Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
110,000=Annuity[1-(1.07)^-25]/0.07
110,000=Annuity*11.6535832
Annuity=110,000/11.6535832
=$9439.16(Approx).
A bank offers a home buyer a 25-year loan at 7% per year. If the home buyer borrows $110,000 from the bank, how much mu...
A bank offers a home buyer a 30-year loan at 8% per year. If the home buyer borrows $110,000 from the bank, how much must be repaid every year? a. $11,725.22 b. $15,633.63 c. $9,771.02 d. $13,679.43
#24. A bank offers a home buyer a 30-year loan at 8% per year. If the home buyer borrows $ 130000 from the bank, how much must be repaid every year?
please can you answer question 19-25 19) A bank offers a home buyer a 30-year loan at 3.5% per year. If the home buyer borrows $320,000 from the bank, how much must be repaid every year? A) $6.199 B) $10,667 C) $17,399 D) ST14,009 20) Your firm just signed a contract to receive royalty forever. The royalty is estimated to be Simil, every year, starting from next year. If the discount rate is 11%, what is the present value of...
Big Brothers, Inc. borrows $321,854 from the bank at 16.21 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 6 years. How much will each annual payment be? Round the answer to two decimal places.
A home buyer signed a 20-year, 8% mortgage for $72,500. Given the following information, how much should the annual loan payments be? Select one: O A. $5,560 B. $7,384 C.$8,074 D. $13,900 The shorter the length of time between a present value and its corresponding future value, Select one: A, the lower the present value, relative to the future value. 0 O B. the higher the present value, relative to the future value. C. the higher the interest rate used...
Show all yourwork! 1) A bank borrows $1,000,000 for 1 month at a simple interest rate of 9% per annum. How much the bank will pay back at the end of 1 month? 2) John borrows $9,000 for 4 months. If the person he is borrowing from offers a discounted loan at 7.5%, how much must he repay at the end of 4 months?
To purchase a new truck, you borrow $30,000. The bank offers a 6-year loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest: a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i), per period of time, should be used in solving this problem? c. Is the present single amount of...
Please explain for each step A company borrows $17,000 to purchase a new piece of equipment. The loan will be repaid in one lump sum at the end of 5 years. The bank offers to loan the money at 0.5% per month, but the company prefers to repay the loan at 6% per year. If the company is successful at getting the bank to agree to its preferred terms, how much will the company save in interest on the loan?...
Question 3 1 pts A company borrows $7,000 to purchase a new piece of equipment. The loan will be repaid in one lump sum at the end of 5 years. The bank offers to loan the money at 0.5% per month, but the company prefers to repay the loan at 6% per year. If the company is successful at getting the bank to agree to its preferred terms, how much will the company save in interest on the loan? Express...
Sunlight Grovers borrows 250,000 OMR from a bank @ 4% annual interest. The loan due in 3 months. At the end of the 3 months the company pays the amount due in full. How much did the company remit to the bank. Select one: O a OMR 2500 O b. OMR 252,500 c. OMR 10,000 d. OMR 250,000