1. Assume you graduate with a student loan total of $28,000. You are going to pay off this loan with monthly payments for the next 8 years. The monthly interest rate is 0.25%. What is your monthly payment amount? (Answer is not 3,539.49)

Q: QUESTION 2   a)                    Assume that you borrow $30,000 to purchase a new automobile and…

A: Given; Amount borrowed= $30000 Interest rate; r= 4% Time period; n= 4 years

Q: 5. Lerios has a loan business that charges 15% simple interest. Joey borrowed P4000 from Tony; how…

A: Given information, Principal amount (P): P4000 Time period (t): 60 days Interest rate (r): 15% To…

Q: Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if…

A: The objective of this question is to calculate the future value of a deposit made today, given the…

Q: Bill's mortgage balance is $70,000 with a 7% annual interest rate. His monthly payment is $465. What…

A: Given that; Mortgage balance =$70,000 Annual interest rate = 7% Monthly payment = $465 Monthly…

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

Q: If you deposit $2,042 today in a savings account that pays 8% interest annually, how much would you…

A: Given: Principal (P) = $2042 Interest rate (R) = 8% annually Time (T) = 5 years

Q: Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments…

A: Monthly PITI (Principal, interest, tax , insurance) = monthly PI + Monthly tax + monthly insurance…

Q: None

A: Step 1:a.We have i = 12%, n = 12$600 (P/A, 12%,12) = 600 * 6.1944 PV = $3,716.62  Step 2:b.here we…

Q: A grocery store sells for $181,500 and a 20% down payment is made. A 35-year mortgage at 6% is…

A: A grocery store sells for $181,500 and a 20% down payment is made. A 35-year mortgage at 6% is…

Q: You are saving for the down payment on a house, so you put $1,000 in an account every 6 months. If…

A: An interest rate is charged on the borrowing money of consumers. It is charged by the lender of the…

Q: If you borrow $12,000 at 20% interest rate for 5 years, what is your ordinary simple interest in…

A: Simple Interest refers to the money that is paid only on principal. Principal is the money that is…

Q: nterest rate... How much do you need to deposit in an account today in order to have $11,000 in…

A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…

Q: Example: Imagine you deposit 2000 TL at a monthly compounding rate of 6% for the first 2 years, and…

A: The measure that depicts the value of an investment that is being made in present on a specific date…

Q: Suppose that under the Plan of Repayment one should pay off the debt in a number of equal…

A: Loan repayment refers to the process of paying back borrowed money, typically with interest, over a…

Q: The annual interest rate on a credit card is 13.99%. If the minimum payment of $10 is made each…

A: An intеrеst ratе is thе cost of borrowing monеy or thе rеturn on invеstmеnt еxprеssеd as a…

Q: How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years?…

A: Information extracted in the question: Simple interest = 6% Future value = $1000 Time = 5 years

Q: Sam has the option of purchasing a car for $30,000 or leasing it for a $375 payment made at the…

A: Given: Sam purchased a car for = $30,000 Leases it for = $375 per month Time period = 4 years The…

Q: What is the total cost of interest?

A: Total cost of interest = (monthly MorTgage Payment x Year x 12) -(Loan Amount ) Monthly Mortgage…

Q: You have a student loan with a 10% APR, compounded monthly, and a $27,000 balance. You plan to pay…

A: Nominal interest rate =10%. per year compounded monthly.Loan balance (P) =$27,000Total number of…

Q: Edward wants to take a long trip around Europe 7 years from now. He estimates that he will need…

A: To arrange the $12000 for future trip after 7 years if he chooses to invest in stock portfolio that…

Q: Wou decide to place all your savings of $1,234 into a fund that has a modest annual interest rate of…

A: An annual percentage rate is expressed as an interest rate. It calculates what percentage of the…

Q: DRAW CASH FLOW DIAGRAM Suppose that P 4500 is deposited each year into a bank account that pays 8%…

A: A series of money paid at regular intervals is known as an annuity. Monthly savings account…

Q: Picabo borrows $1000. To repay the amount, she makes 12 equal monthly payments of $93.12. Determine…

A: The annual percentage rate (APR) is a direct measure that includes nominal interest rates and fees…

Q: You want to be able to withdraw $25,000 from your account each year for 20 years after you retire.…

A: Annuity is a series of cash flows (generally equal in nature) made or received at equal intervals,…

Q: When a consumer purchases an item on credit at a luxury store, she pays an effective interest rate…

A: Effective interest rate is the real or actual yield of any investment which the investor earns…

Q: You want to borrow $41,611. You must repay the loan in 13 years in equal monthly payments and a…

A: Loan amount (PV) = $41,611 Term of loan = 13 years Interest rate = 15% nominal per year

Q: You purchased a car using some cash and borrowing $19,000 (the present value) for 53 months at 12%…

A: Present value of the car=$19000Time=53 monthInterest rate=12% pa

Q: . If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal…

A: Here we calculate the following by using the given information and conclude the answer so the…

Q: You have won a lottery that pays you $100,000.00 at the end of this year, $110,000.00 at the end of…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: You want to buy a $13,000 car. The company is offering a 2% interest rate for 60 months (5 years).…

A: Loan amount of $13000 is the principal amount which is charged an interest rate of 2%. The number of…

Q: To find the balance in the account at the end of the calendar year, we calculate the effective…

A: The cash Flow Diagram is given below

Q: Does the compounding increases the amount of interest paid over a year atthe same nominal interest…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: If you save $1,000 today and the annuel interest rate is 6%, what will that money be worth in 40…

A: Given, P = $1000 i = 6% t = 40

Q: What is the interest rate that would make $10,000 received in the first year equivalent to $3,500…

A: The objective of this question is to find the interest rate that would make a lump sum of $10,000…

Q: Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment

A: Introduction: The loan amount is $5000 which has to repay in 2 years by making monthly payments.…

Q: Draw cash flow diagram and show your solution A person needs $20,000 immediately as a down payment…

A: Given that, Loan=$20000 a total of 20 payments The interest rate is 10%. Interest on a bimonthly…

Q: You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment…

A: Simple interest refers to the borrowing cost of money without consideration for the effects of…

Q: You would like to have $800,000 in your retirement account in 40 years. You assume your retirement…

A: When individuals who have earned incomes have a separate account that they wish to save for the…

Q: John loaned an amount of P10,000 for his business to be paid at the end of the year. How much will…

A: In the market, an individual can borrow money from financial institutions or any other individual at…

Q: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: The present value of a cash flow refers to its value at present based on its expected value in the…