Answered: If you borrowed $2400 at an annual…

If you borrowed $2400 at an annual simple interest rate of 5.75%, how much would you owe altogether at the end of 3.5 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Suppose you borrow $8500 for a term of five years at a simple interest and 8.25% APR. how much is…

A: Interest is the cost of borrowing the money.

Q: Suppose you take out a 30 year mortgage for $ 200000 at 8.5% interest. The monthly payments on this…

A: Here,

Q: You borrow $275,000; the annual loan payments are $36,687.93 for 30 years. What interest rate are…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: The following is selected information related to Tamarisk, Inc. at December 31, 2022. Tamarisk, Inc.…

A: Stockholder's equity is one of section which is reported under liabilities & equity side of…

Q: Suppose you have $1500 in your savings account at the end of a certain period of time. You invested…

A: Interest Earned = $1500 -$1100 Interest Earned =$400

Q: Suppose you have $1700 in your savings account at the end of a certain period of time. You invested…

A: Simple interest doesn't take compounding into consideration.

Q: Suppose you secure a $250,000 mortgage loan to be paid off over 30 years at an annual interest rate…

A: Calculator steps: I/y = rate = 7.1%/12 = 0.5916667% NPER = Number of periods = 30*12 = 360 PV =…

Q: Use the compound interest formula A=P(1+r/n)to the not to complete this problem. If you invest $1800…

A: Use the compound interest formula A=P(1+r/n)^(n*t) = final amount = Initial Principal =…

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 money will you have available to you after five years if you put aside $100.00 a month in…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Suppose you borrowed $50,000 at a rate of 8.5% and must repay it in 5 equal installments at the end…

A: Time value of money technique explains the concept that rupee received today is worth than the rupee…

Q: 2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent…

A: 2 (A) $126,247.7 (B) $1,27,048.9 (C) $126,898.6

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: ou borrow $210,000; the annual loan payments are $18,653.76 for 30 years. What interest rate are you…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: Suppose you have $1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 0%…

A: The maturity amount of a certificate of deposit can be calculated using the compound interest…

Q: You have paid $1,000 for an investment that will pay back $1,200 in 3 years. What interest rate does…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: You borrow $90,000; the annual loan payments are $12,852.25 for 30 years. What interest rate are you…

A: Interest : It is the total amount payment on loan taken or fund borrowed by any person . it may be…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: A mortgage is a property loan given by banks to their customers for purchasing a house or other real…

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

Q: Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: If a person has taken a home loan of 50000 TL with an annual effective interest rate of 12% and his…

A: A home loan is taken in order to finance the purchase of a house. The borrower makes regular…

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 $2,200 and agree to repay the loan in five equal annual payments at an interest rate…

A: Loan means lending money by one or more individuals or organizations to other individuals or…

Q: Suppose you take a 30-year fixed-rate mortgage loan for $600,000 with a mortgage rate of 6%.

A: in this we have to calculate annual payment and than find out how much is paid and how much is…

Q: How much would you have to pay each year to pay off a 5%, 7-year loan of $300,000?

A: In the given question we require to calculate the annual payment to pay off the loan of $300000 in 7…

Q: a) How much are you going to pay at the end of 2 years at a simple interest rate of 12% per year? b)…

A: Simple Interest: It is the easiest method of computing interest loans. It is computed by…

Q: What is the effective annual rate on the loan? (i.e., what is the interest rate once we take into…

A: Information Provided: Amount Borrowed = $400,000 Term = 30 years Fixed APR = 3.87%

Q: Suppose a Bangko Sentral ng Pilipinas bond will pay P500,000 twelve years from now. If the going…

A: Bond worth today = Present value of the bonds where, Present value of the bonds = Amount to be…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: Suppose you intend to purchase a house worth $239,900 with a 30-year fixed rate mortgage. You have a…

A: Solution: When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You are considering taking out a loan of $17,000.00 that will be paid back over 5 years with monthly…

A: Here,ParticularsValuesLoan amount (PV) $ 17,000.00Term of loan 5.00Number of months in a…

Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

If you borrowed $2400 at an annual simple interest rate of 5.75%, how much would you owe altogether at the end of 3.5 years?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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, accounting and related others by exploring similar questions and additional content below.

Similar questions

You borrow $250,000; the annual loan payments are $35,700.70 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.
Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit $12,000 now, how much will you have in the account in 5 years? (Round to the nearest cent.) What was the interest earned? (Round to the nearest cent.) $1 Now suppose that you would like to have $20,000 in the account in 5 years. How much would you need to deposit now? (Round to the nearest cent.)
Suppose you take out a 30 year mortgage for $ 200000 at 7.75% interest. The monthly payments on this loan are $ 1432.82. If you pay an extra 60% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving =
How much money will you have available to you after five years if you put aside $100.00 a month in an account that gives you 6.75% interest compounding monthly?
suppose you obtain a $3000 t-note with a 3% annual rate, paid quarterly, wiht maturityin 5 years. How much interest will you earn?
What is the simple interest rate if Rogine paid an interest of P2,100 after 2 years and 6 months on a P12,000 loan?
Using a compound interest calculator, if you would deposit $10 each week into a savings account that paid a compound interest rate of 3.75% each year compounded monthly, how much would you have in your account in five years?
You borrow $280,000; the annual loan payments are $24,871.68 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. %
4. Suppose $5,000 is deposited in a savings and loan account that pays 5.5% interest compounded semiannually. Use compound interest to calculate the following:a. How much money will be saved?b. How much will be owed after 2 years?
If P dollars is borrowed at a rate or r per year to be paid back in tyears, the monthly payment (n=12) is given by the formulaA =((r/n)P)/ (1 − (1 + r/n)−nt450, 000.00 is borrowed to buy a house. The annual interest rate is 7.04%. Whatis the monthly payment if the term of this transaction is 30 years.
Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this loan are $ 1730.06. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving = If you put $ 1730.06 per month into an annuity earning 10.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?Extra savings =
1.1) For $20,000, you can purchase a five-year annuity that will pay $5000 per year for five years. The payments occur at the end of each year. a) Calculate the effective annual interest rate implied by this arrangement. 1.2) If you invest $1000 at 11% APR for five years, how much would you have at the end of 5 years? a) Calculate using simple interest. b) Calculate using compound interest.