You borrow P3500 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. What is the amount of money to be less by borrowing the money from the bank?

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

Q: Your bank pays 2.7% interest per year. You put $1,200 in the bank today and $600 more in the bank in…

A: We need to ise compound interest formula to calculate amount of money in 2 years A=P(1+i)n Where…

Q: You plan to borrow $1000 from a bank.  In exchange fro $1000 today, you promise to pay $1080 in one…

A: Given: The amount that is planned to borrow today is $ 1000 The amount that is to be paid after one…

Q: You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year…

A: Here, Value of Home is $200,000 Down payment is $20,000 Time Period of Loan is 20 years Interest…

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years.  Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: Suppose you want to borrow $20,000 for a new car. You can borrow at 8% per year, compounded monthly…

A: Amount to borrow= $20,000 Interest rate= 8% per year, compounded monthly (0.6667% per month) Time…

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Price of Home =$ 170000 Down Payment =$ 34000 Amount Financed = $ 170000-$ 34000 = 136000 Years = 20…

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Lets understand, how to solve it.  For solving the question, we need to use below formula. = Amount…

Q: You have $100 and a bank is offering 5.0% interest on deposits. If you deposit the money in the…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: How long would it take $1,000 to double if it were invested in a bank that pays 6% per year?

A: Data given is as follows: Investment (Present Value) = $1000 Investment (Future value) = $1000 * 2 =…

Q: You expect to have $1000 in one year.  A bank is offering loans at 6% interest per year, how much…

A: Given: Money invested today (C)= $1000 Interest rate (r) = 6% =0.06 Number of years (n) = 1

Q: You borrow $ 3500 for one year from a friend at an interest rate of 1.5 % per month instead of…

A: The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in…

Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…

A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…

Q: Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent,…

A: We use NPER function to calculate monthly payments (in financial calculator and excel)

Q: You want to buy a $170000 home. You plan to pay $51000 as a down payment, and take out a 15 year…

A: Given:

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: the amount of the down payment?

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

Q: you want to buy a $360,000 home. You pay 108,000 as a down payment and take out a 15 year loan at…

A: Outstanding balance is calculated by present value of annual payments left to be paid, so PV formula…

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three (as per…

Q: You can borrow 5,000 pesos from a friend or from a bank. Your bank will charge you 20% each year,…

A: Here, Borrowed Amount is 5,ooo pesos Interest Rate charged by Bank is 20% Interest Rate charged by…

Q: What is the annuity payment?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Suppose you want to have $7,876 for a vacation in the future. What will be the estimated total you…

A: future value formula: future value = present value ×1+rateyear future value of annuity…

Q: If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year…

A: Given values: Present value (PV) is $25,000. Annual payments (PMT) are $4,424.50. Maturity period…

Q: You want to buy a $330000 home. You plan to pay $33000 as a down payment, and take out a 20 year…

A: given, price =  $330000 downpayment = $33000 principal = $330000 - $33000 = $297,000 n=20 m=12…

Q: You are given the option to borrow P5,000 you need for one year. Which of this will you pay lesser…

A: Option -1 = 1.5% per month Option -2 = 18% per year

Q: You want to take out a mortgage on a house worth $50,000 and pay it back in 10 years. Since your…

A: Here, Mortgage Amount is $50,000 Simple Interest Rate is 2% per month Time Period of loan is 10…

Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a…

A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000

Q: You want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year…

A: Dear student we need to use excel to solve this problem. The formulas that you need to understand to…

Q: You want to have $10000 in five years.  How much should you deposit today if the bank pays 4%…

A: $10000 in 5 Years  That is 5*12 months = 60 Months (n) Interest rate 4% annual compounded monthly…

Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…

A: Monthly payments to be paid on the loan amount are calculated using the interest rate, loan amount…

Q: You plan to borrow P10,000 from your bank, which offers to lend you the money at a 7.5% nominal rate…

A: Borrowed amount is P10,000 Nominal interest rate is 7.5%   To Find: Effective interest rate on a…

Q: Suppose you take out a $37,000 4-year balloon loan from a bank at an interest rate of 9.8%. What…

A: Balloon payment is future value of payment considering the interest rate and period.

Q: You want to save P85,000 for future family vacation (three years from now). If the bank pays 8.5%…

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

Q: Someone is borrowing from a five-six ( Bumbay ) money lender. How much will   be charged if you want…

A: Interest is referred to as the monetary charge which is to be paid to the moneylender on the…

Q: How long will it take for your deposit to be P20, 000 if the account pays 12% annually?

A: Future Value: It represents the future worth of an investment cash flow and is computed by…

Q: You are considering purchasing a piece of industrial equipment from the U.S.A. that costs S30,000.…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest…

A: Hi there! Thank you for the question. Post contains multiple questions. As per company guidelines…

Q: Say you barrowed $10,000 from a bank at 12% interest rate per year for a period of 10 years. How…

A: Borrowed amount is $10,000 Interest rate is 12% Time period is 10 years   To Find: Amount after 10…

Q: The first national bank has agreed to lend you $30,000 today, but you must repay $42,135 in 3 years.…

A: Given: Present value =$30000Future value =$42135Time period =3 years

Q: To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded…

A: Loan amount  $       42,000.00 Interest Rate 7.50% Time Period(Years) 5

Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple…

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

Q: Suppose that you borrowed $20k for 36 months to buy a car last year at an annual interest rate of 5%…

A: Monthly payment is the fixed amount of monthly payment made by the borrower against the loan. The…

Q: suppose you want to buy a new car that costs you 15514 OMR by a loan from bank Muscat for 6 years.…

A: Given: Loan = OMR 15,514 Interest rate = 4.004% Year = 6

Q: a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5%…

A: Working: