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?

Q: Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If…

A: Since more than one question is posted at a time. Answer for first question is only provided. Please…

Q: 3. Peter Parker and MJ decide to buy a one-bedroom condo in Manhattan. Determine the monthly payment…

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

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: Spencer would like to purchase a new car for $12,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function.

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used   In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: varisto would like to invest N$ 12 500 a month at the beginning of each month at an interest rate of…

A: Investment = $12,500 Interest rate = 12% Compounded = Quarterly  that 4 times in a year

Q: Peter wants to buy a house in Edmonds that costs $400,000. He plans to pay $100,000 as a…

A: given, price = $400,000 downpayment = $100,000 n =10  r=10% m=12

Q: 2. Andy is planning to buy a car when he graduates from college 4 years from now. The estimated…

A: One-time simple interest is often used for very relatively brief loans. Interest is often…

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: Hannah wants to have $ 4500 to help pay for a new deck in 7 years. If she wants to put her money…

A: FV = PV * e^(rt)

Q: If George wants to purchase a new home for $400,000 and finance $320,000 with a 4%, 30 year mortgage…

A: Excel Spreadsheet:

Q: Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: How much will he have to repay?

A: Simple interest means interest on principle amount. Principle = $3000 Interest rate = 5.5% Period =…

Q: Jon buys a car for $25,000. He pays $5000 down and pays the balance in 60 equal monthly payments. If…

A: Computation:

Q: How much should Ryan have in a savings account that is earning 2.50% compounded monthly, if he plans…

A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…

Q: You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into…

A: Given information: Annual payment is $1,100 Interest rate is 11% compounded annually Retirement age…

Q: Ken wants to remodel his basement and he wants to pay back no more than $18,000. If he gets a low…

A: Given Information, Payment made after 3 years =$18,000 Interest rate =0.0375/2=0.01875(As the period…

Q: How much does Steve need to invest today, If he wants to have $50,000 in 15 years? He opens an…

A: Present Value = Future Value / (1+r)^n Where, r = rate of return per period i.e. 7.8%/12 = 0.65% or…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: John wants to borrow 75,800 from a bank payable in 3 years and 9 months. if the bank charges 9.5%…

A: Note:  It is assumed that the loan is given on a simple interest rate basis. Simple Interest refers…

Q: 4/ Julieta and Eric are purchasing a home. They wish to save money for 15 years and purchase a house…

A: The concept of time value of money states that the same amount of money has more value today than in…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: You buy a $225,000 house and take out a loan that covers that amount which charges 4.5%, compounded…

A: Given data; Loan amount = $225,000 interest rate = 4.5% frequency of compounding = monthly Life of…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Kerry has a $1,973 per month mortgage payment. He decides to refinance his $204,000 balance at 5%…

A: Mortgage loan is a loan used either by real estate investors to raise funds to purchase real estate,…

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out…

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To…

Q: Bozo decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: The periodic payment is the amount that will be paid every period until the loan amortized which…

Q: Mark deposits $40,000 now into an account which will earn interest at a rate of 8% per year, how…

A: Present value of annuity concept is used to calculate the annual withdrawal amount.

Q: Robert recently borrowed $20,000 to purchase a new car. The car loan is fully amortized over 4…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: Jonathan wishes to buy a used chevy malibu for $12,500. He only has $1,000 for a down payment so th…

A: a) Value of chevy malibu = $12,500 Down payment =$1,000 Loan Amount =$12,500 -$1,000 Loan amount…

Q: James signed up for a 5-year loan on a sum of $10,000, with a 10% annual interest rate. The loan is…

A: A loan is a financial agreement between two parties wherein one party lends funds to another party.…

Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…

A: It will be enough if the present value of monthly payment of $700 is equal to or more than the car…

Q: Ken wants a $1,000 TV/sound system. He can't afford that amount, so he uses a credit card with 20%…

A: It is an example of simple interest. An interest of 20%/12 is given every month on $1000 for a…

Q: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…

A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…

Q: Mark deposits $40,000 now into an account which will earn interest at a rate of 8% per year, how…

A: Present value of annuity and future value concept is used to calculate with annual withdrawals.

Q: Fernando has the choice of taking out a 25-year loan for $150,000 at 6.6% interest, compounded…

A: Annuity payments refer to the set of fixed periodic payments that an investor or a depositor makes…

Q: If John wants to retire with $10,000 per month, how much principal is necessary to generate this…

A: Interest amount = Principal * Rate / 100 Or, Principal = Interest amount / Rate * 100

Q: 12. Pam promises to pay Sandy $4,000 in year 4 and another $6,000 in year 8 for a loan of $4,000…

A: For Sandy the cost = 4,000. It can also be said to be her initial cash outflow. Sandy's benefits or…

Q: Robin, who is self-employed, contributes $5000/year into a Keogh account. How much will he have in…

A: Given, PMT  - $5000 Interest rate(I/Y) - 6.5% Compounded Yearly PV = 0 N = 20 FV = ?

Q: what is the highest price he can afford to pay for a car?

A: Monthly Payment: It is the payment made on the loan amount borrowed. The monthly payment comprises…

Q: 6. Mahmoud has to pay three equal payments of $50,000 for a house he is buying, The payments are at…

A: In this problem we have calculate present value of all payments and remaining payments.

Q: Whiskers wants to buy a $400,000 house. She plans to pay $80,000 down and make monthly payments for…

A: True interest rate is the effective interest rate paid on borrowing a loan.

Q: Sean plans to invest $10,000 in a savings account that pays 1.5% compounded quarterly. His friend…

A: Using the FV function in excel

Q: Hudson would like to purchase a new car for $12,000. How much will his monthly payments be if he…

A: Loan amount (PV) = $ 12000 Interest rate = 6.5% Monthly interest rate (r) = 6.5%/12 =…

Q: He wants to set aside his annual bonus at the end of each year to pay her college costs in 18 years.…

A: in this problem we have to find future value FACTOR and than future value.

Q: Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money…

A: The amount required to invest today can be calculated with the help of future value function

Q: Please help me answer the following time value of money question. Michael makes a $500 investment.…

A: Investment = Present value = $500 Value of investment after 5 years = Future Value = $700 Time…