Joel borrows $60,000 at 7% interest per year for a 10-year period. He can make payments of $450 at the beginning of each month until the loan is closed. He plans on making a balloon payment at the end of the period. What is the expected size of the balloon payment?

Q: Consider a uniform series of cash flows.  The first cash flow of $10,000 occurs at time 10 and the…

A: A cash flow is the movement of funds over a predetermined time period into or out of the financial…

Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…

A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…

Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?

A: here we calculate the interest earned by simple interest so the calculation as follow-

Q: Assume you borrow $30,000 today at a rate of 13%. The loan will be returned over a five-year period,…

A: To calculate the annual payment for a loan using a spreadsheet, use the PMT function in Microsoft…

Q: You have selected an account that yields 3.85% compounded monthly to invest the $4,051,948 that you…

A: The effective annual interest rate (EAR), also called the annual percentage yield, means the true…

Q: The price of a Universal Testing Machine doubles in  15 years. What is the compounded yearly…

A: The future value formula is given as:  F = P(1+R)n Where P : present valueF : future valueR : Rate…

Q: Compared the interest earned by $13,000 for seven years at 8% simple interest with interest earned…

A: Given:  Principal amount ( P) = $13,000 Interest rate(r) = 8% Time(t) = 7 years

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Principle Amount =  $ 10,000 Interest rate = 12%                          = $1200 Loan amount =…

Q: The price of a Universal Testing Machine doubles in 15 years. What is the compounded yearly interest…

A: Given that,    Principal (P): $1000(let assumed) Total P+I (A): $2,000(let assumed) Time (t in…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The compound interest formula for semi annual basis is as follows: A=P(1+rn)nt Where,  A is the…

Q: How many months will it take to pay off a $525 debt, with monthly payments of $15 at the end of each…

A: Mortgage installments are regular payments made by borrowers to lenders to repay a mortgage loan.…

Q: What is the effective interest rate per month if the interest rate is 9% compounded continuously?

A: The effective interest rate refers to the rate of interest that paid on an investment after to take…

Q: Sergio can afford a maximum of $1750 per month for mortgage payments. Given an annual interest rate…

A: Given information,  Maximum affordable cost = $1750 Interest rate = 4.95% Time = 15 years

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Nominal rate of interest (r) =8% compounded quarterly.Withdrawal at the end of the 4th quarter is…

Q: How many years will it take an investment to triple if the interest rate is 8% compounded annually…

A: When an amount is compounded annually, interest keeps added on for the compounding year after year.

Q: How long will it take money to quadruple itself if invested at 13% compounded annually?

A: Money quadruples meaning current value becomes four time in n years.

Q: Which is the better investment, a fund that pays 5% compounded annually or one that pays 4.8%…

A: Discretely compounded interest is determined and added to the head at explicit spans (e.g., every…

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: An effective annual rate of interest refers to the real return on a savings account with the…

Q: Consider a 30,000 dollars investment which has an annual interest rate of 10%. What is the value at…

A: In the mentioned question, we are given the investment and annual interest rate. With the given…

Q: If you borrowed $32,000 for 72 months at 16.5% with an add-on loan, what would be your monthly…

A: Principal Amount ((P)) = $32,000- Annual Interest Rate ((r)) = 16.5%- The loan term ((t)) is 72…

Q: ind the equivalent effective interest rate of 6.05% when compounded continuously.   Write your…

A: Given  nominal interest rate i=6.05% compounded continuously. We have to calculate the equivalent…

Q: Suppose you want to withdraw $30,000 at the end of year 3 and another $30,000 at the end of year 5.…

A: When money is put somewhere, interest is accrued. Principal value refers to the original deposit,…

Q: Someone deposits $3,500 in their retirement account every year. If their account pays an average of…

A: Given data Some one deposits = $ 3500 Intrest rate = 6% FV of her deposit = PV of her 20…

Q: Compound interest is a very powerful way to save for your retirement. Saving a little and giving it…

A: Formula for the future value of annuity is given as:

Q: Lisa has a bank loan for $50,000 to pay for her apartment loan. This loan is to be repaid in equal…

A: Monthly compound interest-it means that the interest is added back to the principle each month.…

Q: How long does it take an investment of P300,000 to double if it invested at 10% interest compounded…

A: The future value of a given amount invested is a function of interest rate, periods of investment,…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Given: Annual interest rate = 7% Interest is compounded semi-annually. Hence, i (rate per period) =…

Q: If you had BD 4,500 now and invested at 13% interest compounded annually, how much would it be worth…

A: Investment Amount = 4500 r = 13% n = 8

Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…

A: Given: Amount=$100 Interest rate=8% Number of years=5 To find: Amount at end of 5 years

Q: If you invest $150,000 at an interest rate of 10% compounded annually, what is your total balance…

A: The interest rate is the income earned by the investment in the economy. When the money is invested…

Q: At a certain interest rate compounded quarterly, P1T will amount to $5T in 10 years. What is the…

A: Given  Present value P=$1T Future value F= $5T Time = 10 years We have to calculate the rate of…

Q: You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment…

A: Simple interest refers to the borrowing cost of money without consideration for the effects of…

Q: How many quarters will it take to triple an initial investment at an interest rate of 14% compounded…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the…

Q: If the interest rate is 7% compounded continuously, what is the required quarterly payment to repay…

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…

Q: Identify the number of times interest calculated in a year if the interest is compounded every three…

A: when the interest rate is compounded every 3 months then it has to be calculated for 4 times in a…

Q: mon is planning to retire in 20 years. He wishes to deposit a regular amount every six months until…

A: Retirement in 20 years After Retirement = 80,000 for 10 years r = 8%

Q: Calculate the future value (F) for the cash flows at the end of each year over a four-year period,…

A: We have,Period of cash flows=4 yearsDiscount Rate for first 2 years=10%Discount Rate for remaining 2…

Q: the desired accumulated amount is $70,000 after 14 years invested in an account with 2% interest…

A: