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- Suppose you borrowed $30,000 on a student loan at a rate of 8% and must repay itin three equal installments at the end of each of the next 3 years. How large wouldyour payments be; how much of the first payment would represent interest, howmuch would be principal; and what would your ending balance be after the firstyear? (PMT = $11,641.01; Interest = $2,400; Principal = $9,241.01; Balance atend of Year 1 = $20,758.99)In order to pay for school, you borrow $22,000 at 12 percent/year compounded monthly. You do not pay back any of it until the end of the first month following year 4, and you intend to have it paid off by the end of year 7. c. How much interest is in the sixty-fourth month's payment? How much principal? d. How much interest is in the sixty-eighth month's payment2.- $3,500 is deposited into a savings account at the end of each semester for eight and a half years. If no withdrawals are made, how much money will be in the account? The interest rate is 5.5% per semester compounded every semester. Options: 100137.28 102512.37 96789.21 94487.41
- In order to pay for school, you borrow $22,000 at 12 percent/year compounded monthly. You do not pay back any of it until the end of the first month following year 4, and you intend to have it paid off by the end of year 7. a. What are your monthly payments during years 5, 6, and 7? b. How much interest is in the sixtieth month's payment? How much principal? c. How much interest is in the sixty-fourth month's payment? How much principal? d. How much interest is in the sixty-eighth month's paymentA student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly. How much money will the student have at the end of 5 years? How much interest will the student have earned in 5 years? What is the effective yield (APY)? Ending Value: $ (round to the nearest cents) Interest: $ (round to the nearest cents) APY: (written as a decimal, round to the fourth decimal place) Pt 2 A student puts $10,000 in a savings account that pays 16% annual interest, compounded monthly. How much money will the student have at the end of 5 years? How much interest will the student have earned in 5 years? What is the effective yield (APY)? Ending Value: $ (round to the nearest cents) Interest: $ (round to the nearest cents) APY: (written as a decimal, round to the fourth decimal place) Pt3 A student puts $10,000 in a savings account that pays 16% annual interest, compounded daily. How much money will the student have at the end of 5 years? How much…A debt of $10,000 is to be repaid by equal Monthly payments at the end of every month for 1 year. Interest is 6% compounded Semi-Annually. What is the size of the payment? Question options: $810.94 $851.72 $860.33 $856.10 Solve on white paper or typed. Not in excel
- Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2 years. If the interest rate is 10% compounded quarterly and the quarterly payment is P2,000, how much did he borrow? A.P17, 504.13 B.P16,660 C.P14,366.45 D.P14,725.61A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly, andthere will be 32 payments beginning 1 month after graduation. What is the monthly payment? What isowed after the first 2 years of payments? Please show work clearly, and cash flow diagram..A debt of $39 comma 000 is repaid over 14 years with payments occurring monthly. Interest is 10% compounded semi dash annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 139? (c) What is the interest paid on payment 140? (d) How much principal is repaid in payment 140? Do not use chat gpt. Thank you!
- On each December 31, you plan to transfer $2,000 from your checking account into an investmentaccount. The investment account will earn 4 percent annual interest, which will be added to theaccount balance at each year-end. The first deposit will be made December 31, 2015 (at the end ofthe period).Required (show computations and round to the nearest dollar):1. What will be the balance in the account at the end of the 10th year (i.e., 10 deposits)?2. What is the total amount of interest earned on the 10 deposits?3. How much interest revenue did the fund earn in 2016? 2017?A4 Upon graduation, Terrence purchases a home theatre system through financing $5,000 by his credit card. The card charges 21 percent per year compound monthly. He fully pays the load with the following plan: Pay X in principal at the end of months 1, 2, and 3; pay $2X at the end of months 4, 5, and 6; then 3X at 7, 8, 9; and finally $4X at 10, 11, 12. In addition, Terrence pays the accumulated interest at the end of each interest period. What is the value of X? Make a table to show the payment amounts (principal plus interest) and schedule for the loan.During four years of college, Nolan MacGregor's student loans are $4,000, $3,500, $4,400, and $5,000 for freshman year through senior year, respectively. Each loan amount gathers interest of 2%, compounded quarterly, while Nolan is in school and 3%, compounded quarterly, during a 6-month grace period after graduation. (a) What is the loan balance (in dollars) after the grace period? Assume the freshman year loan earns 2% interest for 3/4 year during the first year, then for 3 full years until graduation. Make similar assumptions for the loans for the other years. (Round your answer to the nearest cent.)$ (b) After the grace period, the loan is amortized over the next 10 years at 3%, compounded quarterly. Find the quarterly payment (in dollars). (Round your answer to the nearest cent.)$ (c) If Nolan decides to pay an additional $60 per payment, how many payments will amortize the debt? (Round your answer to two decimal places.)paymentsWhat amount (in dollars) should be added to the last…