HW3 sol

Chapter 5: Simple and Compound Interest - Homework Score: 50.42/100 19/32 answered Question 15 How much would you need to deposit in an account now in order to have $2000 in the account in 15 years? Assume the account earns 6% interest compounded monthly. Round to the nearest cent. Submit Question 80 F1 DIL F2 F3 F4 F5 E7 FE @ %23 $ & 2 3 4 5 6 7 8

4

5. A $200 loan is offered with an annual simple interest rate of 6 percent. How much would the borrower owe if the loan is repaid after two years? A. $200 B. $224 C. $224.72 D. $212

1 Find the amount of simple interest on a loan of $4,500 at 9% interest for 13 years. 2 $427.50 $1,485.15 $4,275.00 $5,557.50

Problem #3: A loan of amount $16720.82 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1000 each, and the final 9 payments are each $2000. Interest is at an effective annual rate of 4.2%. What is the amount of the principal repayment in the 6th payment? Problem #3: 2/2V 329.49 Answer correct to 2 decimals. A

Chapter 7 Self Test Problem #2

MMA MATHEMATICAL ASSOCIATION OF AMERICA Simple and Compound Interest / 5 Previous Problem Problem List Next Problem HW 20 Simple and Compound Interest: Problem 5 (5 points) Consider a $700 T-bill calculated as a simple discount loan. The annual simple discount rate is 2% and the length is set to be 13 months. Find the price of the T-bill, the interest earned, and the simple interest rate paid on the bill. Price of the T-bill= dollars. Total interest earned when $700 T-bill is redeemed = dollars. Simple interest rate earned = percent (round to 2 decimal places). Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 05/04/2024 at 02:46pm EDT WeBWorK 1996-2022 theme: math4-green | www.version: 2.17 Pg version 2.17 | The WaßWork Project

Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate the monthly payment Part b. Determine the total amount paid, then figure out what percentage is paid towards the principal and what percentage is paid for interest. Please solve part A and B they go together. I included an example problem

SIMPLE vs COMPOUND INTEREST I simp. = P *r *t where P – principal amount (the initial amount you borrow or deposit), r – annual rate of interest (as a decimal), t – number of years the amount is deposited or borrowed for. nt Тcomp. 1(1+)* – 1] * where n – number of times the interest is compounded per year. 2. If you take a three-year simple-interest loan of 100 000 CZK at annual interest rate of 5,5%, what would be the total amount of interest paid? Total number of Principal Interest rate Time period Total Interest paid compounding periods (CZK) (as a decimal) (number of years) (CZK) 100,000 0.055 3 16,500

Part 2: When Tammy borrowed $8000.00 at 11.00% compounded quarterly she'll repay the loan in equal monthly payments over 5 years. How much of the 24th payment is interest? $52.46 d. $48.70 O a. $49.35 e. $49.11 b. $49.84

#15

Answer #6

K V Suppose that you borrow $10,000 for five years at 6% toward the purchase of a car. Find the total interest for the loan. The monthly payment is $193.33 The total interest for the loan is $ (Round to the nearest cent as needed.) #3 E 80 F3 $ 4 DOD F4 R 85 % F5 T F6 & F7 D 00 F8

Go.4

P=? $3,000 $3,000 $1,500 $1,500 4=10% 2 = 8% iz = 10% 4 = 15% I5 = 10% 6 =8% 1 3 Years 6 Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The present equivalent value is $ (Round to the nearest cent.)

Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the amount saved on interest over the life of the loan. Assume the mortgage in for 10 years and use the amortization table to find the monthly payments Increase in Amount of Loan Interest Rate Down payment $150,000 5% $9,000 Click the icon to view a table of monthly payments on a $1,000 loan. Down Payment $27,000 a. The monthly payment will be reduced by $ when the down payment is increased by $9,000 (Round to the nearest cent as needed.) b. Increasing the down payment by $9.000 saved on interest over the life of the loan (Round to the nearest cent as needed)

vvk.2

QUESTION 6 You have a 7-year loan of $80,000. The borrower will pay $8,500 at the end of Year 1, $9,500 at the end of Year 2, and $7,500 at the end of Year 3, plus X at the end of each year from Year 4 through Year 7. X is the fixed but unspecified cash flow. The loan's rate is 9%. What is X? O $22,3617.01 O $21,954.25 $23,350.31 O $19,411.02

Exercise 64: If $19,000 is borrowed at 12% interest to be paid back over ten years, what is the balance of the loan just after the six year's payment is made? A. $10,213. B. $10,604. C. $10,806. D. $11,316. CIRCLE THE CLOSEST ANSWER. Please solve using BII and math formulas. Please provide accurate answer.

Proxima N. 7 11 IL IIII I3 I| .4 E) Calculating loans 14. Louis is looking at buying a car for $20,000. The term for the loan is 6 years, and the interest rate is 3%, compounded monthly. He decides to put $. number less than 10,000) down. How much will his monthly payments be? 2500 (a -txn 1-(1+ Loan= payment NC

2. Problem 5.17 (Effective Interest Rate) еВook You borrow $225,000; the annual loan payments are $30,017.40 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. %

I. Simple Interest Solve the following Problem 1. A man borrowed P45,000 from a lending institution at 8.5% simple interest. Find the interest and amount if the obligation is to be settled in: a. 1.5 years b. 30 months c. 2 years and 9 months 2. At what rate should P75,000 be invested in order to earn P5,100 interest in: a. 2.5 years b. 3.25 years c. 180 days 3. How long should P100,000 be invested at 8% simple interest in order to earn: a. P12,000 b. P16,000 c. P32,000

Answer items 5-6

Problem 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if the interest rate is 10% per year? Year Income, S 0 0 1-5 6000 6-8 6000 9-14 8000 Answer: Equation: CFD: Expense, S 9000 6000 3000 5000

ll touch 1:11 PM 58% Rola 5/4/21, 12:35 PM 1. What's the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded annually?* a) $2,620 b) $5,016 c) $2,007 d) $1,500 e) None of the above What's the resent value of $5.500 received after 3 vears if the

Problem 5 EFFECTIVE INTEREST RATE. Charles Corporation borrows $70,000 at 19 percent annual interest. Principal and interest is due in 1 year. (a) What is the effective interest rate? Assume the same information above, that interest is deducted in advance. (a) except what is the amount of proceeds the company will receiye at the time of the loan? (b) What is the effective interest rate? from on a

Jaspreet received a 15 year loan of $300,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent Question 5 of 6 b. What is the balance of the loan at the end of year 2? $0.00 Round to the nearest cent c. By how much will the amortization period shorten if Jaspreet makes an extra payment of $30,000 at the end of year 2? SUBMIT QUESTION