Find the amount of money owed at the end of 4 years if $30,000 is borrowed at 5% per year compounded weekly and no payments are made on the loan. (Simplify your answer completely. Assume there are 52 weeks in a year. Round your answer to the nearest 2 cent.)

Find the amount of money owed at the end of 4 years if $30,000 is borrowed at 5% per year compounded weekly and no payments are made on the loan. (Simplify your answer completely. Assume there are 52 weeks in a year. Round your answer to the nearest 2 cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: Suppose an individual makes an initial investment of $2,400 in an account that earns 6.6%,…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: You want to be able to withdraw $4000 from an account at the end of each 6-month period (that is,…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%,…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose an individual makes an initial investment of $2,200 in an account that earns 7.8%,…

A: An individual investor made deposits initially and continues to invest on monthly basis for 12…

Q: You plan to put some money into an account so that for the next 4 years you can withdraw $912 from…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: An engineer plans to borrow $100,000 to open his own consulting business. He must repay $2,150 a…

A: using financial calculator, N = 5*12 =60 PMT = -2150 PV= 100,000 FV = 0

Q: To pay off a loan of P1M, it is required that quarterly payments that increase by P1000.00 be made…

A: The cash flow diagram and the amortization schedule: A cash stream refers to a periodic cash inflow…

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: how much must you repay at the end of the 3 months?

A: While charging interest on the principal amount, there are two ways to calculate it- Simple interest…

Q: You deposit $24,000.00 in an account that pays 6% compounded quarterly and immediately start making…

A: In this problem you have to find out present value FACTOR and find out quarterly deposits.

Q: BALR Corp.borrows $600,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan payments are semiannual. Thus, the semiannual interest rate should be considered i.e. 6%/2=3%.…

Q: Suppose that you borrow $8,000 now, promising to repay the loan principal plus accumulated interest…

A: The future value of an amount is the future worth of an amount calculated based on the time value…

Q: You plan to make five deposits of $1,000 each, one every 6 months, with the first paymentbeing made…

Q: A house and lot costing ₱2 million was bought at a down payment of ₱500,000 and ₱1 million after one…

A: Compounding Interest refers to the calculation of interest on the principal amount plus the…

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…

A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…

Q: A couple who borrow $70,000 for 15 years at 6%, compounded monthly, must make monthly payments of…

A: Given: Monthly payment = $590.70 Loan = $70,000 Years = 15 Interest rate = 6%

Q: How much interest is payable each year on a loan of $4,000 if the interest rate is 10% (simple…

A: Following is the answer to the given questions

Q: Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal…

A: First let us calculate the 4 equal half yearly payments that need to be made. This can be calculated…

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 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…

Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month.…

A: Principal payment refers to the amount of loan that is paid back by the borrower. The loan amount is…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: Mr. J. Dela Cruz borrowed money from a bank and he receives P1,340.00 and promised to pay P1,500 at…

A: Note: The question provided are two separate ones. In the first one, I have calculated both the…

Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…

A: Formulas:

Q: you are taking a $100,000 mortgage loan for your business to be repaid over 5 years in equal…

A: Mortgage loan is the loan which is given by keeping something as collateral. This loan is for…

Q: The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest…

A: Deposit amount now (D) = $8000 Interest rate (r) = 7.5% Withdrawal after 5 years (W) = $2000 Period…

Q: amount of money owed at

A: Maturity value = A * (1 + (r/n))(nt), where, A = Loan amount r = Rate of interest n = Frequency of…

Q: Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a…

A: Time value of money(TVM) means that the money received today will be worth more than the amount of…

Q: Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a…

A: Present value of all the monthly installments should be equal to the loan amount. Equated monthly…

Q: A loan is to be repaid quarterly for 14 years that will start at the end of 4 years. If the interest…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Suppose you put $250 at the beginning of every month in a savings account that credits interest at…

A: Monthly deposit is $250. Annual rate of interest is 6%. Time period is 25 years. Compounding…

Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Suppose that $12,000 is invested in a savings account paying 5.6% interest per year. (a) Write the…

A: The future value is the amount to be received in future which were invested in an account which…

Q: Bank JPX is offering personal loans of $35,000 to be repaid over 6 years with payments of $625 per…

A: Here, To Find: Effective annual rate (EAR) =?

Q: Find the amount of money owed at the end of 3 years if $7,500 is borrowed at 5.5% per year…

A: Loan amount (PV) = $7500 Interest rate = 5.5% Quarterly interest rate (r) = 5.5%/4 = 1.375% Period =…

Q: You deposit $35,000.00 in an account that pays 6% compounded quarterly and immediately start making…

A: Amount Deposited = $ 35,000 Rate of Interest = 6% compounded quarterly

Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…

A: Using Excel PV function

Q: A loan is to be repaid quarterly for 9 years that will start at the end of 4 years. If the interest…

A: Quarterly payment (Q) = 10000 First payment starts after 16 quarters. Number of payments (n) = 36…

Q: BALR Corp.borrows $500,000 to be paid off in three years. The loan payments are semiannual with the…

A: Loan refers to the amount raised by an individual with the mode of borrowings from the lender with…

Q: A loan is to be repaid quarterly for 10 years that will start at the end of 4 years. If the interest…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: What is the size of 8 equal annual payments to repay a loan of $1,000? The first payment is due one…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: find the amount of money owed at the end of four years if 60,000 is well at 5% per year compounded…

A: Future value refers to the amount of money which is owed by the person after a time frame on an…

Q: Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a…

Q: A recent graduate's student loans total $18,000. If these loans are at 4.2%, compounded quarterly,…

A: Given: Loan = $18,000 Interest rate = 4.2% Years = 6

Q: What monthly payments must you make to pay off the $50,000 loan at 8.4% compounded monthly over 3…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Hamilton wants to accumulate ₺ 100.000 at the end of 4 years. It starts quarterly payments in a bank…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculation of Money owed after 4 Year or Future Value of loan

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of 50,000. First City has offered Hawley the alternatives listed here. Calculate the effective annual interest rate for each alternative. Which alternative has the lowest effective annual interest rate? a. A 12% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year b. A 9% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year c. An 8.75% annual rate on a discounted loan, with a 15% compensating balance d. Interest figured as 8% of the 50,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year