. If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
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- how much did you deposit at the end of each month in an IRA that pays 7% compounded monthly to earn $70,000 per year from interest alone, while leaving the principal untouched, to be withdrawn at the end of each year after you retire in 30 years?If you want to withdraw $10,000 at the the end of two years and $35,000 at the end of four years, how much should you deposit into an account that pays 9% interest compounded annually?Suppose you deposit $35,000 in an account today that pays 3.78% interest, compounded annually. How long does it take before the balance in your account is $76.000?
- You have borrowed $20,000 at an interest rate at 10% compounded annually. Equal payments will be made over a three-year period with each payment made at the end of the corresponding year. What is the amount of the annual payment? What is the interest payment for the second year?A series of equal quarterly payments of $2,000 for 10 years is equivalent to what future lump-sum amount at the end of 20 years at an interest rate of 6% compounded continuously?What equal monthly payments will repay an original loan of $10,000 in six months at a rate of 6% compounded monthly?
- You borrow $700,000 at 3% interest for 30 years on a mortgage. How much total will you pay back on the loan? Assume monthly compounding and round to two decimal places. Hint: Multiply the number of payments by the amount of the payment.If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years,how much should you deposit now into an account that pays 12 % interest compounded MONTHLY? See the accompanying cash flow diagram.If you want to buy a car in two years that cost $20,000.00, how much should put away every month if you can get a six percent nominal annual interest rate-compounded monthly?
- You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be made over a four-year period, with each payment made at the end of the corresponding year. What is the amount of the annual payment? What is the interest payment for the second year?An individual makes six annual deposits of $2,000 in a savings account that pays interest at a rate of 4% compounded annually. Two years after making the last deposit, the interest rate changes to 7% compounded annually. Ten years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn?Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of $2,000 from Sandy today. What is the interest rate that Sandy is getting? Assume interest is compounded monthly.