Joe borrowed $100,000 from a local bank, which charges him an interest rate of 7% per year. If Joe pays the bank $8,000 per year, how many years will it take to pay off the loan?

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: Aaron is planning to buy an apartment. He earns a monthly income of RM40,000 and plans to put aside…

A: The is based on the calculation of mortgage loan and value of property as per eligibility of loan .…

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Tom borrowed 300,000 for his son Remy's law school tuition at the University of Missisippi. Tom…

A: We need to use Simple interest formula to calculate maturity value of loan. A =P(1+r*t) where A=…

Q: Roger just deposited $12,000 into his account at Market Place Bank. The bank will pay 3.2 percent…

A: in this we have to find out simple interest and compounding interest and than find out interest on…

Q: Chris decides to take out a loan for $60, 000 for 6 years at 5% monthly. If he pays an extra $200…

A: Here,LoanAmount is $60,000Time Period is 6 yearsInterest Rate is 5%Compounding Period is Monthly i.e…

Q: Gabriel is able to save 10,000 pesos every month from his salary. If he decides to invest in a…

A: >Future value of any amount invested is the sum total of amount invested and the interest earned…

Q: 2. Andy is planning to buy a car when he graduates from college 4 years from now. The estimated…

A: One-time simple interest is often used for very relatively brief loans. Interest is often…

Q: Georgia applied for a home mortgage of 75,000 to finance the purchase of a new home for 30 years.…

A: Loan amount (PV) = 75,000 Annual interest rate (r) = 14% Number of annual payment (n) = 30

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: George is a 22 year old college student who wants to start saving for retirement. He decides to…

A: Future value refers to the value of current asset at some future date affected by interest or…

Q: Pete Leary wants to attend College. Seven years from today he will need $30,000. If Pete's bank pays…

A: Present value refers to the current amount of the future payment in a specified period of time. It…

Q: Craig decides to purchase a property that has been valued at $475,000. He has $80,000 available as a…

A: Value of property = $475,000Available deposit = 80,000Mortgage year = 25 yearsInterest = 2%

Q: If John deposits $5,000 in a bank account that pays simple interest of 4%, how much will I have in…

A: Data given: Amount deposited= $5000 Interest=4% p.a. t=7 years

Q: Jack borrows $28,163 to pay for a car. The loan carries an annual rate of 5.7% and he wants to be…

A: ANSWER: Interest on loan = $6,021.6163328  (or) $6,022 EXPLANATION:- Present Value (PV) = $28,163…

Q: Arnold is planning to buy a house in 7 years. He plans to invest Rs. 425,000 in a fixed deposit with…

A: Investment period = 7 years Investment amount = 425,000 Interest rate = 12.05%

Q: Pedro buys a condo for $629,000, with a down payment of $40,000. He takes out a 30-year mortgage for…

A: Loan amount (P) = $589,000 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period of…

Q: Charles has just taken on the conditions of the loan, he must make payments of $1,200 per year for…

A: Amount of loan is the present value of the annual payments of the loan based on the time and…

Q: Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in…

A: The objective of the question is to understand the cash flow, calculate the quarterly payment and…

Q: Kent owes $38000 with an interest rate of 4% in the student loans. If the loan will be paid after 2…

A: If the loan is a bullet loan that has to be paid at the end in a single payment then, the interest…

Q: Martin is buying a house for $325,000 and he has 15% for a down payment. Find the monthly payment…

A: Given:  Price of house = $325,000  Down payment = 15%  Interest rate = 5.75%  Term =30 years    The…

Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…

A: Loan amortization refers to the process of paying off a loan over time through regular payments that…

Q: Jonathon wishes to buy a used Chevy Malibu for $12,500. He only has $1,000 for a down payment so the…

A: Computation as follows: Therefore, the payment amount and total interests are $286.18 per month and…

Q: Mr. Park plans to loan 500,000 from a bank to replace his old equipment. The bank approved him the…

A: Here, Loan Amount is 500,000 Interest Rate (r) is 15% Compounding Period (m) is Monthly i.e 12 Time…

Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Ali buys an apartment for RM150,000. He makes a 10% down payment and finances the balance through…

A: Loan amount (L) = Price - Down payment = 90% of RM 150000 = RM 135000 Monthly payment (M) = RM…

Q: imana wants to buy a two bedroom apartment in Rockycrest for N$680000. he is expected to pay 9%…

A: To calculate the total amount of money Imana will pay to the bank over 22 years, we need to break…

Q: Kiran has already saved $575,000 as a deposit for a new waterfront villa in the Hamptons. It will…

A: Monthly mortgage paymentA monthly mortgage payment is the regular amount of money you pay to a…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Future value is the value of the future cash flows being compounded at a predefined rate of interest…

Q: Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4%…

A: The term "future value" typically refers to the value of an investment or amount of money at a…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Bruce is paying $25,000 each year on his mortgage with 10 years of payments left and the next…

A: An installment amount is a periodic amount paid to repay a loan. The installment amount includes…

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Rapi Tulpo invests Php1,000 in a Bank that doubles his money in five years. To what annual interest…

A: Investment means an asset(financial assets or fixed assets) that is purchased to generate additional…

Q: Milo borrows $5.000 from an institution that charges 8.5% interest per year. How much more will Milo…

A: Loan are amount borrowed from the financial institution and is the amount charged above the loan is…

Q: Lucky Louie wants to buy a car that costs $26,750. The interest rate on his loan is 5.33 percent…

A: Car cost = 26750 Interest on loan = 5.33% Years = 7 Compounded = Monthly  PMT find out using Excel:…

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: A mortgage is a loan that is taken out with the intent to purchase a property. The property in…