18. Karen wants to borrow $5,000 and she is a bit desperate. She says “I’ll pay you $500/year at 11.7% interest until it’s paid off!” Under these terms, how long will it take Karen to pay back the $5,000?
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| 18. Karen wants to borrow $5,000 and she is a bit desperate. She says “I’ll pay you $500/year at 11.7% |
| interest until it’s paid off!” Under these terms, how long will it take Karen to pay back the $5,000? |
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- 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the purchase price as a down payment. Your annual salary is $44,000 and you can save 18% of this salary every year. How long will it take for you to save for the required down payment? about _____ years?2) Whiskers wants to buy a $400,000 house. She plans to pay $80,000 down and make monthly payments for 20 years. If the loan has an interest rate of 6% monthly with 3 points, what is the true interest rate?If the rate of interest (r) is 9%, then you should be indifferent about receiving $7500 in one year or ________. Your parents are planning to retire in 18 years. They currently have $250,000 and they would like to have $1,000,000 when they retire. What annual rate of interest would they have to earn on their $250,000 in order to reach their goal, assuming they save no more money? Stella deposits $45,000 in a savings account at a bank that offers interest of 3.5% on such accounts. What is the value of the money in her savings account in five years’ time?
- 15) Ben decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per month when will the loan be paid off? a) How much interest will be saved?14) John borrowed $12,000 to buy a new car and expects to pay $564.87 per month for the next 2 years to pay off the loan. What is the loan's rate of interest?Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low interest loan at 3.75% compounded semi - annually and plans to repay the loan in one payment in 3 years, how much can he borrow? Show all workings.
- Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a 30 year loan at 3.85% interest for the balance.a) How much is the loan amount going to be?b) What will the monthly payment be for Manuel and Aponi?c) How much of the first payment is interest?d) What is the total of the payments?e) How much interest was paid?When Maria Acosta bought a car 2 & 1/2 years ago, she borrowed $14,000 for 48 months at 8.4% compounded monthly. Her monthly payments are $344.42, but she'd like to pay off the loan early. How much will she owe just after her payment at the 2 & 1/2 year mark? (Round your answer to the nearest cent.)Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for 30 years with a 3.2% rate monthly with 2 points. If the loan is paid off after 12 years, what is the true rate?
- Donna wants to buy a house for $900,000.00. She makes a 15% down payment and borrows the rest by getting a 30-year mortgage. Her monthly mortgage payment is $3,803.75. What is the principal of her mortgage? What is the total she will pay on the loan?Shelly Franks is planning for her retirement, so she is setting up a payout annuity with her bank. She is now 35 years old, and she will retire when she is 65. She wants to receive annual payouts for twenty years, and she wants those payouts to receive an annual COLA of 4%. a. She wants her first payout to have the same purchasing power as does $15,000 today. How big should that payout be if she assumes inflation of 4% per year? b. How much money must she deposit when she is 65 if her money earns 8.3% interest per year? c. How large a monthly payment must she make if she saves for her payout annuity with an ordinary annuity? (The two annuities pay the same interest rate.) d. How large a monthly payment would she make if she waits until she is 40 before starting her ordinary annuity?Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th ebest deal he can get on a loan is 9% for 48 months a.) what will his payments be? b.)What is the total interest over the life of the loan?
