1. Robert is expected to settle a loan on January 1st, 2018 by paying $8,000. What amount should she pay if she decides to settle it on April 30th, 2017 instead? The interest rate is 5.37% compounded semi-annually. Round to the nearest cent

1. Robert is expected to settle a loan on January 1st, 2018 by paying $8,000. What amount should she pay if she decides to settle it on April 30th, 2017 instead? The interest rate is 5.37% compounded semi-annually. Round to the nearest cent

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

See similar textbooks

Related questions

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy of…

Q: On September 1, 2018, you bought a used car for $37,000. You paid $2,000 down and financed the…

A: From the given information first monthl payment on the loan is calculated and then using the monthl…

Q: What amount should he pay if he decides to settle it on June 20th, 2017 instead? The interest rate…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Andrew Bolkonsky borrows $200,000 to purchase a house for investment purposes on January 1st 2006.…

A: The concept of present value states that a sum of money is worth today more than the same sum of…

Q: Caroline borrowed $1,500.00 at 9.00% p.a. She wants to settle this loan with 2 equal payments, one…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Greg owes two debt payments – a payment of $5316 that was due in 13 months ago and a payment of…

A: The date at which values of all payments are calculated by compounding past and discounting future…

Q: Clark borrows $25000 on December 1st 2021. He has to be repay the amount in 15 equal monthly…

A: Monthly payment includes the amount of interest associated with the borrow amount and some amount of…

Q: If Rachel obtained a business loan of $205,000.00 at 4.49% compounded semi-annually, how much should…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: 1. Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent…

A: In order to consider the present value with inflation rate or market rate of interest over the…

Q: Adrian received the proceeds from an inheritance on May 14. He wants to set aside enough on May 15…

A: Simple interest is calculated directly on the given principal amount. The formula for calculating…

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much…

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Formula: Total No of Deposits= n×t where, n is number of compounding per 't' t is period of…

Q: must she

A: An installment that is paid on monthly basis is called PMT. A fixed amount of interest is to be…

Q: Ms. R. would like to buy a mobile home. For this purpose, she takes out a loan on 01.01.2021 Amount…

A: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Q: 1. Robert is expected to settle a loan on January 1st, 2018 by paying $8,000. What amount should she…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: a) Bianca takes out a 20-year home loan of $480,000 for her property. She makes equal month-end…

A: A mortgage loan is the type of loan that is provided to a borrower by a bank or financial…

Q: B) Ms. R. agrees with the bank to repay the debt plus interest with annuities in the amount of…

A: A loan is obtained by a borrower which is repaid in regular payments over the period of time. The…

Q: ) Nancy takes out a 22-year home loan. She makes equal month-end repayments including the principal…

A: Loans are paid by the equal monthly installment and these carry the payment for interest rate and…

Q: Lia plans to buy a house for Php 157,950. She wants to make a down payment of Php 24, 937 and to…

A: Mortgage- A mortgage is a sort of loan used to buy or maintain tangible assets such as a home,…

Q: Mrs. R. would like to buy a mobile home. To this end, she takes out a loan of 80,000 euros on…

A: Mortgage refers to the borrowed amount of funds that is taken from financial institutions, such as…

Q: Today is January 1, 2021. Jason borrows from Jessica $239,037 and agrees repay her by monthly…

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: If money is compounded monthly at 6.42%, how much must she pay each month? Round off to two decimal…

A: Principal Amount of Loan = Total Amount - Down Payment Monthly Payment = P x r / [1 - {1 / (1 +…

Q: Nadhirah needs to pay RM168.28 every month for a loan of RM7,000 from XYZ Bank at 7.2% compounded…

A: Given, The monthly payment is RM 168.28 Loan amount is RM 7000 Rate is 7.2% compounded monthly

Q: 7. To accumulate Php 85 250, Joanna needs to place equal deposits at the end of every 3 months in a…

A: Given: Future Value of annuity payment (FVA) = Php 85250 Interest rate = 8% compounded quarterly…

Q: Mary, a college student, needs to borrow $8,000 today for her tuition. She agrees to pay back the…

A: This question is about calculating the future value. Formula: Future value = Initial amount*(1+…

Q: Lia plans to buy a house for Php 158482. She wants to make a down payment of Php 23912 and to take…

A: House cost = Php 158482 Down payment = Php 23912 Loan amount (PV) = 158482-23912 = Php 134570 Period…

Q: Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making…

A: Mortgages is a loan contract used by persons to buy capital assets such as house on debt. Mortgages…

Q: Juancho is required to pay P1,800 at the beginning of each quarter for the next 3 years for his…

A: Due to compounding the interest on the increase with increase in compounding. So effective rate is…

Q: On June 26, 2019, Naomi obtained a loan of P150,000 from a local businessman. The interest rate on…

A: There are two types of simple interest: the ordinary and the exact. These two phrases employ the…

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation…

A: Loan Amount = P 300,000 Interest rate = 12% Time Period = 6 Months

Q: Today is January 1, 2021. Jason borrows from Jessica $239,037 and agrees repay her by monthly…

A: If the deposit amount increases in every period, then the series is known as growing annuity. It is…

Q: Jennifer has a 60-month fixed installment loan, with a monthly payment of $223.04. The amount she…

A: Unearned Interest: Unearned interest is interest that a lender has collected but has not yet earned…

Q: 7. If P 25 000 is the present value of P 30 500 due at the end of 16 months, find the discount rate.…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) rs will it take…

A: Loan Amount = $100,000 Interest Rate = 4% Payment in 1 Year = $10,000

Q: Theresa borrowed $7258.00 compounded monthly to help finance her education. She contracted to repay…

A: Given:

Q: Gabrielle obtained a business loan of $245,000.00 at 4.03% compounded semi-annually, how much should…

A: Loans are paid by the periodic payments that carry the payment for interest and payment for…

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: how large must each payment be for you to end up with $1,000 on January 1, 2022?

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Janet borrows $4,000 on October 20, 2020. If the simple interest rate is 12%, then how much needs to…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Lia plans to buy a house for Php 150964. She wants to make a down payment of Php 20692 and to take…

A: Price of house = Php 150,964 Down payment = Php 20692 Loan amount (PV) = 150,964-20692 = Php…

Q: Lisa is depositing $1,600 in a six-month CD that pays 2.83% interest. How much interest will she…

A: A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed…

Q: Cesar Moreno is considering entering into an agreement with BDO bank to deposit P1,000 into a…

A: Compound interest Compound interest is interest earned on both the principle and the interest over…

Q: Dory deposits a certain amount of money into her savings account at the beginning of each quarter…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Today is January 1, 2021. Jason borrows from Jessica $239,037 and agrees repay her by monthly…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: mary, a college student, needs to borrow $8000 today for her tuition. She agrees to pay back the…

A: Loan is referred as the amount of fund is given to a party in exchange of repayment of principal…

Q: To expand his business, Happy took a loan of $1million from a bank on 1 January 2020 which he will…

A: Here, Loan Amount is $1,000,000 Interest Rate charged is as follows: 5% per annum effective for…

Question

Please solve very soon

1. Robert is expected to settle a loan on January
1st, 2018 by paying $8,000. What amount
should she pay if she decides to settle it on April
30th, 2017 instead? The interest rate is 5.37%
compounded semi-annually. Round to the
nearest cent

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
Compound Interest Issues You are given the following situations: 1. Thomas Petty owes a debt of 7,000 from the purchase of a boat. The debt bears 12% interest payable annually. Thomas will pay the debt and interest in 5 annual installments beginning in 1 year. Calculate the equal annual installments that will pay off the debt and interest at 12% on the unpaid balance. 2. On January 1, 2019, John Cothran offers to buy Ruth Houses used tractor and equipment for 4,000 payable in 12 equal semiannual installments which are to include payment of 10% interest on the unpaid balance and payment of a portion of the principal with the first installment to be made on January 1, 2019. Calculate the amount of each of these installments. 3. Nadine Love invests in a 60,000 annuity at 12% compounded annually on March 1, 2019. The first of 15 receipts from the annuity is payable to Love on March 1, 2029, 10 years after the annuity is purchased and on the date Love expects to retire. Calculate the amount of each of the 15 equal annual receipts. Required: Using the appropriate tables, solve each of the preceding situations.
Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?