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Jenna is expected to settle a loan on February 3rd, 2018 by paying $5,000. What amount should he pay if he decides to settle it on June 20th, 2017 instead? The interest rate is 1.88% compounded quarterly.
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- A divorce agreement entered into in 2017 requires Alice to pay her former spouse 50,000 a year for the next ten years. Will the payments qualify as alimony? Why or why not?On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.Daniel is expected to settle a loan on March 24th, 2018 by paying $6,500. What amount should he pay if he decides to settle it on June 11th, 2017 instead? The interest rate is 5.46% compounded monthly.
- Kavish loans $15,000 to his business partner on June 1st, 2020. The terms of the loan state that interest of 5% compounded annually will be paid when the loan matures on May 31st, 2022. What is the amount of interest income that Kavish must report in each year from 2020 2022? Show your calculations.Kylie 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?On June 26, 2019, Naomi obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020. What is the Ordinary simple interest using exact time?
- Your father offers to give you $400 on January 1, 2019. You will then make six additional equal payments each 6 months from July 2019 through January 2022. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2022? What is the Effective Annual Rate (EAR) earned on the bank account in part f? What is the Nominal Interest Rate or Annual Percentage Rate (APR) earned on the account?Regine agrees to settle a P100,000 loan borrowed from provident by making monthly salary deduction every 13th of the month for ten months beginning June 13, 2022. How much does she pay if interest is 1% every month? Hint: First payment is deferred after 5 months (periods). Accumulate the loan principal first then equate this to the present value of the deductions on May 13, 2023.If you have only $750 on January 1, 2019, what interest rate, compounded annually for 3 years,must you earn to have $1,000 on January 1, 2022?e. Suppose you can deposit only $200 each January 1 from 2019 through 2022 (4 years). What interestrate, with annual compounding, must you earn to end up with $1,000 on January 1, 2022?f. Your father offers to give you $400 on January 1, 2019. You will then make six additional equalpayments each 6 months from July 2019 through January 2022. If your bank pays 8% compoundedsemiannually, how large must each payment be for you to end up with $1,000 on January 1, 2022?g. What is the Effective Annual Rate (EAR) earned on the bank account in part f? What is the NominalInterest Rate or Annual Percentage Rate (APR) earned on the account?
- Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at the end of each next 3 years and the account earns 8% per annum,the amount he will have in the account by the end of 2021 will be closest toSandy's parents would like to have an annuity pay her $600 at the beginning of every month from September 1, 2012, to April 1, 2017, to help with her university tuition and living expenses. On May 1, 2017, they would like to give her a graduation gift of $6,000. If the annuity can earn 6.15% compounded monthly, how much money must be in the account on September 1, 2012?
