Question 1: If you borrowed 18000$ at 4% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
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- QUESTION 2 a) Assume that you borrow $30,000 to purchase a new automobile and that you finance it for a four-year loan at the interest rate of 4% per year. If you make one payment per year for four years, what will the yearly payment be? What is the total amount that will be paid out on the loan?What lump-sum amount of interest will be paid on a $10,000 loan that was made on August 1, 2012, and repaid on November 1, 2016, with ordinary simple interest at 10% per year? How did it become 4.25 Years?QUESTION 3 1.1) Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made for 30 years, at a nominal interest rate of 4% p.a. Then find the value of the monthly withdrawals (rounded to the nearest whole number) that can be made from this annuity for a period of 20 years, at a nominal interest rate of 5% p.a. Future value of monthly deposits = Monthly withdrawal =
- Annuity 1. What is the current value of a $50 payment to be made at the beginning of each year, for three years if the prevailing rate of interest is 7% compounded annually?To have a total of $10,000 after 8 years, what principal do you have to deposit in a 4.5 percent saving account compounded monthly?Question 1 Vince loaned a certain amount from a cooperative and promised to pay it back with 2.32 times his original loaned amount. They agreed a nominal interest rate of 9.29% compounded every 4 months every year for n years. How many n years before he pay all his loan with interest? Answer rounded off with two 2 decimal places.
- Problem 2: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the interest rate is 10% compounded monthly, what is the present value of perpetuity? *Please show your correct and complete solution to the problem. Thank you!2. What is the balance in an account at the end of 10 years if $25,000 is deposited today and the account earns 4% interest, compounded annually? quarterly?1) A child’s grandparents have opened a ₱586702 savings account for the child on the day of her birth. The account pays 1.7% compounded semiannually. The child will be allowed to withdraw the money when she reaches the age of 21. What will the account be worth at that time? Round your answer to 2 decimal places. 2) What simple interest rate (in %) is equivalent to 6.5% compounded quarterly if money is invested for 8 years? Round your answer to 2 decimal places.
- Annabelle loaned a certain amount from ABC bank. She agrees to pay P5000 at the beginning of each quarter for 6 years with the interest of 10% compounded quarterly. 1. Find the present worth of her debts. 2. How much still remains unpaid just after she made her 4th payment? 3. How much still remains unpaid just before she made her 12th payment?Annuity 2. What is the accumulated value of a $25 payment to be made at the beginning of each of the next three years if the prevailing rate of interest is 9% compounded annually?How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000 in the account after 8 semi annuals?