A BUILDING CONTRACTOR GIVES A $14,000 PROMISSORY NOTE TO A PLUMBER WHO HAS LOANED HIM $14000. tNHE NITE IS DUE IN 9 MONTHS WITH INTEREST AT 9%. SIX MONTHS AFTER THE NOTE IS SIGNED, THE PLUMBER SELLS IT TO A BANK. IF THE BANK GETS A 10% RETUEN ON ITS INVESTMENT, HOW MUCH WILL THE PLUMBER RECIEVE??

Q: An employee is earning P 18,000 a month and he can only afford to purchase a car which will require…

A: Maximum amount of EMI that the employee can afford is 30% of his earnings i.e. 30% x P18,000 =…

Q: The average college graduate owes $22,500 in loans incurred over his/her college career. Now that it…

A: To determine the monthly interest rate charged on the student loan.

Q: 10,000 bank loan in 10 equal payments at a 10% effective annual interest rate. Immediately after her…

A: the amount of each of the 12 payments. given: P10,000 bank loan in 10 equal payments 10% effective…

Q: A man buys a house for $330,000. He makes a $150,000 down payment and amortizes the rest of the…

A: Given:

Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…

A: The question can be solved as follows:

Q: A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100)…

A: Part (a)The overdraft protection charge = 12% for each $100 (or portion of $100) borrowedThus 12% is…

Q: Bill Casler bought a $6000, 9-month certificate of deposit (CD) that would earn 9.2% annual simple…

A: Here, To Find: Part A. Value of CD =? Part B. Present value of CD before maturity =? Part C. Annual…

Q: Cardo borrowed money from a local cooperative. He received P18,420 but promised to pay P20,000 in…

A: Present Value = 18,420 Future Value = 20,000

Q: Mr. White takes a 15-year loan of $50000 to purchase an equipment for his factory. If the interest…

A: For calculation of monthly payment(PMT), we need to use the following formula PMT =PV*i/[1-1/(1+i)n]…

Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…

A: Amount at the end of 4 years = 24000 Total Terms(n) = 4*4 = 16 quarters Anbuak rate =6% Quarterly…

Q: A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is…

A: Accumulated amount required (A) = P 2000000 n = 20 years = 40 semiannual payments Let S = First…

Q: a factory savings plan, a workman deposits P 25 at the beginning of each month for 4 years, and the…

A: The amount being deposited at each month and that money grow with time and interest and period of…

Q: Alice Reed deposits $16,500 in Rye Bank, which pays 10% interest compounded semiannually.  What will…

A: In this we have to calculate the future value of the present value.

Q: Football coach Ira Blooper has just been fired as head coach at a large university. His buyout…

A: Buyout amount=7500000Interest rate=1%N=12×4=48months

Q: A bank offers a 12% interest to be compounded annually. How much should a teacher deposit now if he…

A: Present value is the value of future cash flows discounted at a specified interest rate for a…

Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…

A: Here, Initial Investment is $2,600 Interest Rate is 7.8% Compounding period for deposit and…

Q: 1. An employee obtained a loan of P 10,000 at the rate of 6% compounded annually in order to build a…

A: Since you have asked multiple questions, we will solve the first question as per policy. Please ask…

Q: A businessman wants to borrow P1,000,000 from a bank that charges a rate of interest of 12%…

A: The given problem can be solved using PMT formula in excel. PMT formula computes payment /…

Q: CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: f Brian wants to buy a house that cost $100000 the bank agreed to give him 80% of cost at 0.07…

A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…

Q: An Engineer promised to pay P 400,000 at the end of 120 days. He was offered a 12.5% discount if he…

A: In this we have to calculate the discount on both and from that we can get the simple interest…

Q: A bank offers a 10% interest to be compounded annually. How much should a teacher deposits if he…

A: Kindly refer the image attached below for solution.

Q: Suppose an individual makes an initial investment of $1,600 in an account that earns 8.4%,…

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

Q: A student is buying a new car. The car’s price is $37,500, the sales tax is 6%, and the title,…

A: Formula to calculate the monthly payments is: A = P[i(1+i)^n]]       (1+i)^n - 1 =P(A/P,i,n)

Q: If after she has made 12th payment, how much is still unpaid of the original principal?

A: Loan Payment: These are payments comprising of principal and interest payments made by the borrower…

Q: An engineering graduate starts a new job at $68,000 per year. Her investments are deposited at the…

A: future value of annuity formula: fva=pmt×1+rn-1r

Q: An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment.…

A: Cost of house = $100,000 Down payment = $20,000 Interest rate = 9% Time period = 20 years  Payment…

Q: Mr Ahmad wants to borrow $30,000 for a delivery Van for his Bakery business, which is rovided by…

A: Amount to borrow is $30,000 Interest rate is 9% per year Compounded monthly Time period is 5 year To…

Q: A company deposits $2.000 In a bank account at the end of every year for 10 years. If the bank pays…

A: The future value of annuity is the accumulated value of regular deposits at a given interest rate.…

Q: A buyer is considering purchasing a 35-acre parcel in Apache Junction, Arizona for economic…

A: Solution: As per the terms and conditions of the loan, the loan can be repaid in equal periodic…

Q: An Engineering firm deposits Kshs.1,000,000 into a bank that pays an interest of 5% per annum…

A: Future value = Present value * (1 + Interest rate)^number of years

Q: Curtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank,…

A: Given, Price of property is $230,000. Term of loan is 20 years. Interest rate is 9% per year.

Q: A bank employee passed the ICWA examination and his salary was raised by P30,000 starting from the…

A: Annunuity per year is P30,000 Interest rate compounded semi annually is 6% Time period is 20 years…

Q: ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal…

A: Given the following information: Loan amount: $250,000 Number of years: 30 years Rate of interest:…

Q: A bank offers a home buyer a 25-year loan at 7% per year. If the home buyer borrows $150,000 from…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…

A: The time value of money refers to the concept that states that the money present today is more…

Q: what percentage of the outstanding principal does the company pay in interest each​ month?

A: The correct answer is E) 0.66%

Q: Today, a businessman borrowed money to be paid in 10 equal quarterly payments starting at the end 2…

A: The amount borrowed is calculated as present value of quarterly payments. The present value of…

Q: 2: An engineer wishes to purchase an $80 ayment of $20 000 and borrowing the remaining $60 000,…

A: In this question payment per month needs to be find out. Loan amount is $60,000 and it is to be paid…

Q: A friend purchased a new sound system that was selling for $4200: He agreed to make a down payment…

A: The series of payments discussed here is a form of annuity where the fixed amount of cash flow is…

Q: A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of…

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

Q: Your friend signs a promissory note for $2,000 for 30 days with a rate of 2.25% attached. After…

A: A promissory note refers to the financial instrument in a written form between the two parties in…

Q: Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%, compounded…

A: Future value of a cashflow is the present value of the cashflow compunded at future date at…

Q: . A father borrows P10,000 for the enrolment of his son in college last August. He agrees to pay the…

A: Given, the interest rate is 9% compounded monthly. Number of months is 4. Sum borrowed is P10,000.…

Q: An employee is earning P 18,511 a month and he can only afford to purchase a car which will require…

A: salary =18511 monthly payment =0.3×18511=5553.3 monthly payment =5553.3 Period =4 years =48 months…

Q: Taggart Transcontinental currently has a bank loan outstanding that requires it to make three annual…

A: The question is based on the concept of time value of money .The bank has allowed the borrower to…

Q: A man makes a payment of 1450 at the beginning of every month on a bank that offers 6% interest. How…

A: To calculate the amount of loan we will use present value of annuity due formula that is as follows:…

Calculating the Return On A Loan