11. Paul Koski deposited $21,000 in a savings account on April 1 and then deposited an additional $3500 in the account on May 7. Find the balance on June 30 assuming an interest rate of 3-% compounded daily.

Q: a. What is the interest rate per month that is equivalent to 2.25% p.a.? %Round to two decimal…

A: Simple interest is a method of calculating the interest on the original amount of loan or deposit.…

Q: 7. On April 1, Michael Reeves deposited a refund check for $240.85 in a savings account at Northern…

A: Simple interest is concept where the interest is never capitalized to the original loan/investment…

Q: A local branch of Gamestop, Inc., deposited $12,500 in a savings account on July 3 and then…

A: Number of day from 3 July to 1 October = 28+ 31+30 = 90 Number of days from 5 August to 1 October =…

Q: 29. A man deposits P200 at the beginning of each month in a bank credits savings account with 5%…

A: We need to use future value of annuity due formula to calculate saving amount at the end of 4 years.…

Q: On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her…

A: The question is based on the concept of discounting notes. Notes are a debt financial arrangement…

Q: Bill deposits $100 into a bank account. His account is credited at a nominal discount rate of 4%…

A: Interest credited to the account of Bill and Cynthia at the end of the year will be $4 and $16…

Q: Bank A offers accounts that pay 5% compounded daily and Bank B offers accounts that pay 12%…

A: Particulars Bank A Bank B Deposit Amount 12000 12000 Rate of Interest 5% 12% Compounding…

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

A: Formula; Total Future Amount in savings= Principal Amount (1+r100) Given: Principal Amount,…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

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: Keith deposits 10,000 into a bank account at time 0. The bank credits interest at an annual nominal…

A: Given: Principal = 10,000 Interest rate annual = i% Semi-annual rate = i%/2 For simplicity let us…

Q: 15. Paul Anders borrowed $15,000 at 8% simple interest for 240 days on May 18. The bank later sold…

A: Given: Principal=$15,000Interest rate=8%Discont rate=9%Time=240 days

Q: "Ten years ago, when Nigel was still a college student, he deposited 10,000 in a bank. The bank's…

A: Deposit amount (P) = 10,000 Period = 10 Years Quarterly period (n) = 10*4 = 40 Interest rate = 2%…

Q: Vincent deposited $1,650 in a savings account that earns 3.5%interest compounded daily for 90 days.…

A: Maturity value refers to the total value that will be paid to the investor or depositor at the end…

Q: 3. Adrianne Castini deposited $750 in a new savings account at Bradington Savings and Loan…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: 4. Peter Sarnoff deposited $1000 in a new savings account at First National Bank. He made no other…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: A credit card holder purchased an item P6,000 on credit with a monthly interest rate of 3% and 5%…

A: To find the remaining balance we need to subtract the amount that is paid and it will be paid on the…

Q: A man deposited ₱5,000 in a bank at a rate of 10% per annum for 6months and 25days. Find the…

A: Simple interest is the type of interests that is calculated on the original amount invested, it will…

Q: On April 13, Thomas Ash deposited $2,500 in a passbook savings account at 3.5% interest compounded…

A: Given: Principal amount =$2500Interest rate =3.5% No. of days between April 13 to August 5 =115 days

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: The 150 days from November  1 will expire on March 31. Thetefore, Note will expire on March 31 next…

Q: 17. In January, Joanna deposited $250 into her savings account. In February, she deposited an…

A: Solution:- When an amount is invested somewhere, it earns interest.

Q: On May 1, Cleveland Livingston opened a savings account that paid 3.5% interest at Fulton Savings…

A: Saving account: A savings account is an interest-bearing deposit account with a bank or other…

Q: On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly…

A: Quaterly deposit in investment fund is $400 Interest rate of quaterly fund is 4.6% payable quaterly…

Q: 3. Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay…

A: Simple interest is calculated using only the principal balance of the loan. Generally, simple…

Q: David makes a sequence of 35 monthly deposits of 645 dollars each into an account paying interest…

A: Nominal rate of interest is the rate of interest expressed in percentage is the amount that is paid…

Q: Suppose a savings account pays 7% annual interest with interest compounded daily (assume there are…

A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days…

Q: 6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at…

A: Deposit 1 (D1) = $5000 on day 0 Deposit 2 (D2) = $2000 at day 10 Deposit 3 (D3) = $8000 at day 24 We…

Q: (a) Bill made deposits of $200 at the beginning of each month into a savings account for 12 years…

A: In compound interest, the interest earned is reinvested because of which we earn even more interest…

Q: A- A person deposited $40,000 at a bank at an interest rate of 16% compounded quarterly. Find the…

A: Deposited amount= $40,000 Interest rate (r)= 16% Compounding Frequency (n)= quarterly Effective Rate…

Q: Determine the accumulated amount in the account just after the last deposit.

A: The first month deposit is 4500 the formula for monthly compounding is  CI = P(1 + (r/12) )12t - P…

Q: 1. Tim deposits P750 every end of 3 months in an account paying 5% interest compounded quarterly.…

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

Q: On August 19, Siobhan O’Sullivan started an ordinary annuity. She arranged to have $150 deducted…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: An individual makes five deposits that increase uniformly by Php. 300.00 every month in a saving…

A: Number of deposits = 5 Annual increase in deposits = Php 300.00 First deposit = Php. 4500.00…

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: Notes Payable: Known as long-term obligations, notes payable represent the money a firm owes to its…

Q: MJ deposited 1,000, 1,500, and $2,000 at the end of the 2nd year, 3rd year and 4th year,…

A: The future value of deposits refers to the sum of the value of the deposits with the interest earned…

Q: Ann deposits $500 at the end of each month into her bank savings account. The bank paid 8% nominal…

A: The future value of certain recurring payments at a specified certain intervals is the future sum at…

Q: Who has a bigger balance at the end of 7 years?

A: Time value of money(TVM) is the money worth today will be more than that of the money received for…

Q: 14.Mariah invested $10,000 in a bank certificate of deposit at a rate of 5% interest compounded…

A: Investment (PV) = $10,000 Interest rate (r) = 5% Period (n) = 3 Years

Q: Nabil's bank pays 5% interest compounded quarterly. The account balance started out at $4,526. What…

A: Here in this question, we are required to calculate balance in bank account after 2 quarters. In…

Q: An individual makes five annual deposits of P 2,000 in a savings account  that pays interest at a…

A: Annual deposit = 2,000 Interest Rate = 4% Period = 5 Years    After 5 year the interest rate is…

Q: (a) On April 13, Thomas Ash deposited $2,400 in a passbook savings account at 3.5% interest…

A: Compound Amount = Principal ×1+Rate365Time period Part a: Principal = $2,400 Interest rate = 3.5%…

Q: Determine the simple interest and the accumulated amount on ₱4,000.00 deposited in a bank at a rate…

A: Given Information: Interest Rate = 8% Time Period of loan = 11 months and 15 days Principal amount =…

Q: On August 1, 20A Mr. Vincent Clarin, owner of Debonaire Salon borrowed money from Sofia Goden…

A: Formula: Maturity value = Principal amount + Interest amount

Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1.  The note had a 4 percent…

A: Note payable: Note payable refers to the liability of the business, as business borrow money against…

Q: Rita deposited $8,000 in a savings account that provides for interest at the rate of 16% compounded…

A: Compound Interest=(A)=P1+rnntWhere,P= the principal, amount investedA= the new balancet= the…

Q: 5. On June 1, Bertha Hammond deposited $545 in a savings account at Metro Sav- ings and Loan…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Lee Holmes deposited $15,300 in a new savings account at 8% interest compounded semiannually. At the…

A: Given Information: Amount deposited - $15,300 Rate of interest  - 8% compounded semiannually Amount…

Q: Suppose Eli deposits $1,000 into a savings account. The savings account earns 4.2% compounded…

A: Annual Percentage Yield(APY) refers to the annual interest rate earned on the investment when the…

Q: On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year  compounded annually.…

A: future value = present value *(1+ rate) value at the end of 1st year = 1000 * 1.08 = 1080 amount…

Q: Crystal deposited $16,000 in a new savings account at 7% interest compounded semiannually. At the…

A: Future value is worth of an account at future date where amount gets added with interest with the…

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.