Answered: Fir a $5,000 loan repayment over 2…

Business

Economics

Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A deposit of $495 earns 3% p.a. interest compounded monthly, how much money will be in the bank…

A: Given information, Principal amount (P): $495 Interest rate (r)= 3% Compounding period (m): 12…

Q: K Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: The objective of the question is to find the interest rate required for a sinking fund to reach a…

Q: a. If an investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly. After 3…

A: a. Given An investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly.…

Q: Bill's mortgage balance is $70,000 with a 7% annual interest rate. His monthly payment is $465. What…

A: Given that; Mortgage balance =$70,000 Annual interest rate = 7% Monthly payment = $465 Monthly…

Q: 1, $5,200 is invested each year at 4% compounded annually for 10 years. At the end of this time,…

A: Future value is a value of an investment or asset on a specific date in the future. To put it…

Q: An investment company is going to place $300,000 into an annuity. Then, it is going to add $25,000 a…

A: An investment is the responsibility of money or capital to something with the expectation of profit…

Q: If I loaned 167,569 today and promised to pay it back after 5 years to the bank with monthly…

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: homeowner planning a kitchen remodeling can afford a $700 monthly payment. How much can the…

A: Given, R = $700 Time = 5 years Rate (r) = 9%

Q: You purchase a car today using a loan of $19000o APR 6%. plan is to pay during 5 years with equal…

Q: Determine the present worth of annuity consisting of 6 payments of 120,000 each payment are made at…

A: Annuity: An annuity could be a series of payments, or cash flows, paid at regular intervals (e.g.,…

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: Find the future value and total interest of the annuity. (Round to the nearest cent as needed.)…

A: The measure that determines the value of the asset currently at a date in the future based on its…

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 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: 1) You have a goal of saving $1500 over 6 years. Assuming bank interest rates are 5%, What annual…

A: Here we calculate the annual deposit amount by the following method as follow;

Q: you paid $3,100 to a bank to pay off a debt you borrowed 3 years ago with 12% annual interest rate.…

A: Present worth refers to the current value of an expected cash flow in the future based on the time…

Q: offered a loan, amount borrowed = 2800, 24 monthly payements, monthly payement is $190/month.…

A: Formula: Monthly Interest Rate (r) = PMT / PVPMT (Monthly Payment) = $190PV (Loan Amount) =…

Q: How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years?…

A: Information extracted in the question: Simple interest = 6% Future value = $1000 Time = 5 years

Q: after 5 years if the account earns 8.0% interest compounded annually? Be sure to include a cash flow…

A: Cash Flow (CF) is the increase or decrease in the amount of money a business, institution, or…

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: You can afford $200 per month car payment. You've found 3 years loan at 2.2% annual interest rate,…

A: The annual interest rate can be expressed as a simple interest rate or a compound interest rate,…

Q: Which of the two rates would yield the larger amount in 1 year? (A) 2% compounded quarterly B) 2.02%…

A: Answer to the question is as follows:

Q: If you deposit dollar 10000 into a fund paying 6% interest compounded monthly. how much can you…

A: Given the present value in the fund = 10000 Interest rate = 6% Monthly interest rate = 6%/12 = 0.5%…

Q: Compound Interest. Determine the future value of $700 which is invested at 10% interest which is…

A: Introduction: Given the present value = $700 Interest rate = 10% Time period = 8 years

Q: if I loaned 167,795 today and promised to pay it back after 5 years to the bank with monthly…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: How long (in years) will it take to quadruple a money if it earns 2% compounded semiannually?

A: Compounding refers to a process in which the interest is accumulated on the principal amount as well…

Q: Which of the following is the preferable interest rate for investing your money? (i) 12% Compounded…

A: Given: Interest rate (r)=12%

Q: How much do you need to deposit in an account today in order to have $11,000 in the account in 6…

A: Every commercial bank decides its Annual Percentage Rate (APR) range based on the interest rate set…

Q: Lara deposited 1000 in her bank account at the beginning of every quarter for 9.5 years. Interest…

A: Compounded quarterly "it is the interest amount earned quarterly on an account or investment where…

Q: How many years will it take an investment to double if the interest rate is 8.4% compounded at the…

A: The formula for effective interest rate per year is i=1+rmm-1 where m is the reciprocal of the…

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: 4) You collect rent from your tenant at the beginning of each month. Rent is $1250 in the first…

A: Here initial rent received per month = $1250 So, rent per year = $1250*12 = $15,000 every year rent…

Q: .How long it take money to quadruple if it earns 3% compounded daily 16636 days 16637 days 16867…

A: Let the initial amount is x. It will become 4x in n days. Rate of interest is 3% compounded daily.…

Q: Three professional siblings decided to save money so they can buy a house and lot for their parents…

A: Present worth is the discounted value of money at a given interest rate during a given time period.…

Q: Assume that you deposited $750 in an account 5 years ago with 12% annual interest rate. How much…

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

Q: A loan is repaid by making payments of $5000.00 at the end of every six months for fourteen years.…

A: Periodic payment (A) = $5000.00Length of each period = 6 months or half a year.Nominal rate of…

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.…

Question

Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment.

Expert Solution

Step 1

Introduction: The loan amount is $5000 which has to repay in 2 years by making monthly payments. Moreover, the interest rate charged on the loan amount is 12%.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

fee cash flow diagram
Compute the effective annual rate of interest (a) for 6% compounded monthly; (b) at which $1100 will grow to $2000 in seven years compounded monthly. Please write to text formet answer
Please give me the exact solution of problem below You have $25,000 in an account that pays 6% interest compounded annually. You want to make equal annual withdrawals so that the money lasts 8 years exactly. (i) Find the amount of each withdrawal. (ii) Find the amount of each withdrawal if the money must last 12 years.
You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment of $1,400 on day 36 (36 days after getting the loan). Calculate your balance after the $1,400 payment is applied.
Calculate the effective rate corresponding to each of the following rates:(a) 9% compounded semi-annually(b) 9% compounded quarterly(c) 9% compounded bi-monthly(d) 9% compounded monthly(e) 9% compounded continuously
If you deposit $10000 into a fund paying interest 6%. How much you get after one year.
You buy a car for $27000. You get a loan at 7% interest compounded yearly. You will have 60 equal monthly payments of 5543.63 each month. How much total interest will you have payed on the car loan once all of your payments are complete..
The balance of an account continuously compounded was $2006 after 7 years and $6790 after 12 years. What's the balance after 14 years? dollars.
Chris makes a deposit of $500 into his savings account at the beginning of each year for the next 20 years. If the account earns 5% interest rate per year compounded annually, what will be the future value at the end of 20 years?Need to calculate.
Suppose you take out a car loan of $15,000 with an interest rate of 15% compounded monthly. You will pay off the loan over 36 months with equal monthly payments.(a) What is the monthly interest rate?(b) What is the amount of the equal monthly payment?(c) What is the interest payment for the 15th payment?(d) What is the total interest paid over the life of the loan?
Scott deposited $1,000 at the end of every month into an RRSP for 8 years. The interest rate earned was 4.50% compounded semi-annually for the first 4 years and changed to 4.75% compounded monthly for the next 4 years. What was the accumulated value of the RRSP at the end of 8 years?
What is the future worth of each given series of payments?(a) $8,000 at the end of each year for five years at 7% compounded annually.(b) $10,000 at the end of each year for eight years at 8% compounded annually.(c) $18,000 at the end of each year for 20 years at 10% compounded annually.(d) $7.000 at the end of each year for 12 years at 12% compounded annually.