5. Wen Jing received an excellent interest rate for her car loan of $11,000. Calculate the nominal interest rate and periodic interest rate of her loan if it accumulated to $11,170 in five months and interest was compounded quarterly.
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Calculating periodic interest rate and nominal interest rate
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- Mark Harris borrowed some money from his friend and promised to repay him $1,250, $1,340, $1,490, $1,560, and $1,560 over the next five years. If the friend normally discounts investment cash flows at 8.0 percent annually, how much did Mark borrow? (Round answer to 2 decimal places)1. Mary Rose borrowed money from a bank amounted 12,000 with an interest rate of 11.5%, the monthly installments are 313.07. how long will it take to repay the loan? Supposed, Mary Rose has borrowed money from a financial institution that will be paid for about 2 years with monthly installments of 6,000. The bank charge 6% interest annually. How much is the principal loan?James borrows $10,000 from the bank. By the time the loan is repaid, James has paid thebank $10,400. What does the additional $400 represent?A Inflation rateB Purchasing power of moneyC InterestD Investmen
- A person invested two amounts in a bank for a full year at a common interest rate.The total benefits on the two amounts is $ 220.If you know that the interest of the second amount, which equals $ 3,000 exceeds the interest of the first amount by $ 140.If you know that the first amount was invested for a period of 6 months, and the second amount was invested for a period of 9 months.What is the value of the first amount and what is the interest rate?Katie invested $191 for 16 months in a bank and received a maturity amount of $209.50. If she had invested the amount in a fund earning 2.30% p.a. more, how much would she have had received at maturity? Jaspreet borrowed $6,000 at 4.4% p.a. and repaid the loan on March 14, 2024. Jaspreet paid $249.78 in interest. How many days ago had he received the loan? Katie invested $5,800 for 358 days at 2.6% p.a. How much more interest would she have earned on the investment if the interest rate was 3.0% p.a. instead of 2.6% p.a.?A person invested two amounts in a bank for a full year at a common interest rate.So the total interest on the two amounts was $ 320.If you know that the interest of the second amount, which equals $ 3,000 exceeds the interest of the first amount by $ 160What is the value of the first amount and what is the interest rate?
- Falco Inc. financed the purchase of a machine with a loan at 2.82% compounded quarterly. This loan will be settled by making payments of $8,000 at the end of every quarter for 5 years. a. What was the principal balance of the loan? Round to the nearest cent b. What was the total amount of interest charged? Laura invested $650 at the end of every month in an investment fund that was earning interest at a rate of 4.44% compounded monthly. She stopped making regular deposits at the end of 5 years when the interest rate changed to 6.66% compounded quarterly. However, she let the money grow in this investment fund for the next 2 years. a. Calculate the accumulated balance in her investment fund at the end of 5 years. Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 7 years. Round to the nearest cent c. Calculate the total interest earned over the 7-year period.On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly by making a $100 deposit. At the same time he set up an investment fund with a nominal interest rate of 4.6% payable quarterly. John deposited $400 into the investment fund at the end of each quarter with his first payment being on July 1, 1998. The quarterly interest payments from the fund were directly deposited into the 3.4% savings account. Find the balance (FV) in the 3.4% savings account on July 1, 2003, just after the twentieth interest deposit is received from the 4.6% fund and monthly interest 0f 3.4% has been credited.Diana invested her savings of $1,775 in a savings account that was earning simple interest at 2.25% p.a. She also invested $3,125 in her friend's business at 0.46% p.m. a. What is the interest rate per month that is equivalent to 2.25% p.a.? %Round to two decimal places b. What was the total interest earned from both investments at the end of 7 months? Round to the nearest cent
- Bright Inc. will be receiving $5,400 at the end of every month for the next 4 years. If these payments were directly invested into a fund earning 5.50% compounded semi-annually, what would be the future value of the fund at the end of 4 years? Jamie invested $875 at the end of every month in an investment fund that was earning interest at a rate of 4.62% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.63% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 10 years. Round to the nearest cent c. Calculate the total interest earned over the 10-year period.Mr. Pascua wants to know the effective interest rate of his 310,000 bank loan with interest of 11% compounded quarterly. Find the effective rate.Rafael started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be in the fund after 6 years? WSS plumbing wishes to pay off a debt of P130,000 in 2 years. What regular payment would they need to make every month at 12% interest compounded monthly? To pay for his debt at 12% compounded quarterly, Riley committed for 8 quarterly payments of P28,491.28 each. How much did he borrow?