Boatler Used Cadillac Co. requires $810,000 in financing over the next two years. The firm can borrow the funds for two years at 7 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 5.25 percent interest in the first year and 9.55 percent interest in the second year. Assume interest is paid in full at the end of each year. a. Determine the total two-year interest cost under each plan. b. Which plan is less costly? Short-term variable-rate plan or Long-term fixed-rate plan?

Jack has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j₂=3.47%. He will make 10 annual repayments. According to the loan agreement, Jack's repayments will be $89,000 for the first two years followed by payments of with the amount of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (a) Assume that all annual repayments will be paid at the end of each year (the first payment will be at the end of the first year), what is the value of Jacks' annual payment amount X (rounded to four decimal places)? a. 120881.0561 b. 129241.8018 O c. 129491.0651 O d. 120718.5766 Jack has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=3.47%. He will make 10 annual repayments. According to the loan agreement, Jack's repayments will be $89,000 for the first two years followed by payments of with the amount of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years.…

Jack has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=3.11%. He will make 10 annual repayments. According to the loan agreement, Jack's repayments will be $94,000 for the first two years followed by payments of with the amount of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (a) Assume that all annual repayments will be paid at the end of each year (the first payment will be at the end of the first year), what is the value of Jacks' annual payment amount X (rounded to four decimal places)?

George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term.  a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one. b)How much will he receive (capital plus interest)  after one-year if he invests for six months at a time at 3.5% each time?  This  means  George  took the interest from the first investment transaction and included it in the principal for the second transaction.   Round to nearest 100th. c)What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th .

Jordan was supposed to pay Courtney $4,200 6 months ago and $2,220 in 5 months. If he wants to repay this amount with two payments of $3,500 today and the balance amount in 3 months, calculate the balance amount. Assume interest is 2.40% p.a. and the agreed focal date is 3 months from now.

Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan Jason decides to make deposits in a fund that earns j4 = 13%. The first deposit is $10000 at the end of 9 months and $X at the end of 27 months. Determine X using the end of 3 years as a focal date? Answer: $ Note: Do not round any intermediate calculations.

A person is considering entering into an agreement with an investment company to deposit $1000 into a special account at the end of the first year, $1100 second year, and increasing by $100 every year for 15 years. At the end of 15 years, the person would be able to withdraw $36000. At which rate does the person earn interest if the interest is compounded annually? The answer is 5.54% per year. I am trying to understand why.

Donovan took a $46,000 loan at 3.78% compounded monthly and decided to make end of month payments of $1,413. 1) How many payments will Donovan have to make to amortize this loan? (rounded to the next higher whole number) 2) What will the size of his final payment be? (enter a positive value)

4. Suppose Dr.Campbell has a home purchase of $145,000 at the APR of 6% for 30 years, and he have made 8 years of payments. If he decide to refinance that loan for 4%for 15 years. ) How much is his original monthly payment? -- Create an amortization schedule for the first three months for the beginning 30 years loan.

Jesse borrowed $30,000. The company plans to set up a sinking fund that will repay the loan at the end of 8 years. Assume 12% interest rate compounded semiannually. What must his company pay into the fund each period of time?