You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business. While the stated annual interest rate is 15%, the bank plans to compute interest every quarter. Estimate your quarterly payments on this loan. Estimate the effective annual interest rate on this loan. How would your answer to (b) change if interest were computed monthly?

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…

A: The future value of annuity due is the total future value of each cash flow which is made at the…

Q: If you take out a 4 year loan for $16,500 at your bank and pay the quarterly payments for the 4…

A: Total interest is = total payments - loan

Q: You just deposited $9,500 in a bank account that pays a 4.0% nominal interest rate, compounded…

A: Future value is referred to as the value of the current asset in future date on the basis of an…

Q: You have borrowed $20,000 from a bank for a five-year period. You will be making monthly payments on…

A: Borrowed amount is $20,000 Interest rate on Loan is 12% per annum Interest rate compounded monthly…

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10…

Q: You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of…

A: Given, The loan amount is $20,000 Term of loan is 5 years Nominal rate is 8% compounded monthly.

Q: Suppose that a person deposits $2500 in a savings account at the end of each year for the next 15…

A: Here, Annual Deposits is $2,500 Interest Rate is 8% Compounding Period is Daily i.e. 365 Payment…

Q: Assume you graduate from college with $30,000 in student loans. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: You deposit $4,000 today in a bank that promises to pay an annual interest of 8%? a. What is future…

A: (1) (a.) FV =PV*(1+r)^n =4000*(1+8%)^12 =10072.68 (b.) If rate =8% with monthly compounding FV…

Q: Suppose you borrowe9 $12,000 at an interest rate of 8%, compounded monthly over 36 months. At the…

A: Computation:

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…

A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…

Q: Assume that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8…

A: If the bank compounds interest annually, amount in the account 4 years from now will be =€1,000×FVF…

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…

A: The future value of an amount is the future worth of an amount calculated based on the time value…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…

A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…

Q: Suppose that a person deposits $500 in a savings account at the end of each year, starting now, for…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: The purchase of a car requires a $15,000 loan to be repaid in monthly installments for four years at…

A: Computation:

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Assume you graduate from college with $35,000 in student loans. If your interest rate is fixed at…

A: Monthly payment = PV/(1-(1+i)-n)/i Where PV - Loan amount i.e. $35,000 i - Interest rate i.e.…

Q: Van Buren Resources Inc. is considering borrowing $100,000 for 202 days from its bank. Van Buren…

A: Given:Borrowing amount=$1000000 for 202 daysPayable amount $3000 of interest at maturityRepaid…

Q: An accountant wants to withdraw $30,000 from an investment at the beginning of each quarter for the…

A: Time value money is the concept widely used by the management and individual to determine the…

Q: You have just deposited $9,500 into an account that promises to pay you an annual interest rate of…

A: GOAL (FV) 27940 INTEREST RATE 6.20% YEARS 8+12=20 PMT 0 PV 9500

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: How much interest is payable each year on a loan of $4,000 if the interest rate is 10% (simple…

A: Following is the answer to the given questions

Q: You are repaying a $100,000.00 loan in monthly installment of $500.00. At the same time interest is…

A: Here, Loan Amount is $100,000 Monthly Instalment is $500 Effective Annual Rate is 5%

Q: You have approached Which Bank for a loan to buy a house. The bank offers you a $400 000 loan,…

A: Given Information:Loan amount is $400,000 Interest rate is 9% (compounded monthly) Loan tenure is 20…

Q: Our home loan, based on a rate of 3.24% APR compounded monthly, required 30 years of monthly…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Niagular Corp. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What effective annual interest rate are yo being charged

A: Information Provided: Face amount = $2000 Interest amount = 14% Compensating balance = 20%

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…

Q: Gizmonic Institute Corp. needs to take out a one-year bank loan of $400,000 and has been offered…

A: Bank loan = $400,000 Simple interest rate = 9% Add on interest rate = 6%…

Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…

A: Given information : Borrowed amount $10,000 Interest rate 12% Time period (years) 3 Note :…

Q: f you borrows $60,000 from the bank at 10% interest over the 7 years of the loan. • What equal…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A local finance company quotes an interest rate of 16.7 percent on one-year loans. So, if you borrow…

A: Given  Loan amount = $25000 Interest = $4175pa Number of months = 12 months PMT = $2,431.25…

Q: Assume you have secured a loan of $10,000 from a bank  which will be paid in one year. The fin bank…

A: Closing Balnace = Opening Balance + Interest @ 0.31% - Monthly Installments

Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…

A: Calculate the future value at the end of the year 8 as follows: Future value = Present…

Q: You have borrowed $14,300 at a compound annual interest rate of 15 percent. You feel that you will…

A: given, p= $14300 pmt = $3000 r=15%

Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…

A: Using Excel PV function

Q: Suppose that you start a savings account today with $ 265,000.00, from which you will make a single…

A: Since there are multiple questions As per company policy it is only possible to solve  one question.…

Q: Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using…

A: Bank charges interest rate when you borrow money and these are to be paid equal annual payment or…

Q: Billy Thornton borrowed $60,000 at a rate of 7.25%, simple interest, with interest paid at the end…

A: Introduction Simple interest: Simple interest is the fixed amount charged on loan taken by the…

Q: You want to borrow $30,000. For the loan to you must repay $1100 every quarter (4 times per year)…

A: Loan is an agreement between lender and borrower where lender agrees to provide funds to lender for…