Finance question
Mr. Pitkin bought a farm and promised to pay $5425 in 7 years with 7% simple interest and $8675 in 15 years with 10.5% simple interest. Later, Mr. Pitkin met with the lender requesting to pay $5475 at the end of 5 years and to make a final payment at the end of 12 years. Based on simple interest rate of 16.5%, determine the amount required to settle the debt at the end of 12 years.
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Henry borrows $1075 at 10.5% simple interest. He makes a partial payment of $200 at the...
Henry borrows $1075 at 10.5% simple interest. He makes a partial payment of $200 at the end of 12 month(s), and a partial payment of $400 at the end of 16 months. Determine the amount required to settle the debt at the end of 22 months using (a) Merchant's Rule and (b) U.S. Rule. (a) Merchant's Rule: $ (b) U.S. Rule: $
Cal Lury owes $34,000 now. A lender will carry the debt for eight more years at...
Cal Lury owes $34,000 now. A lender will carry the debt for eight more years at 9 percent interest. That is, in this particular case, the amount owed will go up by 9 percent per year for eight yeers. The lender then will require that Cal pay off the loan over the next 16 years at 12 percent interest What will his annual payment be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments
4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay...
4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay this debt he is to pay an amount of X for the next 7 years and an amount of 2X for the following 15 years. All payments are made at the end of the year. The annual interest rate is 12%. Calculate X.
3. Beta bought a computer at a cost of $ 45,000. To finance the purchase, she...
3. Beta bought a computer at a cost of $ 45,000. To finance the purchase, she signed a promissory note that requires six equal annual payments. Beta will make the first payment in a year. Each payment will be in the amount of $ 10,637. to. Determine the interest rate on this note. b. Prepare the wage entries Beta will do for the first payment and for the last payment. c. Suppose that immediately after making the third payment, Beta...
question 6,7 6. (4 marks) A 182-day promissory note for $1000 with simple interest at 9%...
question 6,7
6. (4 marks) A 182-day promissory note for $1000 with simple interest at 9% is signed on January 12 2018. After 62 days, it is sold to a finance company that charges a simple discount of 6%. a. How much does the finance company pay for the note? b. What is the simple interest rate of return that the finance company earns on its investment if it holds the note until its maturity? 7. (6 Marks) Jean owes...
Un July 1, a man borrowed $2000 at 6% simple interest. He paid $500 on August...
Un July 1, a man borrowed $2000 at 6% simple interest. He paid $500 on August 30 and $600 on September 29. Find the balance on October 29 of the same year. A man owes $100, due in two months, and $400, due in eight months. His creditors have agreed to settle his debts by two equal payments in four months and ten months, respectively. Find the size of each payment if the rate of interest is 6% and the...
Real Estate Finance answer all please . John Corbitt takes a fully amortizing mortgage for $80,000 at 10 pe...
Real Estate Finance
answer all please
. John Corbitt takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment? 2. Dave Burns wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-yearm fixed-rate mortgage is 9.50 percent, what is the maximum...
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a...
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. ABC will make the first payment in one year. Each payment will be in the amount of $ 12,795. Suppose the note carries an interest rate of 12% and ABC will pay $ 10,000 annually for the five years of the note. At the end of year 5, in addition to the $ 10,000, ABC...
Jen wants to accumulate 400,000 at the end of 16 years. She deposits CX+10,000) into an...
Jen wants to accumulate 400,000 at the end of 16 years. She deposits CX+10,000) into an investment account at the end of each of the first 8 years. She then deposits X into the same account at the end of each of the final 8 years. The interest rate on the account is a 6% nominal rate compounded annually. Find X 7. 8. Keri was offered a choice of two payment options to settle her claims in a car accident...
Beta purchased a computer at a cost of $ 45,000. To finance the purchase, he signed...
Beta purchased a computer at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. Beta will make the first payment in a year. Each payment will be in the amount of $ 12,795. Suppose the note from the previous year carries an interest rate of 12% and Beta will pay $ 10,000 annually over the five years of the note. At the end of year 5, in addition...
Henry borrows $1075 at 10.5% simple interest. He makes a partial payment of $200 at the end of 12 month(s), and a partial payment of $400 at the end of 16 months. Determine the amount required to settle the debt at the end of 22 months using (a) Merchant's Rule and (b) U.S. Rule. (a) Merchant's Rule: $ (b) U.S. Rule: $
Cal Lury owes $34,000 now. A lender will carry the debt for eight more years at 9 percent interest. That is, in this particular case, the amount owed will go up by 9 percent per year for eight yeers. The lender then will require that Cal pay off the loan over the next 16 years at 12 percent interest What will his annual payment be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments
4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay this debt he is to pay an amount of X for the next 7 years and an amount of 2X for the following 15 years. All payments are made at the end of the year. The annual interest rate is 12%. Calculate X.
question 6,7
6. (4 marks) A 182-day promissory note for $1000 with simple interest at 9% is signed on January 12 2018. After 62 days, it is sold to a finance company that charges a simple discount of 6%. a. How much does the finance company pay for the note? b. What is the simple interest rate of return that the finance company earns on its investment if it holds the note until its maturity? 7. (6 Marks) Jean owes...
Un July 1, a man borrowed $2000 at 6% simple interest. He paid $500 on August 30 and $600 on September 29. Find the balance on October 29 of the same year. A man owes $100, due in two months, and $400, due in eight months. His creditors have agreed to settle his debts by two equal payments in four months and ten months, respectively. Find the size of each payment if the rate of interest is 6% and the...
Real Estate Finance
answer all please
. John Corbitt takes a fully amortizing mortgage for $80,000 at 10 percent interest for 30 years, monthly payments. What will be his monthly payment? 2. Dave Burns wants to buy a house. To do so, he must incur a mortgage. A local lender has determined that Dave can afford a monthly payment of $600, principal and interest. If the current interest rate on 30-yearm fixed-rate mortgage is 9.50 percent, what is the maximum...
ABC purchased equipment at a cost of $ 45,000. To finance the purchase, he signed a five-year promissory note, which requires five equal annual payments. ABC will make the first payment in one year. Each payment will be in the amount of $ 12,795. Suppose the note carries an interest rate of 12% and ABC will pay $ 10,000 annually for the five years of the note. At the end of year 5, in addition to the $ 10,000, ABC...
Jen wants to accumulate 400,000 at the end of 16 years. She deposits CX+10,000) into an investment account at the end of each of the first 8 years. She then deposits X into the same account at the end of each of the final 8 years. The interest rate on the account is a 6% nominal rate compounded annually. Find X 7. 8. Keri was offered a choice of two payment options to settle her claims in a car accident...
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