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- A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. o. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.A person borrows an amount for a new house and s/he is going to make monthly payments of 8,000 $ for the next 10 years. The nominal annual interest rate is quoted as 12%. (Assume the first instalment is going to be paid 1 month after s/he borrows.) a. Find the amount borrowed by this person. b. How much does this credit worth at the end of the last payment date? c.lf this person decides on closing his/her loan after paying the 34th instalment, how much should s/he pay? It is given that the closing fee of this credit is 1,453 $.A college student receives an interest free loan of $8250 from a relative. The student will repay $125 per month until the loan is paid off. a. Express the amount P (in dollars) remaining to be paid in terms of time t (in months) b. After how many months will the student owe $5000?
- Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?Wade Ellis buys a new car for $16,127.42. He puts 10% down and obtains a simple interest amortized loan for the rest at 0.115 interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment. (b) Find the total interest. (c) Prepare an amortization schedule for the first two months of the loan. Payment Number Principal Portion Interest Portion Total Payment Balance 0 $ _______ 1 $ _______ $ _________ $ _______ $ _______ 2 $ _______ $ _________ $ _______ $ _______3. Ruby Red borrowed $7500 for the diner at 8.1% compounded monthly. She agreed to repay the loan in equal monthly payments over four years. 1. What is the size of the monthly payment? 2. How much of the 15th payment is interest? 3. What is the principal repaid in the 36th payment period? 4. Prepare a partial amortization schedule.
- 1. An employee obtained a loan of P 10,000 at the rate of 6% compounded annually in order to build a house. How much must he pay monthly to amortize a loan within a period of 10 years? 2. How much money would you have to deposit for 5 consecutive years starting one year from now if you want to be able to withdraw P 50,000 ten years from now? Assume the interest is 14% compounded annually. 3. A certain annuity pays P 80 at the end of every 3 months for 12 years. If the present value of the annuity is P 1,200 and the accumulated amount is P 2,000 determine the nominal rate. 4. An annual deposit of P 1,270 is placed on the fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually. How|| much is the worth of this fund at the end of 9 years? 5. A man owes P 10,000 with interest at 6% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt? 6. A farmer bought a tractor costing P…Wade Ellis buys a new car for $16,177.57. He puts 10% down and obtains a simple interest amortized loan for the rest at 11 1/2% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment. (b) Find the total interest.(c) Prepare an amortization schedule for the first two months of the loan. Payment Number PrincipalPortion InterestPortion Total Payment Balance 0 n/A n/A n/A n/A 1 ? ? ? ? 2 ? ? ? ?You borrowed $30,200 to remodel your kitchen. The interest rate is of the loan is 8.2 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $750? a. 47.25 years 40.96 years. Ob. c. 3.41 years O d. 3.94 years Oe. 7.43years
- Matt purchased a car for 22,000 he paid 4400 as a down payment and financed the balance at 3.7% compounded monthly for 5 years, A. What is the size of payment made at the end of every month? B. What was the amount of interest for the entire loan?A man made a loan of $100 to be repaid with $105 at the end of one month. What was the annual (simple) interest rate?a man borrows money from a bank . he receives the money in 5 equal annual installment of X commencing at t=1 with t in years.He repays the loan with twenty equal annual payment of 100 . if the first payment is due one year after the last installment and the interest rate is i=0.13 the find an equation for X
