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: An individual makes six annual deposits of $2,000 in a savings account that pays interest  at a…

A: Given  To solve the given problem, we need a cash flow diagram. There are six annual deposits of…

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: Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

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: 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: 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: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 7% interest…

A: Given:- Mortgage payment amount=$1500 Time frame=30 Years Interest rate=7% Please find detailed…

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: 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: 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: 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: n an ordinary annuity (uniform series of payments) if the nominal rate of interest is 8% compounded…

A: a.) CAPITAL RECOVERY FACTOR   When compounded quarterly the interest rate is divided by 4 and the…

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 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 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: 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: 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: Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the…

A: Here we calculate the Following interest rate by using the given information so the calculation of…

Q: Jane deposits $5,000 in a bank account that earns 6% interest compounded semi-annually. How much…

A: The principal amount can be described as the base amount of money that is invested or deposited into…

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 buy a car for $27000. You get a loan at 7% interest compounded yearly. You will have 60 equal…

A: total interest refers as the total simple interest on a principal amount at a particular rate of…

Q: Chris makes a deposit of $500 into his savings account at the beginning of each year for the next 20…

A: The future value refers to the value of an investment or cash flow at a specific point in the…

Q: 1. You borrowed $100,000, agreeing to pay the balance in 10 equal annual installments at 8% annual…

A:

Q: You want to buy a $30,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Loan amount refers to an original principal on a new loan taken or given . It can also be the…

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…

Q: How long will it take GH¢2,000 to accumulate GH¢800 interest at 10% compounded quarterly?

A: Amount = Principle*(1+4*r100)4*n