A 20-year mortgage set up for uniform monthly payments with 6 percent interest compounded monthly is taken over by a new owner after 8 years. At that time $12,000 is still owed on the principal. What was the amount of the original loan?

Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…

A: here we calculate the future value and the effective interest rate of the following , so by using…

Q: How long will it take money to double itself if invested at 10% compounded annually?

A: Compound interest formula: F = P (1 + r)n Where F is the future value P is principal value r is…

Q: On March 25, you borrow some money for 120 days.  What is the maturity date?

A: Remaining Number of Days in March - (31-25) = 6  Number of Days in April - 30 Number of Days in May…

Q: If a bank says that it has a 5% nominal interest rate, but money is compounded monthly in that bank,…

A: An effective annual interest rate is basically the actual return on a savings account or on any…

Q: Question 1: If you borrowed 18000$ at 4% annual interest. You agreed to repay the loan with five…

A: Answer; 1)Total Interest: $2,216.44 2)Interest= $448.82Principal=$3,594.47 3)Balance after 3rd…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage.  How much total will you pay back on…

A: Compound interest is also referred to as "interest that is not simple." Compound interest does not…

Q: Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable…

A: To find the percentage of interest paid on the loan, we need to calculate the total interest paid…

Q: A bank sales a pledge of savings certificate of 500,000$ to pay 10 years later. to a 4% continuous…

A: The information which has been given to us is as follows:-   Future value is $500,000 n is given to…

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: How much will a bank deposit of $2,000 that pays 10% compound interest be worth at the end of 3…

A: Compounding interest is a type of interest calculation where the interest earned on a principal…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate

Q: t refers to the length of time over which interest is charged or earned.   a    Compounding Period…

A: Any amount which is deposited today referred as principal and there is some interest that is earned…

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: Calculate the monthly mortgage payment with the following conditions: $515,000 borrowed, 3.15%…

A: According to question the total amount borrowed for the mortgages is $515,000, with the interest…

Q: It refers to the actual or exact rate of interest earned on the principal during a one year period.…

A: There are different ways to calculating interest earned on investment in a specific year, and…

Q: A person borrowed $200 for one month and paid $30 in interest. However, she did not know whether the…

A: We can calculate the total amount to be repaid and the annual interest rate for both simple and…

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid…

A: To calculate the nominal interest rate and effective interest rate, we can use the information…

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: Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00…

A: Given  Mr. Benedito borrows $50,000, So present value P=$50,000 The value of the promissory note is…

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal the…

Q: Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of…

A: here we calculate how much is each monthly payment to Mary Smith by following method given below

Q: Actual rate of interest on the principal for one year. A Nominal Interest B Compound Interest

A: The rate of interest on principal is returns for postponing consumption or spending. High rate of…

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: ill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded…

A: Amount deposit = 100,000 r = 10% n = 10

Q: At 8% annual interest compounded monthly, how long will it take to become a millionaire if you…

A: The annual interest rate is 8%, compounded monthly The amount invested is $150,000 We have to find…

Q: Ms. Roberts decided to invest some money in an insurance company with an interest rate of 9%…

A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate

Q: You bought an antique car three years ago for $500 000. Today it is worth $650 000.(a) What annual…

A: Time (t =) 3 years;    Principle (P) = $500,000   Worth after 3 youlf x= $ 150,000

Q: You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will…

A: The future value of a deposit refers to how much the deposited money will grow over time,…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: Derek borrows $294,333.00 to buy a house. He has a 30-year mortgage with a rate of 5.79%. After…

A: The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real…

Q: Hey can someone help me with this? Explain the main differences between amortization, annuity and…

A: The term loan refers to a form of credit vehicle within which a complete of money is lent to a…

Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.)  A man buys…

A: The payment is made semi-annually. Thus, the time period is 24 semi-annual (12 years) period.…

Q: ohn paid $500 per month for 20 years to pay off a mortgage on his house. If his down payment was…

A: Future value and present value are the economic terms that are used to determine the future or…

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: Assume, you want to get $1,000 after 5 years. How much equal amount of money do you need to deposit…

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