Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both loans after six years at 8% compounded annually. How much does Fred pay?
Q: Bozo borrowed $10,000 from Ernie due in 4 years at 6% compounded monthly. Immediately after the debt…
A: Ernie sells the note to Max, then Ernie shall receive the present value based on 5% compounded…
Q: Alexander Michael owes P25,000.00 due in 1 year and P75,000 due in 4 years. He agrees to pay…
A: Amount owed in one year = 25,000 Amount owed in four years = 75,000 Amount paid today = 60,000…
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A: a) Ali leaves this amount ($10,496.48) for additional 5 years therefore, the worth after 5 years…
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A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
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A: ANSWER GIVEN ON THE NEXT SHEET
Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…
A: The proceeds would be the difference between Present value at new terms and old terms. and we will…
Q: Helen contributed $500 at the end of every month for the past 5 years into an RRSP account, earning…
A: Annuity means series of no. of finite payments which are same in size and made in equal intervals.…
Q: Javion Minerva owes P25,000 due in 1 year and P75,000 due in 4 years. He agrees to pay P50,000 today…
A: Effective interest rate refers to the rate which is calculated by computing the effect of…
Q: Joyce pays P 2,000 every two months to settle his obligations for two years at 8% compounded…
A: Bimonthly payment (B) = P 2000 r = 8% compounded bimonthly = 8%/6 bimonthly = 1.3333% n = 2 years =…
Q: Allan borrows $2260 from his uncle. Two years later, he borrows another $1490. If his uncle charges…
A: Given information: First loan amount : $2260 2 years later second loan : $1490 Interest rate : 8.8%…
Q: Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both…
A: Simple interest does not involve compounding and no interest on interest is considered.
Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…
A: Here, Loan Amount is P100,000 Interest Rate is 13% Time Period is 5 years Each successive payment is…
Q: Carlos buys a house for 1,200,000 pesos. He makes a 20% down payment and the balance he takes a loan…
A: Solution: amount of loan = 1,200,000 * 80% = 960,000 Nos of monthly periods =15*12 = 180 Monthly…
Q: Starting on July 1, 2000, Peter borrows $8,400.00 each year for 4 years from his dear Aunt May to…
A: Loan amount = $8,4000 Time period = 4 years Interest = 9% compounded semi-annually Installment = 20…
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A: Compound interest can be defined as the addition of interest to the principal balance. It can be…
Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…
A: The amount of money can be calculated as future value of the principal amount.
Q: Mr. Al Khasim deposited OMR 20,000 in a bank which offers a compound annual interest of 6%. How long…
A: Compound interest is one of the form of interest under which interest is charged on both principal…
Q: What is the interest on interest if interest is compounded
A: Calculate the compound interest amount as follows:- Total amount after 3 years =P x (1+R/100)n…
Q: how much interest will mico pay
A: PV = A[ (1-(1/(1+r)^n)/ r] Where PV = present value, A = Annuity amount. r = interest rate. n =…
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A: The concept of the time value of money states that the same amount of money is worth more today than…
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A: Calculation of size of monthly payment: Answer: Size of monthly payment is $174.84
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
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A: The present value of the two payments will be equal to the outstanding balance at the end of the 3rd…
Q: Don takes out a 10-year loan of L, which he repays with annual payments at the end of each year…
A: Answer:
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A:
Q: Jeffrey received a $32,950 loan from a bank that was charging interest at 5.75% compounded…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years…
A: Future value is the value of the present cash flows after certain period. Due to interest that can…
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A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
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A: The amount taken on credit or financed by the person is ascertained by deducting the down-payment…
Q: usinessman borrowed P300,000 with interest at the rate of 6% compounded annually. He agrees to…
A: The annual payment depends on the interest rate and original amount of loan and deferred period of…
Q: John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year…
A: Computation:
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A: As the number of compounding period increase than the effective interest rate increases and more…
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A: We get future value of depositsUse FV function in excel Type =FV and press tab key. Type 6%, (this…
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A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Jake borrowed P40,000 from Mike. He promised to pay the principal amount plus the interest at the…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
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A: Financing the purchase of certain high-priced products is a common practice of purchasers.…
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A: Loan is the value or an amount which is borrowed from other sources like banks for a finite period…
Q: Joe is settling his debt by paying P50,000 at the beginning of every 6 months for 3 years. If the…
A: Semi annual payment = P 50,000 Period = 3 Years Number of semi annual payments = 3*2 = 6 Annual…
Q: Muhammad borrowed $ 5,000 from a bank 7% annual interest, provided that Muhammad pays the loan in…
A: Annual payments for the loan is calculated y present value of annuity formula. Total interest on…
Q: How much money did he borrow if the interest is 8% compounded quarterly ?
A: Principal amount is the amount initially invested in a deposit account or the net amount borrowed by…
Q: Gilbert got a loan of P100,000 from a local lending agency at 13% compounded annually. Their…
A: We can solve this in excel using the "goal seek" function. First of all make a loan amortization…
Q: I borrow a 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual…
A: Loan amount (PV) = 500,000 Interest rate (r) = 15% Number of annual payments (n) = 18
Q: kyle has a $15,000 in college debt when he graduates. he will pay it back with regular monthly…
A: Given: Present value =PV = $15,000 Monthly payment = PMT = $283.07 Years = 5 Periods = NPER = 5*12 =…
Q: Skylar bought a $270,000.00 house, paying 10% down, and financing the rest at 3% interest for 15…
A: A mortgage is a form of secured loan that is meant to be used to purchase or maintain real estate.…
Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both loans after six years at 8% compounded annually. How much does Fred pay?
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- Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both loans after four years at 9% simple interest. How much does Fred pay?Bozo owes $5000 due in one year and $7,000 due in seven years. Unfortunately Bozo is unable to meet the $5000 obligation. By mutual consent with the lender Bozo is allowed to pay off both loans after 3 years at 8% monthly. How much does Bozo pay?5) Bozo owes $4000 due in one year and $8,000 due in six years. Bozo is allowed to pay off both loans after 4 years at 8% monthly. How much does Bozo pay?
- When Christian bought his home, he borrowed $315,700 at 4.2% interest, compounded monthly for 25 years. If he makes all 300 payments, repaying his loan on schedule, how much interest will he pay? (Assume all payments are of equal amount)Allan borrows $2260 from his uncle. Two years later, he borrows another $1490. If his uncle charges him 8.8% interest compounded annually, how much does Allan owe 9 years after the first loan? Allan owes his uncle a total of $ _______.Bozo borrowed $15,000 from Ernie due in 5 years at 6% compounded monthly. Immediately after the debt is contracted, Ernie sells the note to Max for an amount based on 5% compounded monthly. How much does Ernie receive?
- Jason takes out a loan at 10% compounded annually for 7 years. At the end of this period, he pays off the loan at a value of $23,384.61. What amount did he borrow?Fred decides to invest $1000 into an account which earns a floating interest rate. For the first three years, Fred earns 4% annually. For the next five years, Fred earns 3% compounded quarterly. For the last two years, the account earns 2% simple interest. How much interest was earned at the end of the ten years?Holden borrows $209,433 from a financial institution with equal end-of-year payments of $24,600. If the annual interest rate is 10%, how long will it take for him to pay the loan and its interest back? 10 years 15 years 20 years 25 years
- Sally borrows $25,000 for a loan, and she repays the loan by making quarterly end-of-quarter payments of $650 for 15 years. What is her loan's nominal rate of interest compounded quarterly?Brian borrows $ 7500 from his friend at an annual 6% interest rate, which he will pay five years later. If the interest is charged quarterly to this debt, what is the total amount to be paid after five years?Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after the debt is contracted, Nick sells the note for an amount based on 10% monthly. What are the proceeds?