Question

Q3: Suppose that each week, you make a $127 payment toward a 14-year loan whose annual rate is 9.7%. How much was the loan for?

Q4: Suppose that every 4 months, you make a $975 payment toward a 11-year loan whose annual rate is 3%. How much was the loan for?

**Please help me with these ASAP for my math assignment**

Question 3 1 pts Suppose that each week, you make a $127 payment toward a 14-year loan whose annual rate is 9.7%. How much was the loan for? Round your answer to the nearest dollar.

Answer 1

Question 3

Information provided:

Weekly payment= $127

Time= 14 years*52= 728 weeks

Interest rate= 3.7%/52= 0.1865% per week

The question is solved by computing the present value.

Enter the below in a financial calculator to compute the present value:

PMT= 127

N= 728

I/Y= 0.1865

Press the CPT key and PV to compute the present value.

The value obtained is 50,551.23.

Therefore, the loan was for $50,551.23.

Question 4

Information provided:

Weekly payment= $975

Time= 11 years*4= 44 quarters

Interest rate= 3%/4= 0.75% per quarter

The question is solved by computing the present value.

Enter the below in a financial calculator to compute the present value:

PMT= 975

N= 44

I/Y= 0.75

Press the CPT key and PV to compute the present value.

The value obtained is 36,424.76.

Therefore, the loan was for $36,424.76.