Jennifer took out a $42,000 student loan with a fixed interest rate to pay for college. Jennifer did not make payments on her loan for a period of6 years. After this time period interest had accrued, resulting in the loan balance increasing to $70,000.a. What is the 6-year growth factor for the amount that Jennifer owes on the loan?70000/42000Previewb. What is the 6-year percent change for the amount that Jennifer owes on the loan?Previewc. What is the 1-year growth factor for the amount that Jennifer owes on the loan?Previewd. What is the 1-year percent change for the amount that Jennifer owes on the loan?SubmitRoints possible aPreview

Growth factor is calculated by using final payment and initial payment. Financial payment is…

Answered: Jennifer took out a $42,000 student…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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Carrie took out a $48,000 student loan with a fixed interest rate to pay for college. Carrie did not make payments on her loan for a period of 9 years. After this time period interest had accrued, resulting in the loan balance increasing to $76,000. What is is the 9-year growth factor for the amount that Carrie owes on the loan? What is the 9-year percent change for the amount that Carrie owes on the loan? % What is is the 1-year growth factor for the amount that Carrie owes on the loan? What is the 1-year percent change for the amount that Carrie owes on the loan?
Jacqueline took out a $30,000 student loan with a fixed interest rate to pay for college. Jacqueline did not make payments on her loan for a period of 7 years. After this time period interest had accrued, resulting in the loan balance increasing to $56,000. What is is the 1-year growth factor for the amount that Jacqueline owes on the loan?
Rih took out a 4-year amortized loan for $15,000 at 10% to pay her tuition at a music conservatory. After 1 year, she refinanced the unpaid balance of $11,791 at a 5% interest rate. Find the monthly payments on the new loan; and the total amount saved on interest by refinancing. The monthly payments on the original loan are $ (Type an integer or a decimal.) The monthly payments on the new loan are $ (Round to the nearest cent as needed.) The total amount saved on interest by refinancing is $
Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded annually over a 15-year period. Starting in year 16, he begins making equal annual withdrawals $3500 for thenext 10 years. Assuming Andy's account is fully depleted after making these withdrawals, what is the amount invested in the account initially?
Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.
A couple borrows $935,000 for 7 years for the purchase of a vacation home at interest rate of 7 percent. The loan requires that the interest and principle be paid in equal, annual payments. The interest is determined on the declining balance that is owed. What are the required annual payments on the loan? How much is the principal loan balance reduced by during the first year?
Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $18,000 at a rate of 8%/year compounded monthly. Her bank is now charging 11.4%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 yr for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank? (Round your answers to the nearest cent.) interest paid to manufacturer $ interest paid to bank $ savings $
Dawn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of return with annual compounding. After age 35 she no longer adds to the account, but the money continues to compound. What was Dawn's out of pocket amount? How much will Dawn have accumulated by age 65?
A woman deposited $10,000 into an account at her credit union. The money was left on deposit for 10 years. During the first 5 years, the woman earned 9% interest, compounded monthly. The credit union then changed its interest policy; as a result, in the second 5 years the woman earned 6% interest, compounded quarterly. How much money was in the account at the end of the 10 years? Calculate the rate of return that the woman received.
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Darla purchased a new car during a special sales promotion by the manufacturer. She secured a loan from the manufacturer in the amount of $23,000 at a rate of 4.5%/year compounded monthly. Her bank is now charging 6.6%/year compounded monthly for new car loans. Assuming that each loan would be amortized by 36 equal monthly installments, determine the amount of interest she would have paid at the end of 3 years for each loan. How much less will she have paid in interest payments over the life of the loan by borrowing from the manufacturer instead of her bank?

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