ohn paid $500 per month for 20 years to pay off a mortgage on his house. If his down payment was $5,000 and interest rate was 6% compounded monthly, what was the purchase price of this house?

Q: Find the nominal interest compounded quarterly equivalent to 12.00% effective interest?

A: Effective annual interest rate is rate that is regarded as the real return on a loan or savings for…

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: Given,  Quarterly Deposit= $1,250 Monthly Interest Rate=6% Therefore, Quarterly Interest Rate=…

Q: Explain the true effect of more frequent compounding on annual interest amounts?

A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…

Q: How long will it take money to double itself if invested at 10% compounded annually?

A: Compound interest formula: F = P (1 + r)n Where F is the future value P is principal value r is…

Q: Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable…

A: To find the percentage of interest paid on the loan, we need to calculate the total interest paid…

Q: You want to buy a $32,000 car.  You can finance the car for 1.5% interest for 6 years. What is your…

A: The formula for monthly payment is calculated as follows: Monthly payment = Pr121+r12n1+r12n-1 where…

Q: A bank sales a pledge of savings certificate of 500,000$ to pay 10 years later. to a 4% continuous…

A: The information which has been given to us is as follows:-   Future value is $500,000 n is given to…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate

Q: Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments…

A: Monthly PITI (Principal, interest, tax , insurance) = monthly PI + Monthly tax + monthly insurance…

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: b. How much would you expect to pay per month on a $20,000 auto loan if you pay the loan back for 48…

A: Given, Loan amount (A) = $20,000 Time period = 48 months Interest rate = 10% = 0.10 and monthly…

Q: Compute the present value of $1500 received at the end of ten years’ time given monthly compounding,…

A: Given information is: Future value (FV)= $1500 Interest rate (r)=1% Compounding period (n)=12 Time…

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: Tom has the opportunity to purchase an investment that will pa $30,000 in 5 years. The purchase…

A: here we can calculate the present value and know the is tom purchase or not which are as follow-

Q: Jack promises to pay $1000 at the end of 6 months in obtaining a loan from a banker B who charges 6%…

A: Annual interest rate can be calculated by using the following formula.

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: If P5,000 is invested for 10 years with an interest rate of 8%, compounded quarterly, what will the…

A:

Q: For the next 15 years, you will deposit $1,500 every month in a savings account. The account pays 6%…

A: An ordinary annuity is a series of equal payments made at the end of each period, such as the end of…

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

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity…

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

Q: Mary Smith took out a loan of $75,000. The loan runs for five years at a minimum interest rate of…

A: here we calculate how much is each monthly payment to Mary Smith by following method given below

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: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.

A: Future value is calculated by the following formula when there is a simple interest rate. FV = P(1 +…

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: How can we calculate the effective interest rate, altering the period value?altering the period…

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

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: Ms. Roberts decided to invest some money in an insurance company with an interest rate of 9%…

A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate

Q: You want to borrow $41,611. You must repay the loan in 13 years in equal monthly payments and a…

A: Loan amount (PV) = $41,611 Term of loan = 13 years Interest rate = 15% nominal per year

Q: Two $200 payments at the ends of the third and fourth years would be worth how much today? if there…

A: Present value is different from the future value because the present value is the amount that is…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: Derek borrows $294,333.00 to buy a house. He has a 30-year mortgage with a rate of 5.79%. After…

A: The term mortgage refers to a loan used to purchase or maintain a home, land, or other types of real…

Q: If you borrow $ 30,000 at 6% simple interest per year for seven years, how much will you have to…

A: Simple Interest = (Principal * Rate * Time) / 100 ie SI = (P * R * T) / 100 Amount = Principal +…

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: Calculate the total interest earned, if you save $68 each month, Starting today, for 11 more…

A: Here's how to calculate the total interest earned on your savings:1. Define variables:Monthly…

Q: If you save $1,000 today and the annuel interest rate is 6%, what will that money be worth in 40…

A: Given, P = $1000 i = 6% t = 40