To Find: Size of the last payment =?
Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400, and the cash…
A: The calculation of actual interest rate on the note is shown hereunder : Interest cost RO 400 Cash…
Q: A person you trust foresees the need for a loan and suggests that you loan them $2,000 at the end of…
A: Loan is an agreement between lender and borrower. Lender agrees to provide funds t borrower at…
Q: Consider a compounding loan plan where the amounts owed at EOYS 3 and 4 are $5,800 and $6.264,…
A: First, we will calculate the compounding rate
Q: Find the amount of interest (in $) on a loan of $6,000, at 5% interest, for 60 days using the exact…
A: Exact interest rate is basically the method in which exact number of days are taken to calculate the…
Q: How much would one pay in points on a $145,000 loan if 2 points were charged? a. $2,900 b. $2,000…
A: The amount which is paid optionally while taking a loan, especially on a home loan is called points…
Q: A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit to…
A: Given information: Cost of vehicle : RM 20,000 Down payment : 10% Interest expense : RM 2,270.92
Q: A man borrowed Php 6,000 from a bank and agreed to pay the loan at the end of 10 months. The bank…
A: An interest rate is the percentage of a loaned value that a lender owes the borrower as interest,…
Q: (Refer to this word problem The accumulated value of a 3-month loan of P5,000 is P5,085.'…
A: The Calculation of the interest and principal as follows: Loan amount = PHP 5000 Interest Rate =…
Q: Maris Bank has analyzed the accounts receivable of Anthony Software, Inc. The bank has chosen eight…
A: Calculation of maximum amount lend and effective annual rate of anthony softwere are as follows.
Q: A man loans $10,000, part at 6% annual interest and the rest at 11%. The annual total income from…
A: The various Loans can be taken on various interest rates. This is done to maintain the total…
Q: Slingerland borrowed $7,000 on July 20 at 11% interest. If the loan was due on October 15, what was…
A: Given information : Borrowed amount = $7000 Borrowed date = July 20 Rate of interest = 11% Due date…
Q: Mark takes out a loan for $20,000. The loan has 2% interest rate and a 2.5% APR. Complete the…
A: The sum of the interest plus fees on this loan = Loan Amount * APR
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- ank A has offered you a loan worth $20,000 for 180 days whereas bank B offered you the same loan but as a compensating balance loan. Which offer would you take and why, explain Why could have bank B offered a compensating balance loan.\A man loans $4,000 at one interest rate and $5,000 at a 1% greater rate. The $5,000 loan earns $110 more per year than the $4,000 loan earns. Determine the following: The interest rates. Explain the concepts/principles that were considered and the factors that affected the condition of item (a)A bank makes a loan of $1,000,000 at a rate of 6% p.a. It also requires a compensating balance of 5%. What is the effective cost to the borrower?
- Hagar Company's bank requires a compensating balance of 10% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?A savings and loan charges 2.075 points for a home buyer to obtain a loan of $255,000. To calculate the discount points, what value should be multiplied by the loan amount? Also, calculate the discount points.How much would one pay in points on a $145,000 loan if 2 points were charged? a. $2,900 b. $2,000 c. $2,842 d. $2,320
- Company, a financial institution, allows Integrity Company to borrow P1,300,000 with 8% interest. Honesty would require a compensating balance of 8% of the face value of the loan.What is the effective interest rate of the loan (round off your answer to two decimal places)?A bank is offering a loan of $20,000 with an interest rate of 9%, payable with monthly payments over a 4-year period. a. Calculate the monthly payment required to repay the loan. b. This bank also charges a loan fee of 4% of the amount of the loan, payable at the time of the closing of the loan (that is, at the time the borrower receives the money). What effective interest rate is the bank charging?A customer bought a used car for $24,650. The customer’s down payment was $6,000 and the repayment will be $414 per month, for 48 months. What are the following: (Show your calculations) a) Amount financed?b) Total installment price? c) Finance charge?
- Please do not answer this question in excel thank you in advance. A loan of $13,000 at 5.65% annually requires $2,938 interest. For how long is the money borrowed?Suppose you purchase a home and secure a loan for $165,000. If the bank charges a fee of 3 points, what is the charge for points?A motor vehicle which costs RM20,000 was bought on credit terms, with payment of 10% as deposit to be made immediately and the balance to be paid in one lump sum 6 months later. Total interest expense will be RM 2,270.92.(i) With loan amortization schedule, show the total amount be paid for the vehicle.