Help me fast John takes out a loan for $11400 at 8% interest compounded monthly and is making payments of $98 amonth. Calculate his remaining balance after 12 months.John's balance due after 12 months will be sTime Value of Money SolverEnter the given valuesN: =SolveNumber of Payment PeriodsI:% =SolveAnnual Interest Rate as a PercentPV: =SolvePresent ValuePMT:=SolvePaymentFV:=SolveFuture ValueP/Y:12Payments per YearC/Y:12Compounding Periods per YearPMT: =END

Loan is contract between lender & borrower where lender provide funds to borrower which is paid…

John takes out a loan for $11400 at 8% interest compounded monthly and is making payments of $98 a month. Calculate his remaining balance after 12 months. John's balance due after 12 months will be $ Time Value of Money Solver Enter the given yalues

John takes out a loan for $11400 at 8% interest compounded monthly and is making payments of $98 a month. Calculate his remaining balance after 12 months. John's balance due after 12 months will be $ Time Value of Money Solver Enter the given yalues

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

See similar textbooks

Related questions

Q: jose has determine dhe need to have $800000 for retirment in 30 years. His account earns 6%…

A: Amount need to be deposited in the account each month can be calculated using the formula of future…

Q: Joe opens an investment account with an initial deposit of $200. He then sets up monthly deposits of…

A: Future value = Present value * (1+r)^n Where r =rate of interest per period i.e. 5.25%/12 = 0.4375%…

Q: You decide to make regular deposits every 2 weeks into an account that earns 5% annual interest,…

A: The future value of the deposits is $29,000. The annual interest rate is 5%. The maturity period is…

Q: You deposit $23,000.00 in an account that pays 4% compounded annually and immediately start making…

A: In this question future value would also be find out so that payment per year can be find out.

Q: he outstanding balance on Peter's credit card account is 3380 dollars. The bank issuing the credit…

A: Monthly payment(PMT) of a credit card amount can be calculated by using this equation PMT…

Q: You overhear your friend saying that he is repaying a loan at P5,000 every month for the next three…

A: Using excel PV function

Q: Tshepo needs R5 000 urgently. He goes to the bank and borrows the money at an interest rate of 28%…

A: Compound interest is the interest earn on interest. The rate at which compound interest accrues…

Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and in…

A: Given, Deposit amount = $10,000 Nominal interest rate = 12% (Compounded monthly) Additional…

Q: Meghan invested his savings in a bank at 3.75% compounded quarterly. How much money did he invest to…

A: To calculate investment value required after 8 years, present value of annuity due formula will be…

Q: You have just deposited $9,500 into an account that promises to pay you an annual interest rate of…

A: GOAL (FV) 27940 INTEREST RATE 6.20% YEARS 8+12=20 PMT 0 PV 9500

Q: An Engineer deposits 7,000 pesos every year end in a savings account that pays nominal annual…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: You deposit $500 each month into an account earning 5% interest compounded monthly. a) How much…

A: The future value is the value of amount in future that has to paid or received at current or in…

Q: Steve invests $1,800 in an account that earns 3.7% annual interest, compounded continuously. What is…

A: Present Value = $1,800 Interest rate = 3.7% Time Period = 10 Years

Q: Find the cash value of a sala set that can be bought for 2,500 down payment and 288 a month for 36…

A: Cash value =loan amount +down payment We need to use present value of annuity formula to calculate…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Given information: Initial deposit amount is $900 Monthly deposit of $80 Interest rate is 3%…

Q: How much would tom’s initial balance have to be? show work and formula

A: Present Value of Future Amount = FV / (1 + r)^n Here, FV = Future Value i.e. $30000 r = Periodic…

Q: An Engineer bought a house and lot for which he paid a 10% down-payment, worth 200,000 Pesos; and…

A: Given, The down payment is 200,000 pesos, which is 10% of cost of house. Interest rate is 15%…

Q: Saud borrowed $90,000 now. He will pay off the loan with 10 equal quarterly payments. The first…

A: To find the quarterly payment one can apply the formula in excel called PMT which calculates the…

Q: You deposit $100 each month into an account earning 4% interest compounded monthly. a) How much…

A: Amount Deposited Each month is $100 Interest rate is 4% Compounded monthly Time period is 15 years…

Q: William got a second loan for 78,000 dlls to be payable in 5 years with interest rate of 7.5 percent…

A: Loan amount (PV) = 78000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual interest…

Q: adam made an investment of $33,000. The investment pays 7.75% p.a. compounded quarterly. He will be…

A: Amount of investment made is $33,000 Interest rate is 7.75% P.A. Compounded Quaterly To Find:…

Q: You deposit $27,000.00 in an account that pays 4% compounded annually and immediately start making…

A: Given:

Q: You deposit $350 each month into an account earning 3% interest compounded monthly. a) How much will…

A: Given, Deposit amount (C) = $350 each month Timer period (n) = 35 years*12 = 420 interest rate (i) =…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Given, Wall unit Cost =$2300 Down payment =$600 Loan Installment = 48 months Payments = $43.5 per…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance…

A: Financing an item provides a facility to the purchaser to make the payment of the item in small…

Q: John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.5% interest for…

A: Question pertains to calculation of interest amount in case of daily compounding. Calculations are…

Q: Tim Houston purchased a wall unit for $2,400. He made a $600 down payment and financed the balance…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…

A: Monthly deposit (P) = $ 100 Interest rate = 8% Monthly interest rate (r) = 8%/12 =…

Q: payment

A: Monthly payments are nothing but the payment which has to be made by the borrower every month. The…

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: David went to the bank and opened a 54 month CD compounded monthly with an APR of 4.22%. He…

A: Calculation of future value, interest and percentage increase: Excel spreadsheet:

Q: Barbara wants to accumulate $10000 by the end of 10 years. She starts making quarterly deposits in…

A: Annuity refers to series of equalized payments that are either made start or end of definite…

Q: Today, Engr. Go borrowed money to be paid in 15 payments for 15 months. If the interest rate is 9%…

A: We need to use loan amortization formula to calculate loan amount or amount borrowed. P…

Q: Mr. Gordon plans to invest $600 at the end of each month in an account that pays 12%, compounded…

A: a) An ordinary annuity may be a set of identical installments paid over an indicated sum of the time…

Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…

A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…

Q: The Clarks are arranging a $90,000 mortgage loan from their bank. The mortgage is to be amortized by…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: Keira wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded MONTHLY.…

A: Information provided: Term = 9 years Interest rate = 7.2% compounded monthly Principal = $4300…

Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…

A: Investments are the ways through which money is saved in various financial instruments and accounts…

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Craig is saving for a $3500 sound system. He plans to deposit $175 at the end of every 3 months into…

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

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: Suppose you deposit $3600 to open an account that earns 6% interest compounded monthly. You are…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: If you borrowed S 15,000 to be repaid in 20 equal quarterly payments and after your 10th payment you…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Tim needs to borrow money today. He agrees to pay back the loan via 30 equal monthly installments of…

A: Present Value of annuity refers to the value of cash flows today of a series of equal cash flows or…

Q: Barbara wants to accumulate $25000 by the end of 4 years. She starts making quarterly deposits in…

A: We need to use this equation for quarterly payment(PMT) and future value(FV) of annuity PMT…

Q: 1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Question

Help me fast

John takes out a loan for $11400 at 8% interest compounded monthly and is making payments of $98 a
month. Calculate his remaining balance after 12 months.
John's balance due after 12 months will be s
Time Value of Money Solver
Enter the given values
N: =
Solve
Number of Payment Periods
I:% =
Solve
Annual Interest Rate as a Percent
PV: =
Solve
Present Value
PMT:=
Solve
Payment
FV:=
Solve
Future Value
P/Y:
12
Payments per Year
C/Y:
12
Compounding Periods per Year
PMT: =
END

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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?
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.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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?
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?