If you make a late payment on a 0% interest credit card, you're responsible for paying the entire interest from the time you opened the card. True. False.
Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…
A: The interest rate is the return that an individual receives from the financial asset in the economy.…
Q: An annuity offers to pay £8,200 per year for 20 years, and the nominal annual bank interest rate is…
A: Given: The amount of annuity = £8,200 per year Years = 20 The rate of interest is = 6% compounded…
Q: Karen Wilson thinks that she needs to borrow $7,600 for 2 She doesn’t have a very good credit…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Current Financial Institution Loan Type Terms/Length Rate Suntrust (Truist) Bank…
A: Financial institutions provides loans and credit card services and provide different kind of loan…
Q: In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years.…
A: Given information, Future value (F)= ₱400,000 Interest rate (r)= 2% Compounding period (m)= 4…
Q: A business man borrowed P 200,000 and agrees to pay P 47,719.73 annually for X years at the rate of…
A: Given Borrowed amount P=200,000 Annual payment A= 47,719.73 number of years =X rate of interest =…
Q: Write the formula developed for calculating compound interest?
A: Compound interest refers to the interest calculated on the principle amount, thus increasing the…
Q: A bank gives a loan to a company to purchase an equipment worth 10,00,000 dollars at an interest…
A: Loan amount to purchase the equipment = $1000000 Interest rate = 18% Time period for the the…
Q: How long will it take any sum to double itself with an 11% interest rate compounded continuously?
A: Suppose the present value of sum be P and future value of the sum is A
Q: When selecting a financial institution, you should consider: (select all that apply) convenience,…
A: Financial Institution is an institution such as central banks, commercial Banks, credit unions etc.…
Q: A Bank offers you a 250,000 pesos, 3 years and 6 months term loan at 4. 78 percent annual interest.…
A: PV = 250,000 N = 42 Months r = 0.0478/12 = 0.0039833
Q: If the price of a one year T-Bill is $2,860 and the value at maturity is $3,000, what would be the…
A: Yield to maturity is given as = (Face value/current value)1/years to maturity - 1 Face value= $3000…
Q: How much money do you need to deposit in a bank each month if you are planning to have $5000 in four…
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Q: Bank A charges 12% compounded monthly on its business loan. Bank B charges 11.8% compounded daily.…
A: The best bank to borrow money can be selected based on the following method.
Q: Distinguish between Simple interest and Compound Interest?
A: Interest rate refers to the percentage of a principal amount charged by a lender to a borrower.
Q: A credit plan charges interest rate of 30% compounded monthly. Find its effective rate.
A: Given information, Interest rate: 30% Compounded period: 12 (monthly) To find: effective rate
Q: You plan to purchase an $130,000 house using a 30-year mortgage obtained from your local bank. The…
A: A mortgage payment is typically made up of four components: principal, interest, taxes and…
Q: why is it critical for consumers to truly understand the effect of interest on their credit cards?
A: A credit card is a payment card that enables the owner to borrow funds to pay for purchases. Since…
Q: Given the situation , choose the correct formula to solve the problem: A personal account earmarked…
A: When a series of payments(P) are received by an individual at equal/regular time intervals, he is…
Q: How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5%…
A: Compound interest rate is addition to the interest of interest. It can be applicable both loan and…
Q: A principal of $20,000 is invested at 6% for 10 years. Determine its future value if the interest…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Mr. Edwards borrowed P 200,000 and agrees to pay P X annually for 5 years at the rate of 6%…
A: Amount Borrowed = 200000 Annual Payment = x n = 5 r = 6%
Q: It is the interest paid in advance. a. simple interest b. perpetuity c. compound interest d.…
A: Interest is the monetary payment, it is made for the privilege of borrowing money. The amount of…
Q: A $10,000 bond with a coupon rate of 1% and a yield of 2% will pay a yearly interest amount of:
A: Given the bond price = $10000 Coupon rate = 1% Yield = 2%
Q: How can we calculating effective Interest Rates based on Payment Periods?
A: The effective annual interest rate is the interest rate on investment or return on a savings account…
Q: The Weidmans want to save $35,000 in 4 years for a down payment on a house. If they make monthly…
A: Interest is an amount of payment that is generally paid on a deposit or lent money by the financial…
Q: Explain Borrowed-Funds Concept?
A: A firm can raise capital to finance its investment projects via borrowing or equity. Borrowed…
Q: an interest-bearing security that promises to pay a stated amount on the maturity and regular…
A: Interest-bearing securities are a type of financial instrument in which you effectively lend money…
Q: Differentiate between Simple interest and Compound interest?
A: In economics, interests are the costs of borrowing money. The economic agent who is borrowing the…
Q: What is Compound interest?
A: Simple Interest: The simple interest is the interest that is paid on the principal amount. For…
Q: A businessman borrowed P 200,000 and agrees to pay P 47,720 annually for x years at the rate of 6%…
A: The formula to compute continuously compounded interest is as follows: P(t)=P0ert where P(t) = Value…
Q: You have three choices in placing your Money in a bank account. V Bank A pays 7.25% compounded…
A: Let's calculate the interest on the $1000 and check which bank has offered greater interest. Thus, a…
Q: differences between islamic and conventional wealth management instruments
A: Ans in step 2
Q: Which is the most desirable form of a lump-sum settlement?
A: A lump sum settlement implies that the person who claims will receive the whole amount in a single…
Q: What is the maturity date of a loan taken out on September 9, 1998 for 125 days?
A: The loan is taken out on September 9, 1998, for 125 days So maturity date of this loan will be 125…
Q: Sarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the…
A: (a) The individual wants to purchase the new car and the cost of the car is given to be $15,000 and…
Q: True or False: If you purchase a gift card electronically through a site such as Plastic Jungle, you…
A: A market is a place where the exchange of goods and services takes place between the buyers and…
Q: Write the Summary of Compound-Interest Formulas?
A: Answer - Compound-Interest Formula - Compound interest formula helps to calculate the total return…
Q: Why certificate of deposit is considered as lending investment
A: Answer-
Q: 6. You have a balance of $1,500 on the credit card described in q5. You make the minimum payment…
A: Annual rate % (Nominal interest rate) : 10.95% Compounding : Monthly (12/Yr) => The Effective…
Q: Most credit cards operate on revolving credit. True or false? Explain how?
A: Revolving credit refers to an arrangement between the customer and the financial institution in…
Q: The owner of Sebastopol Tree Farm deposits $400 at the end of each quarter into an account paying 5%…
A: D=$400i=5%4=0.0125 (divided by 4 as the interest is compunded quaterly)n=9×4=36 (multiplied by 4 as…
Q: Provide answers in the form of a percentage to three decimal places . (a).What is the effective…
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Q: Explain with detail about interest rate deposit facility and lending facility
A: Answer-
Q: Which Interest rate is better to use the simple interest or compounded interest plan, explain your…
A: The interest rate is the amount charged on the principal by the borrower to the borrower to use the…
Q: Explain the "Standard of deferred payment" function of money
A: Money plays a very important role in one's personal life and for the economy as a whole. We can't…
Q: uppose you want to withdraw $1500 every 6month from an account that's pays 14% interest compounded…
A: Given 6-Monthly withdraw amount A= $1500 Rate of interest = 14% compounded twice a year or…
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- Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he will need 80% of his salary for retirement in 10 years. Tom invests him money in Citizen's Bank at 6% compounded quarterly. How much money would Tom have to put in the bank today to have enough for retirement?5:33 Ь N{ 23% ( Title A man purchased a car with a cash price of P350,000. He was able to negotiate with the seller to allow him to pay only a down payment of 20% and the balance payable in equal 48 end of the month installment at 1.5% interest per month. Once the day he paid the 20th installment, he decided to pay the remaining balance. What is the remaining balance that he paid?| 1/1 ET T T 17 IIAt the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly. If they decide to withdraw equal monthly payments for 10 years, at the end of which time the account will have zero balance, how much shouldthey withdraw each month?
- Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) AmountFinanced Number ofPayments APR TableFactor FinanceCharge MonthlyPayment $700 18 16% $ $ $You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000 per year for each of the next 4 years of college and still have $3,000 left in the account when you graduate. What interest rate does this account need to earn? (HARD)Cole’s Home Solutions policy is to charge 2¼% interest each month on unpaid credit balances. What nominal interest is Cole’s charging? What is the effective interest?
- Lino borrows $600,000 with interest at 14% compounded quarterly. He agrees to settle this obligation by a sequence of equal quarterly installments with the first one due at the end of 4 ½ years and the last at the end of 9 years. Find the installment payment. PBlank 1 Blank 1 Add your answerDiscount #211669 for 3 years and 9 months at 4% compounded quarterly. Round your answer to 2 decimal places.Use the add-on method of calculating interest to find the total interest and the monthly payment. Amount of Loan Length of Loan Interest Rate 3.5% $1050 18 months The total interest is $ (Type an integer or decimal rounded to the nearest cent as needed.) The monthly payment is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to the nearest cent as needed.) 80 Q C F5 MacBook Air C F6 F7 DII F8 8 F9 J F10 F11 Next F12
- What simple interest rate is equivalent to simple discount rate 15 ½ % in discounting anamount for 9 months?4-19. In 2014, the average debt for college student loans is $32,300. This amount to a $300 monthly payment for a “standard” loan repayment plan over 10 years. What monthly interest rate is being charged on this typical student loan?Jill bought a $680 rocking chair. The terms of her revolving charge are 1.5% on the unpaid balance from the previous month. If she pays $100 per month, complete a schedule for the first 3 months. Be sure to use the U.S. Rule. (Round your final answers to the nearest cent.) Monthly payment number Outstanding 1.5% interest Amount of Reduction in Outstanding balance due balance due payment monthly payment balance due 2 3 Mc Graw Hill A Prev 2 of 15 Next > MacBook Air 44 DII V10 18 F7 F6 F10 F4 FG 19 F3 27 F2 * & @ #3 %24 4. 6. 1 T Y Q W J K F G S C V com < CO A.