Carl borrowed P101,466 from his friend to pay for remodeling work on his house. He repaid the loan 20 months and 12 days later with simple interest at 1.36%. His friend then invested the proceeds in a bank for 10 years paying 5.83% compounded monthly. How much will his friend have at the end of the 10 years?

Carl borrowed P101,466 from his friend to pay for remodeling work on his house. He repaid the loan 20 months and 12 days later with simple interest at 1.36%. His friend then invested the proceeds in a bank for 10 years paying 5.83% compounded monthly. How much will his friend have at the end of the 10 years?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 20P: Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows...

See similar textbooks

Similar questions

Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?
Carl borrowed P183,074 from his friend to pay for remodeling work on his house. He repaid the loan 14 months later with simple interest at 4.38%. His friend then invested the proceeds in a bank for 7 years paying 6.63% compounded quarterly. How much will his friend have at the end of the 7 years?Write your answer in two decimal places.
Kang borrowed $5200 from his friend to pay for remodeling work on his house. He repaid the loan 8 months later with simple interest at 6%. His friend then invested the total amount received back from Mr. Kang (Loan & Interest) in a 5-year CD paying 6.3% compounded semiannually. How much will his friend have at the end of the 5 years? Round to the nearest hundredth
Miller invested P15,250 for 10 years and received P9,150 in simple interest. What was the rate of that investment? Nick borrowed P6000 at 9% simple interest fro 1 ½ years to repair his rice threshing-machine. Find the simple interest, future value, and equal monthly installments? Benjamin deposited P600 in a saving account that pays 4% simple interest. How long did it take for his deposit to earn an interest of P72. What amount was invested for 5 years at 2 ¼ % if it earned interest of P2,500? At what interest rate will P15,000 earn an interest of P2,500 at 1.8%?
John borrowed P4500 cash from his friend. His friend's condition is that he must pay his debt in 2 years with an interest of 3% one time payment only. However, john plans to set aside an amount of money in his piggy bank every 3months with an interest of 4% compounded quarterly until he can accumulate the total debt and pay it one time to his friend. How much money must John set aside every 3months?
Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance using a 30-year, 9 % per annum compounded monthly conventional loan. a) How much were his monthly payments? b) If he sold the house for $700,000 after 6 years, how much equity did he have in the house? c) How much is his contribution to his loan (Principal and Interest)?
Jerry bought a house for $400,000 and made an $80,000 down payment. He obtained a 30-year loan for the remaining amount. Payments were made monthly. The nominal annual interest rate was 6%. After 10 years (120 payments) he sold the house and paid off the loan’s remaining balance. (a) What was his monthly loan payment?(b) What must he have paid (in addition to his regular 120th monthly payment) to pay off the loan?
Jodan received an amount of GHc 1000 from his grandpa as a birthday gift. He decides to invest the money at 15%f for five years. What is the amount receivable at the end of five years ?
Luke deposited $3500 into a savings account that earns 5.50% annually but is compounded 4 times per year. He plans to leave the funds in the accounts for 3.50 years. However, at the end of 1.50 years, Luke has to withdraw $1000. What amount will be in the account at the end of the original 3.50 years
Mr. Angel deposited 125,000 in Coconut Bank. After 2 years, he withdrew 13,600. After another 2 years, he again withdrew 9,500. If he wishes to withdraw all his savings after 5 years from the time of his deposit, what amount will he receive if the interest rate is 9% compounded quarterly?
When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25 years. If he makes all 300 payments, repaying his loan on schedule, how much interest will he pay? (Assume all payments are of equal amount)
Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay Gerri interest for the loan at the rate of 4% /year, compounded monthly. Paul will now begin repaying the amount he owes by amortizing the loan (plus the interest that has accrued over the past 2 years) through monthly payments over the next 5 years at an interest rate of 3% /year compounded monthly. a) Find the size of the monthly payments Paul will be required to make. b) Find the outstanding principal at the end of 3 years. (Using formula)