Your parents can take out a federal Direct Plus loan to pay for the total remaining cost of your undergraduate education, after any other financial aid (such as federal direct student loan). The simple interest rate was 6.84% for 2015-2016. The standard repayment plan is fixed monthly payments over 10 years, and your parents can elect to defer the start of repayment until six months after you graduate. 1. Suppose that your parents take out a PLUS loan on your behalf on September 1 before your senior year for $10,000, at the rates mentioned above, and begin paying it back six months after you graduate on June 1. How much is their monthly payment.

Q: Melinda opened a savings account for her daughter on ? day she depositing $1,000: Each year on her b...

A: Annual deposit (A) = $1000 Number of deposits (n) = 22 r = 9.5%

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Q: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 % co...

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Q: Determine the future worth of P6000 at exact simple interest rate of 11% from January 12, to Oct. 5,...

A: Present value (PV) = P6000 Interest rate (r) = 11% Period (d) = 267 days Days in a year = 366

Q: Using the given situations, compute for the future value at the end of term of each scenario. 1. You...

A: Amount invested (A) = Php 18000 r = 6% n = 2 years  

Q: Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon h...

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A: Step 1You obtain the face amount of the bond and any interests that have accumulated since the last ...

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Q: Leah received a loan of $35,000 at 3.5% compounded quarterly. She had to make payments at the end of...

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Q: What is the project's IRR?

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Q: how much will a deposit of P2, 500 in 12 years

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Q: the cash flows for this project be?

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A: Current stock price = 125.94 Exercise price X =125 June Put option Price (X =125) = 11.50  

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Q: If you invest your P3,000 every year at 4% interest rate, how many months does it take to be worth P...

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A: Market efficiency Market efficiency is a characteristic of a market according to which stock price r...

Q: L0 percent coupon bond sells at par. Two years from now, the required retur is 8 percent. What is th...

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Q: Check my work foreseeable future. Company B pays corporate taxes at investment. Suppose the opportun...

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Q: What is the equivalent present worth of the costs

A: Present value (PV) of growing annuity refers to an annuity which shows the current value of all the ...

Q: I borrow a 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual payme...

A: Loan amount (PV) = 500,000 Interest rate (r) = 15% Number of annual payments (n) = 18

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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.