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- Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?On June 1, Mia deposited $3,800 in an MMDA that pays 4% interest. On October 31, Mia invested $2,700 in a three-month CD that pays 6%. At the end of the year, how much interest will Mia have earned, assuming she hasn't taken anything out of the money market deposit account? Assuming she hasn't taken anything out of the money market deposit account, the amount of interest Mia will have earned is? (Round to the nearest cent)Cate bought a new car for $25,000. The bank granted her a loan with a simple interest rate of 7% over a 5-year period. How much will Cate pay in interest by the end of the loan? $3,500 $8,750 $7,142 $1,750
- To pay for a $22,300 truck, Jina made a down payment of $4900 and took out a loan for the rest. On the loan, she paid monthly payments of $312.67 for 5 years. (a) What was the total amount Jina ended up paying for the truck (including the down payment and monthly payments)? $ (b) How much interest did Jina pay on the loan?Armita is saving for the down payment on a house. She deposits $12,500.00 today, $8,250.00 in 4 months, and $6,900.00 in 3 years. The account earns interest at the rate i(1)= 8.788%. How much does she have in her account after 6 years?Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest charges, which are 1.8% per month on the unpaid balance. Find the interest charges if she moves the debt to a credit card charging 0.7% per month on the unpaid balance. What are the interest charges at 1.8% a month? What are the interest charges at 0.7% a month? What are the savings that using the 0.7% card brings over the 1.8% card?
- Shantel purchased a car for $22,000; she paid $2200 as a down payment and financed the balance amount at 2.9% compounded monthly for 4 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Shantel pays an additional $200 per month, how many periods will it take to payoff the load? d) If Shantel pays an additional $200 per month, how much interest will be saved?Arianne borrowed $6200 to buy a vehicle to drive to school. She plans to study for 3 years, and then start her career using her education. Interest is charged on the loan at 7.64% compounded annually. If she starts making month-end payments of $230 when she begins working, how many payments will she have to make?1. Mr. Lima borrowed ₱50,000 from a lending firm to start a mini-store business. If the firm charges simple interest of 5%, how much must Mr. Reyes pay in three years? 2. At what simple interest rate must ₱100,000 be invested so as to gain an interest of ₱10,000 after 5 years? 3. In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years. How much should they deposit in a bank providing an interest rate of 2% compounded quarterly? 4. How long should ₱50,000 be invested at 6% compounded semi-annually if it should earn an interest of ₱10,000? 5. A cellular phone may be purchased at ₱1,500 payable monthly for 18 months. The first payment is due after 3 months. How much is the cellular phone if the interest rate is 12% convertible monthly? 6. Warlo bought a laptop that is payable by monthly installment of ₱1,800 for 12 months starting at the end of 2 months. How much is the cash value of the laptop if interest is at 10% convertible monthly? 7.…
- Lyndsay puts $1,000.00 into a savings account that pays 3% interest, compounded annually. As the interest is earned, she leaves it in her account. At the end of the third year, what is her balance? Group of answer choices $1,030.00 $1,090.00 $1,092.73 $1,095.95Polly purchased a car. She paid ₱150,000 as down payment and pays ₱5,500 at the end of each month for 48 months. If the interest is 7.8% compounded monthly, how much was the car worth?Nina borrowed money on 31 August and agreed to pay back the loan on 2 November of the same year. If the discount rate is 18% per year and she received R5 000 on 31 August, what is the value of the loan that Nina has to pay the bank on 2 November? 1. R5 155,34 2. R4 844,66 3. R5 160,32 4. R5 000,00 5. None of the above