Andy borrowed P9000 from Randy today and P12000 two years after and made a partial payment of P7000 one year after. It was agreed that the balance of the loan would be amortized by two payments on the 4th and 5th year from the start of transaction, the second being 50% larger than the first, if the interest rate is 12%, what is the amount of each payment?

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments…

A: Calculate the interest rate implicit in the agreement.

Q: 10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her…

A: the amount of each of the 12 payments. given: P10,000 bank loan in 10 equal payments 10% effective…

Q: Greg owes two debt payments – a payment of $5316 that was due in 13 months ago and a payment of…

A: The date at which values of all payments are calculated by compounding past and discounting future…

Q: Nine  years  from  now,  Sam  wants  to  have  an  amount  available  to  deposit  into  an  account…

A: ANSWER GIVEN ON THE NEXT SHEET

Q: Ten years ago, Mike took out a 20-year $110, 000 loan at an annual effective rate of interest of 5%.…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: A man buys a house for $350,000. He makes a $150,000 down payment and amortizes The rest of the…

A: Price of house = $350,000 Down payment = $150,000 Mortgage amount = $350,000 -$150,000 Mortgage…

Q: Carl has purchased an annuity to be paid at the end of each month for 20 years at an effective…

A: Present Value of Annuity = 200,000 USD YEars = 20 Terms(n) = 20*12 = 240 Rate of Interest(r)  =4%/12…

Q: he percentage rounded to two decimal places, of the total payments made the first two years that…

A: Amortization Schedule: It is a schedule consisting of the loan periodic payments, interest…

Q: Riley takes out a loan L of 3000 dollars to buy a car at an effective annual rate of interest of 6%.…

A: The mortgage is the obligation to pay back the debt amount taken as a loan for satisfying the need…

Q: Edward borrowed an amount to his friend and promised to pay the principal amount and accumulated…

A: Let the amount borrowed be "x" Simple rate = 15.118% Amount paid at the end of 3 years = P15.855.…

Q: Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual…

A: Borrowed amount (PV) = 500,000 Interest rate (i) = 15% Period (t) = 18 Years

Q: Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750,…

A: Given Loan amount = $12000 Loan repayment = $18750

Q: Greg owns two debt payments - a payment of $5338 that was due in 11 months ago and a payment of…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: Don takes out a 10-year loan of L, which he repays with annual payments at the end of each year…

A: Answer:

Q: Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual…

A: Loan Amount P5,00,000 Loan period  18 Interest Rate  15% Present value of an ordinary annuity…

Q: Kyle was supposed to pay Erin $6,700 6 months ago and $720 in 5 months. If he wants to repay this…

A:

Q: Liam loaned an amount of 15,581 and he will pay it with an amount of 25,501 after 9 years. What is…

A:

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments…

A: Compute the amount of the annual installment. Amount to be borrowed is $3,000, Rate of interest is…

Q: Louie borrowed $2,000 from Phil. Under this agreement, Louie would repay with $1,300 at t = 1 and…

A: Borrowing at time 0 = 2000 Repayment 1 at time 1 = 1300 Repayment 2 at time 4 = 1700

Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: usinessman borrowed P300,000 with interest at the rate of 6% compounded annually. He agrees to…

A: The annual payment depends on the interest rate and original amount of loan and deferred period of…

Q: Renata converted the payment of her ₱50,000 debt to five (5) equal payments at the end of each year.…

A: The time value of money concepts involves two major methods such as present value and future value…

Q: Gloria borrows P100,000 from a lending institution which changes an interest rate of 16% compounded…

A: Formula for finding Annual Payment =[Interest rate*Borrowed Amount]/[{1-((1+Interest rate)^(-Number…

Q: Ms.Sue was selling a house for a cash price of 5 million pesos but agreed to have it paid on monthly…

A: House cash price (CP) = $ 5,000,000 Period = 5 Years Total number of monthly payments (m) = 5*12 =…

Q: Jake borrowed P40,000 from Mike. He promised to pay the principal amount plus the interest at the…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) rs will it take…

A: Loan Amount = $100,000 Interest Rate = 4% Payment in 1 Year = $10,000

Q: three years ago , the Kennedys purchased a house and took out a mortgage of $ 1,000,000 from the…

A: Mortgage: It is the loan that is granted by the lender to the borrower for purchasing a real estate…

Q: Mr. Bean borrowed P600,000 from Maligaya Lending Corp. for 6 years at 12%. At the end of 6 years, it…

A: As per time value of money concept, a sum of amount invested today will have more value in the…

Q: Bill borrows 20000 for 20 years at an annual effective interest rate of 5%. He can repay this loan…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Mr. Ramos buys a house and lot that cost P450,000. He pays P75,000 as down payment and promises to…

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

Q: Cassie paid P68 000 to a money lending company after one and a half years to fulfill er loan that…

A: We need to use RATE function in excel to calculate rate of interest Formula is…

Q: Juan owes $10,000 to a friend who is charging him simple interest of 3.50% p.a. He is required to…

A: Loan amount = $10,000 Simple interest rate = 0.035 Loan period = 4 months Lets assume equal payment…

Q: ive years ago, Ms. Halliday received a mortgage loan from the Bank of Money for $60,000 at 7.8%…

A: Dear student, we need to use pv,fv.pmt functions in excel to solve this problem. You should apply…

Q: Muhammad borrowed $ 5,000 from a bank 7% annual interest, provided that Muhammad pays the loan in…

A: Annual payments for the loan is calculated y present value of annuity formula. Total interest on…

Q: If Martha borrowed $22,000 from Wachovia Bank at 7.5 percent interest for 3 years, the principal…

A: Face value of loan will be present value of loan.

Q: Carl borrowed P101,466 from his friend to pay for remodeling work on his house. He repaid the loan…

A: Loan amount (L) = P 101466 Duration (n) = 20 months 12 days = 20.4 months Simple interest rate (r) =…

Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…

A: We can solve this in excel using the "goal seek" function. First of all make a loan amortization…

Q: Mr. Green had a housing loan amounting to P2.664,676, and it was to be amortized by a group of 30…

A: Here, Loan Amount is P2,664,676 Time Period is 30 years Initial Payment at the end of First year is…

Q: An investor had a bank loan to help him in his business. The deal with the bank states that the loan…

A: The value which denotes the present value of some future payments or future value is known as…

Q: Ryan must pay off a loan of $3500 in 5 years. Use the appropriate formula to find the amortization…

A: Rate = 12%/2 = 6% TIme = 5*2 =10 period   Using the excel formula of PMT

Q: Jane bought a $3,000 audio system and agreed to pay for the purchase by making nine equal annual…

A:

Q: Jane bought an audio system and agreed to pay for the purchase by making four equal annual…

A: The total cash payments of $4,200 are the sum of the total amount of installment paid in 4 years,…

Q: Dandil owns two debt  payments - a payment of $5049 that was due today and a payment of 1906 due in…

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: Ann got a 15 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 7% compounded…

A: Here, Present value = $1,500,000 Number of years = 15 years Rate of interest = 7% compounded monthly…

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.