FIND THE SIMPLE INTEREST ON 8,000 LOANED AT AN ANNUAL INTEREST RATE OF 12% FOR TWO YEARS. IDENTIFY THE MATURITY VALUE.

Q: Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest…

A:

Q: Find the present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: For a Federal Credit Union that provides a compounded quarterly interest rate of 8 percent per year,…

A: Federal credit union is referred as the credit union as per the regulatory comprehension of National…

Q: Find the effective interest rate for a $20,000 for three years if the interest is compounded…

A: Effective interest rate:Effective interest rate is also called as annual equivalent rate which is…

Q: Calculate the repayments required to fully repay $100 000 borrowed at 6%p.a. for 10 years with…

A: Borrowed amount "PV" is $100,000 Time period is 10 years Total number if quarters "N" are 10×4=40…

Q: An item can be purchased for 4,500 or for 1,500 down payment and installment payment of 115 every…

A: Loan amount (L) = Purchase price - Down payment = 4500 - 1500 = 3000 Installment payment (A) = 115…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

Q: A loan is amortized over five years with monthly payments at a nominal interest rate of 12%…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Find the annual simple interest rate of a loan, where $900 is borrowed and where $1008 is repaid at…

A: Amount Borrowed = $900 AmountRepaid after 18 months = $1008 Months = 18 YEars = 18/12 = 1.5 years…

Q: the yearly effective rate over the five-year period?

A: Yearly effective annual rate is a kind of real returns on the investments yielding interest in which…

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

A: We need to use compound interest formula to calculate the amount due A=P(1+i)n Where A= amount…

Q: A loan company advertises that $100 borrowed for one year may be repaid by 12 monthly installments…

A: Effective annual interest is the amount which is expressed in terms of percentage paid annually to…

Q: Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84…

A: Monthly payments could be computed by using the present value formula. Present value of all the…

Q: Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years,…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: Calculate the finance charge and the monthly payment on a $20,000 add-on installment loan with an…

A: The equivalent cost is the periodic payment made towards the acquisition of an asset or security for…

Q: Consider a student loan of $17,500 at a fixed APR of 12% for 25 years. a. Calculate the monthly…

A: Given: Loan Amount = $17500 APR = 12% Number of years = 25

Q: A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is…

A: Loan Amount is 200,000 Nominal interest rate convertible over 3 months is 12% Time period is 72…

Q: A mortgage for $100,000 is made with initial payments of $500 per month for the first year. The…

A: Given: The mortgage is $100,000 The initial payment is $500 The rate of interest is 9%

Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

Q: A loan is amortized over 5 years with monthly payments at a nominal interest rate of 12% compounded…

A: First monthly payment (M) = 200 Monthly growth rate (g) = 1% Monthly interest rate (r) = 12%/12 = 1%…

Q: Find the annual simple interest rate of a loan, where $300 is borrowed and where $315 is repaid at…

A: Simple interest is an amount of interest that is paid on the principal portion of a loan or deposit.

Q: A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment…

A: Loan period = 20 Years First payment amount = $ 6000 Annual decrease in payments = $ 200 Interest…

Q: Calculate the effective annual rate on each of the following loans: 1. $5,000 loan for 2 years,…

A: Effective interest rate refers to the real return that an individual or company earns on a saving…

Q: If the interest rate is 7.5% per year and the principal is 2,500, determine the amount of interest…

A: Interest= 2500 * 7.5% * (20/12) = 312.50 20/12 is done as the interest is for 12 months and we need…

Q: If $19,000 is deposited in an account earning interest compounded weekly at 5.87% for 13 years, what…

A: Effective Rate of Interest: It is the annual rate on a loan or investment considering the effects…

Q: Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rate…

Q: Find the present value of the following annuities: 100 payable every month for 5 years if the…

A: Present value (PV) also termed as current value refers to the sum of all future cash flow (CF) or…

Q: consider a student loan of 17,500 at a fixed apr of 12% for 25 years. what is the monthly payment

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12…

A: Loan balance at the end of year 1 can be calculated using  FV (rate, nper, pmt, [Pv], [type]) Rate…

Q: Find the annual simple interest rate of a loan, where $200 is borrowed and where $218 is repaid at…

A: Interest rate =( Interest / amount ) *(1/time)

Q: The amount of $7,000 is invested in a certificate of deposit (CD) and will be worth $16,000 in nine…

A: Invested amount=$7000Worth in 9 years=$16000

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: Establish loan amortization schedules for 3- year loan of 20.000 (initial loan) with equal payments…

A: Given Years 3 Loan  20,000.00 RATE 5%

Q: A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment…

A: Loan: when money is given to another party in exchange for repayment of the (principal amount +…

Q: Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Find the interest paid on a loan of $2,600 for three years at a simple interest rate of 10% per…

A: Formula: Interest amount = Principal amount x Time period x Rate of interest.

Q: Establish loan amortization schedules for 3-year loan of $20,000 (initial loan) with equal payments…

A: Loan amortization is a type of loan where the borrower is required to pay periodical or scheduled…

Q: find the present value of annuity due of 7,000 payable at the beginning of each quarter for six…

A: given, A= 7000 N = 6 M=4 R=14%

Q: Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent…

A: Amortization Schedule: It is a schedule showing the loan payments, principal amount, and interest on…

Q: A loan of $ 7000 is to be repaid in 46 equal monthly installments with the first one paid seven…

A: A study that proves that the future worth of the money is lower than its current value due to…