Q: If you repaid a loan of $3000 in 4 years with monthly installments of $86, what was the finance…
A: Computation:
Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…
A: We need to use the formula of continuous compounding belowA=P(e)rn where A=future valueP=present…
Q: A debt of $4000 due now is to be repaid by a payment of $1,000 in 1 year, a payment of $2,000 in 3…
A: Total debt =$4000 interest rate =6% First payment $1000 in one year Second payment $2000 in three…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: Given Information in the Question:- Loan Amount is $20,000 Loan Period is 5 Years or 60 months…
Q: If you have $10,000 today, and save $12,000 per quarter year at the end of the quarter while earning…
A: In the given question we need to compute the number of quarters required to accumulate $100000 if we…
Q: If you borrowed $2400 at an annual simple interest rate of 5.75%, how much would you owe altogether…
A: Interest on loan=Amount Borrowed×Rate×Years=$2,400×5.75%×3.5=$483
Q: You borrowed $10000 with an interest rate of 12%. The loan is to be repaid in equal monthly payments…
A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…
Q: Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly…
A: The computation of monthly payments:Hence, the monthly payment is 212.66.
Q: How much interest is payable each year on a loan of P2,000 if the interest rate is 10% simple…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: how much would you have to deposite if you wanted to have $49000 in five years?annual interest rate…
A: The formula to calculate present value is as below:
Q: How much the monthly payment on a $114,000 home be if you get 4.1% interest over a 15 year loan with…
A: Here, Loan Amount is $114,000 Interest Rate is 4.1% Time Period of Loan is 15 years Compounding…
Q: Suppose you buy a $40,000 car and you 'put down' $5,000 and finance the rest for 72 months at 3.75%…
A: Solution:- When a loan is taken, the amount can be repaid as a lump sum payment or in instalments.…
Q: What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually?
A: Given details are : Present value of deposit = $2000 Time period = 1 year Interest rate = 6% From…
Q: a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six…
A: Future Value = Present value ( 1 + i )n
Q: How much would you have at the end of five years if you invested P50,000 at 10.5% interest rate?
A: Future Value: It is the future worth of the present sum of the amount and is computed by…
Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?
A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…
Q: If you borrow $3,000 at 6% simple interest per year for seven years, how much will you have to repay…
A: Amount borrowed=$3000Interest rate=6%Number of years=7
Q: How much the monthly payment on a $135k home be if you get 3.6% interest over a 15 year loan with a…
A: Given information: Amount of loan : $135,000 Interest rate : 3.6% Time period : 15 years Balloon…
Q: If you saved $5,000 per year (at the end of each year) for 10 years in an account with a 4% interest…
A: Here, To Find: Future value (FV) =?
Q: if a person begins saving money by depositing $4000 per year (Annually ) at an interest rate 10% per…
A: Given information: Annual deposits : $4000 Interest rate : 5% Time period : 5 years
Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…
A: The question is based on the concept of time value.
Q: Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit…
A: 1) FV = PV * (1 + r / m)m*n FV = future value PV = present value = $12,000 r = rate of interest =…
Q: What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?
A: given, A = $400 r=6% n=5 years
Q: What is the future equivalent of $1,000 invested at 6% simple interest per year for 3 years?
A: Simple interest is the type of interest that is calculated on the principal amount invested, it is…
Q: Suppose you loaned P200,000 from a local bank to be paid back uniformly in five years. How much will…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: How would be the principal amount of loan if you need to borrow $300,000 for one year with a…
A:
Q: How much interest will be owed on a loan of P15,500 at the end of 4 years and 7months using 15…
A: Loan amount (P) = P15500 Period (t) = 4 Years and 7 Months = 4+(7/12) = 4+0.583333333333333 =…
Q: What is the future value of $1,100 placed in a savings account for 4 years if the account pays 7%…
A: Following information is given in the question: Present value (Investment today) = $1100 Time period…
Q: Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year. What initial…
A: Given that, Annual Payment (A)=$6,000 Duration (n)=4years Rate of interest (i)=9% or 0.09
Q: a. You need $17,000 in five years but you only have $12,000 now. At what interest rate must you…
A: As per guidelines, I am supposed to answer 1 question at a time. As the question is not specifically…
Q: f you borrow 5000 USD at 5% simple interest annually for 8 years, how much will you have to repay at…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: A borrower takes out a 30-year loan for a house worth $250,000. If the annual interest rate is 6%.…
A: Current value of loan (PV) = $250,000 Interest rate (r) = 6% Period for future value (t) = 12 Years…
Q: If you were to borrow $9,400 over five years at 0.10 compounded monthly, what would be your monthly…
A: Given data, Monthly rate=0.1012No of periods=5 years×12=60 months
Q: Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour…
A: Time value of money (TVM) means that the money received today will be worth more than the money…
Q: You are paid £4,000 annually for 6 years, with the first payment due in one year and the last…
A: Annual payment (P) = £4,000 Number of annual payments (n) = 6 Interest rate (r) = 2%
Q: How much money should you invest at an interest rate of 6% compounded monthly, to have P400,000 in 5…
A: Compound interest refers tonl the interest on any thing that is calculated by adding both Initial…
Q: For an interest rate of 12% compounded annually, determine the following: (a) How much can be lent…
A: Present value is calculated by discounting the future cash flow at the given discount rate. While,…
Q: How much money will be required four years from today to repay a ₱2,000 loan that is made today at…
A: The money required to pay after four years can be calculated as the future value of loan
Q: What would be the value of a savings account started with $1,200, earning 3 percent (compounded…
A: We need to calculate the value of the account after 10 years by using future value of a single…
Q: If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You invest $150 each month in a savings plan for a period of 30 years. If you earn an interest rate…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due one…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…
A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…
Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…
A: Given:
Q: You borrow $3,000 at an annual effective discount rate of 6% for two years. How much extra money do…
A: Time value of money(TVM) means the amount of money received in the present period will have more…
Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…
A: Future Value is the value of the current assets or some amount that is invested today and amount…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- If you borrow $2,700 at 8% simple interest per year for five years how much will you have to repay at the end of five years? Choose the correct answer below. O A. $1,267 O B. $3,780. O C. $1,080 O D. $2,700 O E. $3,967You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%? a. $1,245.61 Ob. $1,067.95 Oc$1,311.17 d. $1,124.16 Oe. $1,183.33You are going to deposit $3,500 in an account that pays .61 percent interest per quarter. How much will you have in 7 years? Multiple Choice $4,124.57 $4,154.34 $4,143.38 $4,149.73 ☐ $4,175.05
- You lend a friend $50,000. Your friend will repay you in 6 equal annual end-of-year payments of $12,000. You will receive the first payme one year from now. What rate of return does your loan earn? 14.86% 12.50% 11.53% 6.00%If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end up paying? O 6.77% O 5.25% O 9.67% 8.33%How would be the principal amount of loan if you need to borrow $300,000 for one year with a discount loan of 8%? * O 3750000 O 411764.7 O 375000 O 24000 O 326086.96
- You're borrowing $6,000 for 4 Years with a stated simple interest annual interest rate of 8.5%. How much will be the total payback for this loan? $8,040 $26,000 O $7,530 $7,296If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4 years. The amount of the annual payment is: Select one: а. $1169.85 b. $1400 c. $1313.9 d. $1240Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:a. $4280b. $3975c. $3850d. $2335
- You need to have $20,000 for a down payment on a house 4 in years. If you can earn an annual interest rate of 3.8 percent, how much will you have to deposit today? Multiple Choice $16,597.52 $15,404.53 $17,228.23 $16,707.18 $16,900.24Suppose you borrowed $14,000 at a rate of 9.7% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in the first year? Group of answer choices $1,428.12 $1,303.32 $1,211.50 $1,158.33 $1,358.00A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer. a. $1,903.81 b. $1,885.91 c. $1,850.11 d. $1,832.21 e. $1,868.01