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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Imagine you have a credit card balance of $1,000 that you would like to pay off within one year. The annual interest rate on that credit card is 16%, but interest compounds monthly, and you are required to make a payment each month. What amount would you have to pay monthly to pay off this balance within one year? Question options: a $90.71 b $80.66 c $83.33 d $99.12You borrow $10,000 from a bank for three years at an annual interest rate, or annual percentage rate (APR), of 12%. Monthly payments will be made until all the principal and interest have been repaid. Solve, a. What is your monthly payment? b. If you must pay two points up front, meaning that you get only $9,800 from the bank, what is your true APR on the loan?
- You have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the minimum payment of 50.00 each month: How much of the 50.00 would go towards interest? What PERCENTAGE would go towards reducing the principle (the balance)If you want to have $25,000 saved in 5 years and it earns an interest rate of 3.5% compounded monthly, what is the amount you need to save each month? Find the payment. Do not enter the negative sign from your calculator (if there is one) or the dollar sign. Round to two decimal places.Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $19.80. (4.15) Solve, a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10 extra each month (for a total of $29.80), how long will it take to repay the $1,100 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b).
- The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each month, how much will you have in your account in 5 years? (Report an integer) (Notes: remember from our chapter 2 lecture videos, when you use financial calculator, I/Y is the "period interest rate" and N is the "number of periods". For example, if annual rate is 12% for 5 years, and if it compounds quarterly, then one period is one quarter. Therefore, the I/Y should be the quarterly rate and equal to 12/4=3, and N is the number the quarters and equal to 5*4=20 (quarters).)You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly payments of 289.30. The interest rate is 5.7% compounded monthly , what would be the unpaid balance immediately after the 39th payment? What is the equity after the 39th payment?Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after nine months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $18,263.73 $18,828.59 $19,205.16 $19,581.73
- Assume that you have a monthly installment for ten years, your loan is 10000, and the interest rate is 1% but it changes at the beginning of February rising 1%, and calculate the new installments. 10000/10=1000 yearly installment 1000/12 monthly installments But the interest rate changed from February, so the first month's installments should be 1000/12, and the second month's installments should be 10000-(10000-1000/12)*3% I want to know how to calculate that in a formula. I think we use AIFV=(1+0.03/12)^20 something like that to calculateConsider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly payments in order to pay off the balance in 11 year, what is the total amount you will pay? Round your answer to the nearest cent, if necessary.Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 12 months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $12,264.16 $11,680.15 $11,329.75 $11,913.75
