Homework Answers
1) P = A(P/A, i%, n)
here in this case P =$85000, i = 1% n= 18
thus A = P/(P/A, 1%, 18)
= 85000/(16.398)
= $ 5183.5590 (required monthly payment )
required payoff on the 7th month is:
5183.5590 + 5183.5590 (P/A, 1%, 7)
= 5183.5590 + 5183.5590 (6.728)
= $ 40058.544
Hence, the required payoff on the 7th month is $40058.544
Add Answer to:
1. A loan for $85,000 is to be paid in 18 monthly payments with a rate...
A loan is amortized over 7 years, with monthly payments at a nominal rate of 9.5% compounded monthly. The first payme...
A loan is amortized over 7 years, with monthly payments at a nominal rate of 9.5% compounded monthly. The first payment is $1000, paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior one. What is the outstanding balance immediately after the 30th payment is made?
The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan...
The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years, calculate the size of the annual payments. O $1,314 O $17,492 O $16,187 O $9,599 $13,084
(1 point) Recall that the formula for a simple interest amortized loan, with initial loan value Vo, monthly payments of size m, with interest compounded n times per year for t years at annual interes...
(1 point) Recall that the formula for a simple interest amortized loan, with initial loan value Vo, monthly payments of size m, with interest compounded n times per year for t years at annual interest rate r is rtn.t rt Ben buys his $230,000 home and, after the $40,000 down payment, finances the remainder with a simple interest amortized loan. Ben can pay at most $1,200 per month for the loan, on which the lender has set an annual rate...
5. A college student borrows $1500 during her senior year. The loan is to be paid pack in equal monthly payments startin...
5. A college student borrows $1500 during her senior year. The loan is to be paid pack in equal monthly payments starting three years after the loan is established (interest accumulates during the grace period). The APR is 2.8% compounded monthly. How much should she expect to pay per month if she only wants to have to make payments for 2 years? 6. Mary has a credit card balance of $4,300 at an APR of 12% compounded monthly. Mary has...
James wants to take out a loan. He can afford to make monthly payments of 100...
James wants to take out a loan. He can afford to make monthly
payments of 100 dollars and wants to pay the loan off after exactly
30 years.
What is the maximum amount that James can afford to borrow if
the bank charges interest at an annual rate of 8 percent,
compounded monthly?
(Give your answer, in dollars, correct to the nearest
dollar.)
Nicola borrows 60000 dollars from a bank that charges interest
at an annual rate of 10 percent,...
Question 11 of 13 Lush Gardens bought a new truck for $85,000. It paid $10,000 as...
Question 11 of 13 Lush Gardens bought a new truck for $85,000. It paid $10,000 as a down payment and financed the balance at 4.50% compounded monthly. If the company makes payments of $1,650 at the end of every month, how long will it take to pay off the loan? year(s) + month(s) Round up to the next payment period. Give your answer in years and months.
Monthly payments were originally calculated to repay a $38,000 loan at 8.8% compounded monthly over a...
Monthly payments were originally calculated to repay a $38,000 loan at 8.8% compounded monthly over a 13-year period. After one year, the debtor took advantage of an option in the loan contract to increase the loan payments by 15%. How much sooner will the loan be paid off? (Do not round intermediate calculations. Round up the number of payments.) The loan will be paid off year(s) and month(s) sooner.
Create an amortization table for a 25-year mortgage loan that has monthly payments. The values in...
Create an amortization table for a 25-year mortgage loan that has monthly payments. The values in the input range should be loan face value ($500,000), APR (4.5%), and monthly prepayment amount ($100). Make sure the spreadsheet is fully interactive, so the entire sheet correctly updates when a change in any input is made Add a column to the right of the table developed in (a), to keep track of the month that the loan is paid off after taking prepayments...
Consider a loan of $1 million that is paid off monthly over a period of nine...
Consider a loan of $1 million that is paid off monthly over a period of nine years. Calculate the dollar amount of interest you pay at the first month of repayment if the interest rate is 6% per year, compounded monthly.
Consider a loan of $1 million that is paid off monthly over a period of nine...
Consider a loan of $1 million that is paid off monthly over a period of nine years. Calculate the dollar amount of interest you pay at the first month of repayment if the interest rate is 6% per year, compounded monthly.
The interest rate charged on a loan of $85,000 is 7.75% compounded annually. If the loan is to be paid off over seven years, calculate the size of the annual payments. O $1,314 O $17,492 O $16,187 O $9,599 $13,084
(1 point) Recall that the formula for a simple interest amortized loan, with initial loan value Vo, monthly payments of size m, with interest compounded n times per year for t years at annual interest rate r is rtn.t rt Ben buys his $230,000 home and, after the $40,000 down payment, finances the remainder with a simple interest amortized loan. Ben can pay at most $1,200 per month for the loan, on which the lender has set an annual rate...
James wants to take out a loan. He can afford to make monthly
payments of 100 dollars and wants to pay the loan off after exactly
30 years.
What is the maximum amount that James can afford to borrow if
the bank charges interest at an annual rate of 8 percent,
compounded monthly?
(Give your answer, in dollars, correct to the nearest
dollar.)
Nicola borrows 60000 dollars from a bank that charges interest
at an annual rate of 10 percent,...
Question 11 of 13 Lush Gardens bought a new truck for $85,000. It paid $10,000 as a down payment and financed the balance at 4.50% compounded monthly. If the company makes payments of $1,650 at the end of every month, how long will it take to pay off the loan? year(s) + month(s) Round up to the next payment period. Give your answer in years and months.
Most questions answered within 3 hours.
-
The US Census Bureau gathered data regarding yearly gas sales
for residents of different states. Wyoming...
asked 11 minutes ago -
A person in a casino decides to play blackjack until he loses a
game, but he...
asked 15 minutes ago -
mode field diameter (MFD) is an important parameter in
characterizing single mode fibre properties which takes...
asked 6 minutes ago -
Question 4: What is the significance of those strange
“36.79%” and “63.21%” numbers the procedure? That...
asked 11 minutes ago -
Rules of implementation!:
You may NOT modify any of the files except Expression.java in
ANY way....
asked 13 minutes ago -
Arbitration of disputes under the purview of "lemon laws" under
state statute is:
not required by...
asked 27 minutes ago -
Describe three pieces of evidence that mitochondria and evolved
from symbiotic mutualisms between a eukaryote (or...
asked 34 minutes ago -
An AM transmitter with a carrier power of 20 kW is connected to
a 50 Ω...
asked 42 minutes ago -
JAVA
Beginnings of a paper-rock-scissors game.
Paper-rock-scissors is a game often used to make decisions.
There...
asked 47 minutes ago -
Consider a concept learning example of 5 attributes. Attributes
can take one of (5,3,2,2,6) values respectively....
asked 53 minutes ago -
Red light of wavelength 675 nm is incident on a slit of width
4.56 × 10−6...
asked 1 hour ago -
An object 4.0 mm high is on the optical axis of two lenses with
focal lengths...
asked 1 hour ago