Question

1)Draw and upload a PDF file of a cash flow diagram for a loan with annual payments over 5 years. Draw this diagram from the borrower's point of view.

2)You have offered your friend a $15,000 loan with 7% simple interest per year for 8 years. How much interest will you earn on the loan?

3)You are earning interest on money in your bank account at a rate of 4% compounded annually. If you deposit $7,000 in the account for 7 years, how much ineterst will you earn?

Answer 1

Answer 2

-Draw the cash flow diagram of a person who borrows $ 150,000 today at a simple rate of
2.25% per month. It pays the interest due at the end each month from month 1 to
3, then it does not continue to pay interest and pays the full debt (interest
due plus original principal) in month 8.