A man plans to take a vacation in 4 years. He wants to buy a certificate of deposit for $1200 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1700 for the​ trip? Assume that the interest on the loan is computed using simple interest The rate he must obtain is ___%

Q: If your uncle borrows $70,000 from the bank at 12 percent interest over the ten-year life of the…

A: Annual payment refers to the payment that is made each year including interest and principal for…

Q: You want to buy a $183,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The down payment is the amount of cash paid while purchasing the home. The down payment decreases…

Q: You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year…

A: Given:

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

Q: ou borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23…

A: Loans are paid in equal monthly installments and these carry the payment for interest and payment…

Q: a man borrows money from a bank . he receives the money in 5 equal annual installment of X…

A: The time worth of cash (TVM) is the idea that cash you have now is worth more than the…

Q: You plan to purchase a house for $166,000 using a 15-year mortgage obtained from your local bank.…

A: Discount points refer to the optional fees (extra charges) over the agreed stated interest rate on a…

Q: An individual wishes to borrow $10,000 for a year and is offered the following alternatives: a. A 10…

A: Calculating the effective interest rate on borrowing option 10% loan discounted in advances. We…

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

Q: You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…

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

Q: You decide to purchase a house for $260,000. You have saved money so you are able to do a down…

A: A loan/mortgage indicates any sum borrowed to meet specific funding needs. The funding requirements…

Q: When you buy a certificate of deposit (CD), you are investing your money in an account that earns…

A: The formula used to compute final worth of CD as follows: A=P1+rnnt

Q: Suppose you have $1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 0%…

A: The maturity amount of a certificate of deposit can be calculated using the compound interest…

Q: You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage…

A: The long-term loan that is taken by an individual person or an organization for the purchase of a…

Q: If I purchased a car loan for Php 800,000 with an annual rate of 15% for 5 years, how will I able to…

A: Loan amount (P)= Php 800,000 Annual rate (R)= 15%  Time (T)= 5 years S.I. and C.I.=?

Q: You want to borrow $77,000 from your local bank to buy a new sailboat. You can afford to make…

A: Compound = Monthly = 12Present Value = pv = $77,000Monthly Payment = p = $1300Time = t = 78

Q: Suppose you are in charge of annuities for a life insurance company. A customer comes in and wants…

A: Annuity amount =1,000,000 Lets assume Remaining Life =55 years Life in months =660 Interest rate 7%…

Q: when

A: !!!The amount of the deposit will grow on a daily basis, At the end of five years, the amount must…

Q: You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns…

A: The objective of the question is to calculate the balance in the bank account right after the second…

Q: Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay…

A: Mortgage amount = $100,000Interest rate = 12%Loan term = 30 yearsTo find: a. Number of years it…

Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel…

A: Retirement amount = $400,000Number of years = 25Interest rate = 5%To find: a) Monthly deposit, b)…

Q: John wants to borrow 75,800 from a bank payable in 3 years and 9 months. if the bank charges 9.5%…

A: Note:  It is assumed that the loan is given on a simple interest rate basis. Simple Interest refers…

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: Tony Ring wants to attend Northeast College. He will need $65,000 4 years from today. Assume Tony's…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

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

Q: Suppose I have a balance of $4500 on my Bank of America credit card.  Assume the interest rate on my…

A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…

Q: A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for…

A: (a) The amount borrowed by this person : Amount borrowed= $8000/(1.12) = 7142.85 (b) Credit Worth…

Q: from

A: The Amount must be find out. Interest Received = A (Amount) - P (Principal) Given P =$10500, A=?, R…

Q: Implied interest rate and period Consider the case of the following annuities, and the need to…

A: Loans ar paid by equal periodic payments and these payments carry the payment for interest and…

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: The bank will loan you $175,000 to buy a house. The loan terms are as follows; 30 year mortgage with…

A: A mortgage refers to a covered loan taken out for purchasing a property. The collateral for the loan…

Q: nt a.)If his new home costs $136,000, what is his down payment? b.)How much is he going to borrow…

A: PMT function computes installment amount for given interest rate (RATE), no. of installments (NPER)…

Q: borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: enext five years, and the annual interest rate is 6%. ich of the following formulas determines…

A: Loans are to paid by equal monthly payment that carry the payment for the interest and payment for…

Q: Graduation is 2 years away and you want to have $1000 available for a trip. If your bank is offering…

A: Given information: Amount required in future (A) = $1000 Interest rate (r) = 2.6%  or 0.026 Time in…

Q: You plan to use a 15 year mortgage obtained from a local bank t purchase a house worth $124,000.00.…

A: Maturity =  15 year     Purchase price =                       1,24,000       Down payment =…

Q: A student can afford to spend no more 150 e per month on a loan to pay his college fees. If the…

A: Compound = monthly = 12 Payment = p = 150 Interest rate = r = 2 / 12% Time = t = 5 * 12 = 60

Q: 4 years? What is the effective interest rate if the present worth factor is 0.6875

A: Present value factor is the factor used to convert a future cashflow to current terms. That is, when…

Q: a. The bank offers a 30​-year mortgage with fixed monthly payments and an interest rate of 0.53% per…

A: Given information :- Loan amount = $620,000 Time period =  30 years or 360 months  Monthly interest…