On September 1, 2021, Susan Chao bought a motorcycle for $33,000. She paid $1,000 down and financed the balance with a five-year loan at an annual percentage rate of 7.5 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2021). Two years later, at the end of October 2023, Susan got a new job and decided to pay off the loan. If the bank charges her
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- Carol Travis started a paper route on January 1, 2020. Every three months, she deposits $1,050 in her bank account, which earns 8 percent annually but is compounded quarterly. On December 31, 2023, she used the entire balance in her bank account to invest in a contract that pays 6 percent annually. How much will she have on December 31, 2026? (Use a Financial calculator to arrive at the answer. Round "FV Factor" to 3 decimal places. Round your intermediate and final answer to the nearest whole dollar.) Future valueKylie takes out a $12,500 loan on May 1, 2023, to be re-paid over 5.5 years, with the first payment at the end of that month. For the first 2 years, interest is charged at an annual rate of 4%. After that, the annual interest rate increases to 5.4%. What monthly payment is needed to ensure the loan is paid in time?Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at 6 3 8 % for thirty years. (Round your answers to the nearest cent.) (a) Find her monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $ (d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?$ per month
- Tim Huston purchased a wall unit for $2,200. He made a $600.00 down payment and financed the balance with an installment loan for 48 months. If Tim’s payments are $42.59 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places)Mrs. Lim's purchase contract for a house and lot specifies that she will pay $500,000 cash and $45,000 at the end of each month for 10 years at the interest rate of 17% converted monthly. What is the cash value of the house and lot? Round off answer to the nearest peso.Bridgit has purchased a new home at auction for $655,000. To be able to pay for the house, she takes out a reducing balance loan from the bank for the sum of $520,000. The bank charges interest at the rate of 8.75%, compounding quarterly. Bridgit plans to pay off the loan over a period of 20 years. a. What quarterly instalment must Bridgit pay the bank? Express your answer to the nearest cent. b. How much interest will Bridgit pay over the period of the loan? 0 1 c. Complete the amortization table for the first 2 payments made on this loan. Quarter Payment Interest Principal reduction 2 0 Working space provided: 0 0 Balance $520,000 oH .0022 c mora sauber od zodat bas obem
- Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.Miss Clare Jarrett just closed a loan of $400 000 to assist with the purchase of equipment and fixtures for her small business. This loan will be repaid in five equal annual end-of-year instalments at an interest rate of 8% compounded annually. Complete the following: Determine the yearly payment Prepare an amortisation schedule What is the loan balance just after the end of year three? How much interest expense will Clare pay over the life of the loan? What would be the effective rate of interest if interest were to be compounded quarterly? Semi-annually?Kerri James is considering the purchase of a car, which will cost her $24,600. She will borrow the entire purchase price and make monthly payments over the next six years. The first payment is due next month and the annual interest rate is 3.00%. She will owe $____ on the car immediately following the 18th payment. A. 18,858.19 B. 18,531.57 C. 20,757.33 D. 19,184.00 E. 23,258.56
- Megan invests $1, 500 at the end of each year into an account earning 2% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 8% effective annual interest. How much is in the second account after 30 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it inWhile buying a new car, Thomas made a down payment of $1,000.00 and agreed to make month-end payments of $350.00 for the next 4 years and 7 months. If she was charged an interest rate of 3.00% compounded quarterly for the entire term, answer the following, rounding to the nearest cent. a. What was the cost of the car when Thomas purchased it? Round to the nearest cent b. What was the total amount of interest paid over the term?Giselle wants to withdraw $7500 at the beginning of every three months for 20 years starting on the day of her retirement. If she will retire in 24 years and interest is 3.95% compounded quarterly, how much must she deposit into an account at the beginning of every quarter for the next 24 years starting now? Show all inputs and any other necessary work below. This question requires two separate steps. Show all inputs for both steps and any other necessary work. P/Y = P/Y = C/Y = C/Y = N = N = IY = I/Y = PV = PV = PMT = PMT = FV = FV = Final Answer: