You are considering borrowing $100,000 at a compound annual interest rate of 9%. The loan agreement calls for 30 equal annual payments, to be paid at the end of each year of the next 30 years (payments include both principal and interest). What is the annual payment that will fully amortize the loan?

Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…

A: Compounding interest means the interest is calculated for the principal and after each period the…

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: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A:

Q: In one instance, a financial institution loaned you $60,000 for two years at an APR of 5.75% for…

A: First instance: Given , Principal = $60000 APR = 5.75% Time period = 2 years Thus, simple interest =…

Q: If you want to buy a car in two years that cost $20,000.00, how much should put away every month if…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

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: Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to…

A: Interest rate per month can be calculated as follows: Thus, the interest rate is 0.67%

Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…

A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…

Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…

A: Mortgage amount and number of years can be calculated as follows:

Q: One invested $10,000 five years ago. The first three years, the investment earned 12% compounded…

A: here we calculate the amount of money accumulated in five years as follow;

Q: How long will it take for an investment with an annual rate of return of 6% compounded annually to…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: answer to the nearest cent.)

A: P.V = cash flow/(1+r)0 + cash flow/(1+r)1 + cash flow/(1+r)2 --------------‐--- + cash flow/(1+r)25…

Q: What rate of interest compounded annually would result in receipt of $22,110 in seven years from…

A: Compound interest will be computed by multiplying the present value amount by one plus the annual…

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: Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: Assuming an interest rate of 8% compounded annually, how much money will be required in four years…

A: A = P(1+r)n where P is principal amountr is interest rate n is time period

Q: years that is equivalent to a pa starting with $45,000 at the er year and decreasing by $5,00C 10…

A: *Answer:

Q: If the accumulated amount is P11500 at 4% compounded annually. Calculate the principal amount after…

A: Given, Information Amount = P 11,500Rate = 4% or 0.04Time = 7 year

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: have selected an account that yields 4.87% compounded every tl 4,125,000 that you have saved while…

A: *Answer:  Nominal interest rate = 4.87% Interest rate per quarter = 4.87%/4 = 1.2175% Effective…

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: You plan to retire in 30 years and plan to contribute the same amount of money each year to your…

A: The annual withdrawal in the post-retirement period is $100,000. This continues for 20 years and…

Q: a) What is the future value of a series of payments of $6,000 each, at the end of 8 years, at 6%…

A: Ordinary annuity is the equal series of payment is made at constant interval at the end of each…

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: Figure 2 - 4 Graph (a) Graph (b) Panel A. The origin of the axis system is at (0, 0). The curve…

A: The question is asking us to determine which points on the graph represent possible and efficient…

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: Accumulate a $40,000 principal for 15 years under the rate (.05, m 4). What compound interest is…

A: Given information: Principal amount (P): $40,000 Time period (t)= 15 years Interest rate (r): 5%…

Q: You are going to borrow $30,000 to purchase a car.  You agree to repay the loan in 36 monthly…

A: The nominal interest rate is the rate of interest charged on the loan amount. It is the sum total of…

Q: The interest derived from monthly compounding is always __________ that derived from quarterly…

A: Interest is the amount paid in excess of the borrowed amount by the borrower to the lender. The…

Q: Steve promises to pay Amanda $2,000 in four years and another $3,000 four years later  for a  loan…

A: A loan could be considered as a swap of buying power over time between lenders and borrowers. The…

Q: You deposit $100 now, and another $100 at the end of 20 years. The account earns a nominal discount…

A: The formula of future value is F=P1+in Here i is the interest rate per period and n is the number of…