Question 7You want to borrow R10,000 from a local bank, which is to be repaid in 2 equal semiannualinstallments. The loan officer initially offered an interest rate of 12% compounded monthly.However, you were able to negotiate that interest to be compounded semiannually instead ofmonthly. With this negotiation, how much do you save in total interest payments over the loanlife?R10000semiannualperiods

The compounded value can be calculated using the below-drawn formula: Compound interest (FV)…

Answered: Question 7 You want to borrow R10,000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Roy borrowed a certain amount on June 1990 from Roland. Two years later, Roy borrowed again from Roland an amount of P 7,500. Roy paid P 1,600 on June 1993 and discharged his balance by paying P 11,250 on June 1995. What was the amount borrowed by Roy on June 1990 if the interest rate is 9% compounded annually?
Description At a certain interest rate compounded semi-annually, P5,000 will amount to P20,000 after 10 years. What is the amount at the end of 15 years?
A geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)
King Richards deposit of Php 495 earns 3% interest compounded annually. How much money is in the bank after for 3 years?
K How much money should be deposited annually in a bank account for five years if you wish to withdraw $6,000 each year for three years, beginning five years after the last deposit? The interest rate is 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i=2% per year. The annual deposit amount should equal $ per year. (Round to the nearest dollar.)
Compound interest is a very powerful way to save for your retirement. Saving a little and giving it time to grow is often more effective than saving a lot over a short period of time. To illustrate this, suppose your goal is to save $1 million by the age of 70. What amount of money will be saved by socking away $3,038 per year starting at age 23 with a 7% annual interest rate. Will you achieve your goal using the long-term savings plan? What amount of money will be saved by socking away $20,406 per year starting at age 48 at the same interest rate? Will you achieve your goal using the short-term savings plan? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The future equivalent of the long-term savings plan is $. (Round to the nearest dollar.) C
If I loaned P165,796 today and promised to pay it back after 5 years to the bank with monthly payments that starts also by the time I received my loaned amount with an interest rate of 10.46% compounded monthly. What is the monthly amount I must set aside to pay for this loan?
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