New Jobs Created borrowed $17900 at 16.5% simple interest from First Bank to purchase some office...
New Jobs Created borrowed $17900 at 16.5% simple interest from First Bank to purchase some office furniture. First Bank requires monthly interest payments and the full $17900 at the end of 7 years. In order to meet this obligation, New Jobs Created plans to make monthly deposits to a sinking fund earning 8.25% compounded monthly. Round up any part of a cent. State the total monthly obligation, and (b) what is the total interest earned on the sinking fund assuming all deposits are the same?
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New Jobs Created borrowed $17900 at 16.5% simple
interest from First Bank to purchase some office...
Accountancy
A company borrows $52000 at 10.75% simple interest from State Bank to purchase equipment. State Bank requires the company to make monthly interest-only payments and pay the full $52000 at the end of 5 years. In order to meet the 5 year obligation of $52000,the company makes equal deposits at the end of each month into a sinking fund with Wolf Savings. The sinking fund earns 6.75% compounded monthly. Note: This problem is set to allow for an answer of...
14. United Sales Association (USA) recently borrowed $25,000 from its bank at a simple interest rate...
14. United Sales Association (USA) recently borrowed $25,000 from its bank at a simple interest rate of 11 percent. The loan is for one year, and the loan agreement calls for the interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. (a) What are the loan’s monthly payments? (b) Compute the loan’s APR and, rEAR.
Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4...
Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4 years. Round to the nearest cent How much should Austin have in a savings account that is earning 4.50% compounded quarterly, if he plans to withdraw $2,400 from this account at the end of every quarter for 9 years? Round to the nearest cent Zachary deposits $350 at the end of every quarter for 4 years and 6 months in a retirement fund at...
2) Marcia Rodger borrowed $3,500 from Valley Bank at a rate of 9 %. The date of the loan was October 10. Marcia hop...
2) Marcia Rodger borrowed $3,500 from Valley Bank at a rate of 9 %. The date of the loan was October 10. Marcia hoped to repay the loan by February 10. Assume the loan is based on ordinary interest. What will the interest cost be? How much will Marcia repay on February 10? What would the payback be if exact interest was used? 3) Mike French borrowed $9,000 at 9% for 85 days. Calculate Mike's proceeds from this simple discount...
In the following ordinary annuity, the interest is compounded with each payment, and the payment is...
In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.) Monthly deposits earning 4% to accumulate $7000 after 10 years. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h Calculate the repavment amounts if the loan ($15 000) will be repaid in two equal installments of $7.500 each, paid at the end of second and fourth years respectively. Interest will be paid each year Click the icon to view the interest and annuity table for discrete compounding when i- 12%% per year . a. The equal end-of-year payments required to pay off the...
13/03/2017 Project on Mathematics of Finance (Chapter 5). 10. A woman is selling some land, and...
13/03/2017 Project on Mathematics of Finance (Chapter 5). 10. A woman is selling some land, and she will be paid a lump sum of $80,000 in 14 years. Until then, the buyer pays 9% simple interest quarterly. (a) Find the amount of each quarterly interest payment. (b) The buyer sets up a sinking fund so that enough money will be present to pay off the $80,000. The buyer wants to make semiannual payments into the sinking fund, the account pays...
Questions and Problems: 1. Simple Interest versus Compound Interest [LO1] First City Bank pays 9 percent...
Questions and Problems: 1. Simple Interest versus Compound Interest [LO1] First City Bank pays 9 percent simple interest on its savings account balances, whereas Second City Bank pays 9 percent interest compounded annually. If you made a deposit of $7,500 in each bank, how much more money would you earn from your Second City Bank account at the end of eight years? 2. Calculating Future Values (LO1] For each of the following compute the future value Present Value Interest Years...
1. Steve Fowler borrowed $94,900 on March 1, 2018. This amount plus accrued interest at 6%...
1. Steve Fowler borrowed $94,900 on March 1, 2018. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Steve plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 5% per annum. How much must be contributed each year by Steve Fowler to provide a fund sufficient to retire the debt...
Question B1 (7 marks) Suppose Gordon is now aged 50 and plans to start saving for...
Question B1 (7 marks) Suppose Gordon is now aged 50 and plans to start saving for 15 years and will accumulate $1,500,000 at the age of 65 as his retirement fund. Suppose the required return is 9 percent compounded monthly, what will be his monthly payments with the first payment occurring one month from now? Question B2 (8 marks) G-Force stock currently sells for $48.29 per share. The market requires a 13 percent return on the firm’s stock. If the...
Calculate the accumulated amount of end-of-month payments of $5,000 made at 3.21% compounded quarterly for 4 years. Round to the nearest cent How much should Austin have in a savings account that is earning 4.50% compounded quarterly, if he plans to withdraw $2,400 from this account at the end of every quarter for 9 years? Round to the nearest cent Zachary deposits $350 at the end of every quarter for 4 years and 6 months in a retirement fund at...
2) Marcia Rodger borrowed $3,500 from Valley Bank at a rate of 9 %. The date of the loan was October 10. Marcia hoped to repay the loan by February 10. Assume the loan is based on ordinary interest. What will the interest cost be? How much will Marcia repay on February 10? What would the payback be if exact interest was used? 3) Mike French borrowed $9,000 at 9% for 85 days. Calculate Mike's proceeds from this simple discount...
An amount of $15,000 is borrowed from the bank at an annual interest rate 12% h Calculate the repavment amounts if the loan ($15 000) will be repaid in two equal installments of $7.500 each, paid at the end of second and fourth years respectively. Interest will be paid each year Click the icon to view the interest and annuity table for discrete compounding when i- 12%% per year . a. The equal end-of-year payments required to pay off the...
13/03/2017 Project on Mathematics of Finance (Chapter 5). 10. A woman is selling some land, and she will be paid a lump sum of $80,000 in 14 years. Until then, the buyer pays 9% simple interest quarterly. (a) Find the amount of each quarterly interest payment. (b) The buyer sets up a sinking fund so that enough money will be present to pay off the $80,000. The buyer wants to make semiannual payments into the sinking fund, the account pays...
Questions and Problems: 1. Simple Interest versus Compound Interest [LO1] First City Bank pays 9 percent simple interest on its savings account balances, whereas Second City Bank pays 9 percent interest compounded annually. If you made a deposit of $7,500 in each bank, how much more money would you earn from your Second City Bank account at the end of eight years? 2. Calculating Future Values (LO1] For each of the following compute the future value Present Value Interest Years...
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