Please no hand writing solution John wishes to take out a loan for $4000. Theinterest rate on this loan would be 12% per annumand Tom wishes to make equal monthly repayments,over two years starting one month after the loan istaken out. What would be the monthly repayment onthe loan to the nearest $?A $169.17B $188.29C) $181.82D$166.67 Sydney wishes to make an investment on a monthlybasis starting next month for two years. Thepayments into the fund would be made on the firstday of each month. The interest rate will be 1% permonth. Sydney needs a terminal value of $7000.What should be the monthly payments into the fundto the nearest $?A $285.46B $256.94C$302.68D $259.51

A loan is a financial arrangement in which one or more people, companies, or other entities lend…

John wishes to take out a loan for $4000. The interest rate on this loan would be 12% per annum and Tom wishes to make equal monthly repayments, over two years starting one month after the loan is taken out. What would be the monthly repayment on the loan to the nearest $? $160 17

John wishes to take out a loan for $4000. The interest rate on this loan would be 12% per annum and Tom wishes to make equal monthly repayments, over two years starting one month after the loan is taken out. What would be the monthly repayment on the loan to the nearest $? $160 17

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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Concept explainers

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.

Question

Please no hand writing solution

John wishes to take out a loan for $4000. The
interest rate on this loan would be 12% per annum
and Tom wishes to make equal monthly repayments,
over two years starting one month after the loan is
taken out. What would be the monthly repayment on
the loan to the nearest $?
A $169.17
B $188.29
C) $181.82
D
$166.67

Sydney wishes to make an investment on a monthly
basis starting next month for two years. The
payments into the fund would be made on the first
day of each month. The interest rate will be 1% per
month. Sydney needs a terminal value of $7000.
What should be the monthly payments into the fund
to the nearest $?
A $285.46
B $256.94
C
$302.68
D $259.51

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