1. You borrowed $10,000 from a bank at an interest rate of 9%, compounded monthly. This loan will be repaid in 48 equal monthly installments over four years. Immediately after your 25th payment, if you want to pay off the remainder of the loan in a single payment, the amount is close to

1. You borrowed $10,000 from a bank at an interest rate of 9%, compounded monthly. This loan will be repaid in 48 equal monthly installments over four years. Immediately after your 25th payment, if you want to pay off the remainder of the loan in a single payment, the amount is close to

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

See similar textbooks

Related questions

Q: 5. Kraft is a limited partner of Johnson Enterprises, a limited partnership. As provided in the…

A: A liability is an obligation owed by an individual or business, typically in the form of money. Over…

Q: An industrial plant bought a set of equipment for 90,000. Miscellaneous expenses including…

A: Salvage value is the amount that company expects to get at end of useful life asset. Company…

Q: so possesses a technology that allows him to costlessly convert any quantity of grapes into e same…

A: The utility function establishes the connection between the overall utility attained by consuming…

Q: In the country of Solow, the production function is this: Y = √K. (Output = square root of capital).…

A: Given as Rate of depriciation = 10% = 0.1 Depreciation function (D) = dk now, let Investment (I) =…

Q: Refer to Figure 12-3. Suppose that government spending increases, shifting up the aggregate…

A: In economy, Price level is determined by the market forces Aggregate demand and supply. when AD=AS…

Q: A bond pays P342 interest per year and has face value of P9,320 at the end of 12 years, when it has…

Q: also possesses a technology that allows him to costlessly convert any quantity of grapes into he…

A: Introduction Armando consumes two products: wine and grapes. He has access to technology that…

Q: Explain two reasons why the Reserve Bank does not have complete control over the level of bank…

A: Monetary policy is a set of actions designed to control a country's total money supply and promote…

Q: 3. Refer to Figure 1 above: If the market price for spinach is $4, should the farm continue to…

A: The average cost is the sum of the total cost of the items divided by the total quantity of the…

Q: n a study of the demand for automobiles in Canada, economists Blomqvist and Hassel distinguished…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Assume that no banks hold excess reserves, and the public holds no currency. If a bank sells a R100…

A: A country's banking system is referred to be a structural network of institutions that deliver…

Q: Suppose that country A produces two goods (a labor-intensive good X, furniture, and a…

A: Labor intensive implies a procedure or industry that needs a large amount of labor to produce its…

Q: In which of the following cases would government intervention in a market result in an increase in…

A: Subsidy is the term used to describe government assistance or incentives given to producers to…

Q: 0

Q: Modified accelerated cost recovery system allows the capitalized cost of an asset to be recovered…

A: An expenditure that is added to the cost base of a fixed asset on the balance sheet of a corporation…

Q: Dollars D D CQ5 b 0 F Multiple Choice Refer to the diagram. Equilibrium output is O O MR g hj Output…

Q: Which of the following is NOT a determinant of the level of investment: A. Sales Outlook B.…

A: Businesses make investments while producing goods and services and creating products. These…

Q: It was observed in a particular supermarket that after the price of good X dropped from 20 pesos to…

A: Firms use the price elasticity of demand to modify their demand elasticity. If the demand for the…

Q: In the nonlinear function Y = ax ZC, the parameter c measures Multiple Choice O O O the percent…

A: The graph is not a straight line if it is non-linear. A non-linear function has a curved line as its…

Q: Discuss the actions a purchasing manager can take to reduce uncertainty associated with supplier…

A: Introduction Any business or other organization must make the best purchasing decisions to enhance…

Q: The rate at which a consumer is able to substitute one good for another is determined by the…

A: The Marginal utility refers to the change in the total utility when one additional unit of good is…

Q: 4. The consumer's budget increases to £24. Show the effect of this change graphically.

A: The budget line shows all possible combinations of two goods that could be produced with a given…

Q: - 1.6. Consider the Cournot duopoly model where inverse demand is P(Q) = a − Q but firms have…

A: An industrial structure where businesses compete on the volume of output they will generate, which…

Q: The determinants of nominal interest rates are: Inflaiton Real Risk-Free rates Defual or credit…

A: the analysis of tradeable financial instruments called securities. it deals with finding the proper…

Q: Excel template Break-Even to determine the best decision. Round your answer for the breakeven…

A: In order to calculate the point at which you will break even, a break-even analysis compares the…

Q: Procter & Gamble Co. is a major soap producer. All of the following, except one, would shift its…

A: In economics, the concept of supply is used to determine the quantity of a commodity or service…

Q: - 1.7. In Section 1.2.B, we analyzed the Bertrand duopoly model with differentiated products. The…

A: Demand function : qi = a - pi (When pi < pj ) qi = 0 (when pi > pj ) qi = (a-pi )/2…

Q: What is meant by produce outside ppf and produce inside ppf

A: A graph that shows various combinations of two possibly producible things is known as a production…

Q: 18) If the cost of producing each performance of a Raider's Game is constant a inelastic, profits…

A: The profit is maximized in where the marginal revenue is equal to the marginal cost or MR = MC. The…

Q: 3. A consumer has a budget of £12 to split between two goods: good 1 has a price of 2, good 2 has a…

A: Budget constraints refers when a consumer's income restricts their purchase patterns. In other…

Q: Arrange the following revenues in the federal government, from greatest to least. (1 being the…

A: Since you have posted multiple questions, as per the Bartleby guidelines we can solve only one…

Q: A decision-maker with initial wealth w faces a probability of incurring a loss. If the loss occurs,…

A: Risk aversion is the tendency to avoid risk. Risk-averse investors prioritize capital preservation…

Q: Constant percentage method is based on the assumption that the annual cost of depreciation is a…

A: Depreciation is known as the wear and tear taking place in an asset due to usage. Over the years, as…

Q: (B) Same setup as (A) with u(x, y) = ax + y and ap<1. What is the demand for X? (a) x(p, m) = m (b)…

A: Given The utility function: u(x,y)=αx+y ....(1) Here αp<1 The price of good x is 1 and…

Q: Suppose that annual income from a rental property is expected to start at $1,270 per year and…

A: Initial investment cost =7700 Rate of interest =9% per year Expected rent on the first year =$1270…

Q: The straight-line method is a constant depreciation but takes into account the interest rate…

A: Depreciation is put in the matching principle from the GAAP (Generally Accepted Accounting…

Q: Price $0 $5 $10 $15 $20 A Supply of Grapefruits E 0 5 10 15 20 Both $10 Both $50 Both $200 B Print…

A: Consumer surplus is the difference between the price the consumer actually pays and willing to pay…

Q: The populations of Abu Dhabi (National, Non-National, and Total) and UAE are shown in the following…

A: Annual growth rate is the percentage increase in the population in the current year over the…

Q: YVETTE AND AARON DEPOSITED A JOINT ACCOUNT AN AMOUNT OF P1000 AT BPI AT 5% INTEREST COMPOUNDED…

A: given that, Principal (P)= $1000 Annual Rate (R)= 5% Time (t in years)= 8 compounded annually

Q: In your own words, discuss the relationship between a t-test and a confidence interval.

A: Confidence interval refers to a range of potential values that, given a specific level of…

Q: If the R2=0.5647 and the SSR=357414. What is the SST? Write your answer to 2 decimal places.

A: R2 measures the proportion of variation in the dependent variable explained by independent…

Q: Which of the following would cause the supply of bread to become more elastic? The ability to easily…

A: The elasticity of supply tells us the responsiveness of quantity supplied with respect to the price…

Q: The wildlife department has been feeding a special food to rainbow trout fingerlings in a pond.…

A: Sample size, n = 42Mean of population, μ = 402.7The standard deviation of the population, s = 12.8…

Q: inelastic

Q: A company is considering two types of equipment for its manufacturing plant Pertinent data are as…

A: MARR is a helpful approach to weighing up whether investment merits the risks related to it. To work…

Q: Amy considers two investment opportunities (Stock A and Stock B) with the same price per unit in the…

A: A theory in economics called expected utility calculates the utility of an action taken when the…

Q: mer of two goods has utility U(X1, 2) = X1X2. She can purchase each good ce of p; dollars per unit.…

A: Introduction A person who uses two products has usefulness. She can pay a fixed charge of C…

Q: A study at a college on the west coast reveals that, historically, 36% of the students are minority…

Q: A consumer of two goods has utility u(x₁, x2) = x²x₂. In addition to her wealth w, the consumer…

A: Utility Function : U = x12x2 Budget Constraint : p1x1 +p2x2 = w Optimal consumption point is…

Q: Supposing that the Common Market countries proceed with their plans for economic union, should these…

A: Currency union: Two or more economies or countries share a currency in a currency union. A country…

Question

Don’t use excel Use formula or factor

1. You borrowed $10,000 from a bank at an interest rate of 9%,
compounded monthly. This loan will be repaid in 48 equal monthly
installments over four years. Immediately after your 25th payment, if you
want to pay off the remainder of the loan in a single payment, the amount is
close to

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

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, economics and related others by exploring similar questions and additional content below.

Similar questions

1) A child’s grandparents have opened a ₱586702 savings account for the child on the day of her birth. The account pays 1.7% compounded semiannually. The child will be allowed to withdraw the money when she reaches the age of 21. What will the account be worth at that time? Round your answer to 2 decimal places. 2) What simple interest rate (in %) is equivalent to 6.5% compounded quarterly if money is invested for 8 years? Round your answer to 2 decimal places.
You just obtained a loan of $15,000 with monthly payments for four years at 5.04 percent interest, compounded monthly. What is the amount of each payment?
Carlos buys a bond that will pay him $1,000 after 3 years. It accumulates interest at an annual interest rate of 7% with continuous compounding. What is the value of this bond today? $810.58 $816.30 $425.78 $310.29
2. What is the balance in an account at the end of 10 years if $25,000 is deposited today and the account earns 4% interest, compounded annually? quarterly?
1. An engineer plans to borrow $25,000 to open his own consulting business. He must repay $500 a month for 5 years. What is the nominal annual interest rate (compounded annually)? 2. An engineer is planning a 15 year retirement. She has decided that she will need to withdraw $4,000 each month from her bank account to live. How much money should she have in the bank at the start of her retirement, if the bank pays 0.25% interest per month (compounded monthly)? Hint: There are 15 x 12 compounding periods.
Assuming an interest rate of 10% compounded annually, answer the following questions:(a) How much money can be loaned now if $20,000 is to be repaid at the end of five years?(b)How much money will be required in five years in order to repay a $15,000did loan borrow now?
2. Which of these gives the highest effective rate of interest? 16.35% compounded twice every month 17.45% compounded every 4 months 15.85% compounded monthly 16.95% compounded bi-monthly
3. A person invests 4,500 in the hopes of receiving a return in eight years. What amount, in pesos, will be recovered eight years from now if the interest rate on the investment is 14.54 percent per year, compounded annually? 4. Calculate the compounded interest after 7 years and 9 months if 500,000 is placed at an annual rate of 11.28 percent compounded monthly. On January 1, 1988, a total of 5,200,000 was deposited at a rate of 24.50 percent compounded semi-annually. What was the value of the sum on January 1, 1993? 3 decimal places
You borrowed $35,000 to buy a new car from abank at an interest rate of 10.2% compounded monthly.This loan will be repaid in 96 equal monthly installments over eight years. Immediately after the 36thpayment, you desire to pay the remainder of the loanin a single payment. Compute this lump-sum amount
A ₱ 26,823 debt is to be paid off in eight equal quarterly payments at 3% compounded quarterly. What should be the amount of each payment if payments are done every beginning of the month?
27. How much do eight ₱ 64,055 quarterly payments amount at present, if the interest rate is 2 compounded quarterly?
An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 8% compounded quarterly. I required that the loan be repaid in eight annual payments starting at Year 4 with a $20K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment. Answer: ieff = P0Total = $ A/P0Total = $