Using the practical method, how much money will be required on December 8, 2011, to repay...
Using the practical method, how much money will be required on December 8, 2011, to repay a loan of $2000 made on August 24, 2009, if interest on the loan is earned at 3.0%/year compounded monthly?
Homework Answers
Solution:-
Formula for calculating future value is as follows:-
FV= PV*(1+r)n
where,
PV= initial amount
r= rate of interest per compounding period
n= no. of compounding periods
In the given question, we have the following data:
PV= $2,000
r= 3%/12 = 0.25% per month
n= 27.5 months
Hence,
FV= 2,000*(1+0.25%)27.5
FV= $2,142.15
Therefore, $2,142.15 will be required to pay off the loan on Dec 8, 2011.
Add Answer to:
Using the practical method, how much money will be required on
December 8, 2011, to repay...
on present value of annuity sheila davidson borrowered money from her credit union and agreed to...
on present value of annuity sheila davidson borrowered money
from her credit union and agreed to repay the loan in blended
monthly payments of $161.75 over a 4 year period. interest on the
loan was 9% compounded monthly
Business Math 2 G6 e https//clansroom.google.com/1//MauoOTO3MOYEMDa c) How much interest will there be? On present value of annuity Sheila davidson borrowed money from her credit union and agreed to repay the loan in blended monthly payments of $161.75 over a 4 year...
Capital Recovery-Perpetual 4. With interest at 8% compounded annually, how much money is required today to...
Capital Recovery-Perpetual 4. With interest at 8% compounded annually, how much money is required today to provide a perpetual income of $14,316 per year? Geometric Series 5. A new machine was bought for $9,000 with a life of six years and no salvage value. Its operating cost begins in year one in $7,000 and will increase by 5% every year. If the MARR =12% what is the annual equivalent cost of the machine? Simple Interest 6. If you borrow $3,000...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
QUESTION 4 With an interest rate of 1 2%, how much money can be lent now...
QUESTION 4 With an interest rate of 1 2%, how much money can be lent now if $13,000 will be repaid at the end of 4 years? QUESTION 5 With an interest rate of 19% compounded annually, how much will be required in 13 years to repay a $34,000 loan received today?
3) How much money should be invested at 8% per year so that after 2 years...
3) How much money should be invested at 8% per year so that after 2 years the amount will be $10,000 when the interest is compounded monthly?
Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 4%/a, compounded monthly. (14 marks) Create an amortization table using a Microsoft Excel spreadsheet. In y
Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 4%/a, compounded monthly. a. Create an amortization table using a Microsoft Excel spreadsheet. In your answer include all the formulas used.b.How long will it take to repay the loan?c. How much will be the final payment?d. Determine how much interest she will pay for her loan.e. Use Microsoft Excel to graph the amortization...
How much money does Matthew have to repay each period if he borrows $248746 for 14...
How much money does Matthew have to repay each period if he borrows $248746 for 14 years at 11% p.a. in interest compounded every 6 months Provide your answer to two (2) decimal places and do not include '$' signs, commas or full stops (periods).
3) How much money should be invested at 8% per year so that after 2 years...
3) How much money should be invested at 8% per year so that after 2 years the amount will be $10,000 when the interest is compounded monthly? 4) To save for his son's college education, Mr. Graff decides to put $50 aside every month in a credit union account paying 10% interest compounded monthly. If he begins this saving program when his son is 3 years old, how much will he have saved by the time his son is 18...
1. What monthly payment is required to amortize a loan of $50,000 over 14 years if...
1. What monthly payment is required to amortize a loan of $50,000 over 14 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.) $ 2. The Flemings secured a bank loan of $368,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations...
Please show the work, thanks! 8. Herman has agreed to repay a debt by using the...
Please show the work, thanks!
8. Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he will make $100 payments at the beginning of each month for the next two-and-a-half years. He will then pay nothing for the next two years. Finally, after four-and-a-half years, he will make $200 payments at the beginning of each month for one year, which will pay off his debt completely. For the first four-and-a-half years, the interest on...
on present value of annuity sheila davidson borrowered money
from her credit union and agreed to repay the loan in blended
monthly payments of $161.75 over a 4 year period. interest on the
loan was 9% compounded monthly
Business Math 2 G6 e https//clansroom.google.com/1//MauoOTO3MOYEMDa c) How much interest will there be? On present value of annuity Sheila davidson borrowed money from her credit union and agreed to repay the loan in blended monthly payments of $161.75 over a 4 year...
Capital Recovery-Perpetual 4. With interest at 8% compounded annually, how much money is required today to provide a perpetual income of $14,316 per year? Geometric Series 5. A new machine was bought for $9,000 with a life of six years and no salvage value. Its operating cost begins in year one in $7,000 and will increase by 5% every year. If the MARR =12% what is the annual equivalent cost of the machine? Simple Interest 6. If you borrow $3,000...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
QUESTION 4 With an interest rate of 1 2%, how much money can be lent now if $13,000 will be repaid at the end of 4 years? QUESTION 5 With an interest rate of 19% compounded annually, how much will be required in 13 years to repay a $34,000 loan received today?
3) How much money should be invested at 8% per year so that after 2 years the amount will be $10,000 when the interest is compounded monthly?
3) How much money should be invested at 8% per year so that after 2 years the amount will be $10,000 when the interest is compounded monthly? 4) To save for his son's college education, Mr. Graff decides to put $50 aside every month in a credit union account paying 10% interest compounded monthly. If he begins this saving program when his son is 3 years old, how much will he have saved by the time his son is 18...
Please show the work, thanks!
8. Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he will make $100 payments at the beginning of each month for the next two-and-a-half years. He will then pay nothing for the next two years. Finally, after four-and-a-half years, he will make $200 payments at the beginning of each month for one year, which will pay off his debt completely. For the first four-and-a-half years, the interest on...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago