You pay off a debt of $900 by paying 22% of the remaining balance each month. Find a formula that gives the remaining debt D after t months.   How many months will it take for your loan balance to be equal to $600? Round your answer to the nearest whole month.

Q: out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per…

A: The given problem can be solved using FV function in excel. FV function computes outstanding loan…

Q: You borrow $10,000 from a bank for three years at an annual interest rate, or annual percentage rate…

A: The rate that is charged at an annual basis on the borrowing funds as well as earned annually on…

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The quarterly interest rate will be the rate with equates the present value of the quarterly…

Q: a) If you owe $10,940 and have 4 months to pay it off at the end of each month, assume an effective…

A: Part (a) Amount Owe = $10,940 Time period = 4 month Effective interest rate = 1% Part (b) Amount Owe…

Q: If you borrow $35,000 to buy a car on 10 years loan at 9% annual interest rate, what is the % of…

A: The monthly payment for the loan borrowed is calculated by the present value of the annuity formula.…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan amount =26100 Financial charges =9360 Monthly payment =985 Total =36 months  Monthly financial…

Q: You finance a $500 car repair completely on credit, you will just pay the minimum payment each month…

A: Given: Finance amount = $500 Minimum payment rate = 4% APR (Annual percentage rate) = 18.99%…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: Loan is amount borrowed by some investor or company from the stock market or taken by individual…

Q: a) If you owe $10,940 and have 4 months to pay it off at the end of each month, assume an effective…

A: Interest Payment: It is the interest payment made on the loan outstanding at a specific interest…

Q: You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24 equal…

A:

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: You have a credit card that has a balance of $⁢4760 at an APR of 12.99%. You plan to pay $⁢300 each…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Your business requests a 3-month loan for $450,000. What will be the interest paid at the end of the…

A: A loan is a type of debt that a person or another entity assumes. The lender, which is often a…

Q: A man borrows $200 at a 3% interest compounded monthy. If he pays the loan off at the end of 7…

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

Q: company makes payments of $1,600 at the end of every month, how long will it take to settle the…

A: Loan: It is the amount of credit taken by the borrower for a period from the lender. The lender…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which…

Q: Your business requests a 3-month loan for $550,000. What will be the interest paid at the end of the…

A: LIBOR rate is taken into consideration for calculating interest as it covers all risks associated…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: f you borrowed $12,000 for 8 months at 7% annual simple interest, how much must you repay at the end…

A: Interest = Principal * Time * Rate

Q: How many weeks would it take to increase the debt of a simple discount loan by 176% if the annual…

A: Current value (PV) = 100 (Assumed) Future value (FV) = 100*(1+1.76) = 100*2.76 = 276 Interest rate…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: Billy Thornton borrowed $155,000 at a rate of 7.25%, simple interest , with interest paid at the end…

A: The interest that Billy would have to pay in a 30-day month is computed as shown below:   Interest…

Q: how much would you save or lose by taking the debt consolidation company’s offer?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: You owe your best friend $2,000. Because you are short on cash, you offer to repay the loan over 12…

A: Answer a) $2000=$100(P/A, 0.5%,12) + G(P/G, 0.5%,12)$2000=$100 (11.6189) + G(63.214)G=$13.26

Q: A landscape architect accrued $7,862.42 in credit card debt. If the architect makes a monthly…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month You start…

A: By using credit cards, people usually spend more money and people who actually pay their credit…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Month Instalment Interest Paid = Opening Balance  x 0.31% Principal Opening Balance Closing Balance…

Q: cover

A: Time period to arrive at these costs can be calculated by using simple payback method: Payback…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: The loan amount is $26,100 The monthly payment is $989 The total finance charge is $9,504 The loan…

Q: Assume you have a balance of $1200 on a credit card with an APR of 24%, or 2% per month. You start…

A:

Q: How many months will it take to pay off a $705 debt, with monthly payments of $25 at the end of each…

A: EMI (EQUATED MONTHLY INSTALLMENT)- It is a fixed payment made by a borrowing party to the lending…

Q: A student takes out a college loan of $4000 at an annual percentage rate of 5%, compounded monthly.…

A: PV 4000       RATE 5%       COMPOUNDING PER YEAR 12       PMT 200       TIME PMT PRINCIPAL…

Q: A debt of $200,000 is accruing interest at 9% compounded daily. If it is to be repaid by monthly…

A: in this we have to calculate present value FACTOR and period required.

Q: You have a $22,000 credit card balance with an APR of 16.9%, compounded monthly, and you can afford…

A: PV 22000       RATE 17%       COMPOUNDING PER YEAR 12       PMT 400       TIME PMT PRINCIPAL…

Q: How many months will it take to pay off a $525 loan, with monthly payments of $15 at the end of each…

A: Compounded quarterly means the interest on the outstanding balance is calculated quarterly and added…

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: You plan to make five deposits of $1000 each, one every 6 months, with the first payment being made…

A: "In case when multiple questions are posted we will answer the first question when no other question…

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: 1.Amount of Loan pay off is $7975 2.Amount of Finance Charges rebate is $2882   Calculations :-…

Q: You’re prepared to make monthly payments of $190, beginning at the end of this month, into an…

A: NPER is the number of payments required to make to have an account balance 10,000 in future. Given:…

Q: Suppose you borrowed $ 15 000 at 8% monthly interest to repay it in monthly installments over 4…

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

Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: You have a credit card that has a balance of $11,020 at an APR of 20.49 %.You plan to pay $400 each…

A: The number of months required to pay off the balance can be computed with the help of NPER function…

Q: A local finance company quotes an interest rate of 17.2% on one-year loans. So, if you borrow…

A: In this question we need to compute the effective annual rate (EAR) from following details : Present…

Q: Suppose you take out a loan for 180 days in the amount of $12,500 at 15% ordinary interest. After 40…

A: For calculating the interest:

Q: a bank will lend a landlord 10,000 TL. The debt has to be paid back in 24 months with monthly…

A: Loan is contract between lender and borrower where lender provide funds to borrower for definite…

Q: We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: You have just purchased a car and taken out a $48,000 loan. The loan has a five-year term with…

A: In Installment payment system, loan in not paid collectively with interest due but interest and…

Q: Your business requests a 3-month loan for $450,000. What will be the interest paid at the end of the…

A: Loan Amount = $ 450,000 Business Risk = 2.0% LIBOR = 1.8%