Chapter MB, Problem 27M

When enrolling at the University, he signed a bill of exchange for an amount of ¢180,000.00 with a term of 90 days. The current interest charged is 5% per year and the default interest is 3% per month, you are planning your finances and you cannot cancel on the due date, so you must cancel with a delay of 25 days, it is requested: a) Calculate the amount of current interest b) Calculate the amount of default interest d) What annual effective interest rate (TEA) will you end up paying?

Dan is considering borrowing $375,000 to purchase a new condo. Based on that information, answer the following questions. Show all work.   Calculate the monthly payment needed to amortize an 8% fixed-rate 30-year mortgage loan. Calculate the monthly amortization payment if the loan in (a.) was for 15 years instead. In a few sentences, explain the effect of a smaller loan period. How does it influence the monthly payment and interest

After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000—with no ($0) down payment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount Payment Interest Paid Principal Paid Ending Balance 1 $45,000.00                     2                          3                          4                     -$0.02

While 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?

Marta needs some quick cash for books at the beginning of spring semester, so she borrows $500 at 9% simple interest for 4 months. How much interest will she pay, and what is the future value of the loan?.

To start a new business, Alysha intends to borrow $25.000 from a local bank. If the bank asks her to repay the loan in 5 equal annual instalments of $6,935.24, determine the bank's effective annual interest rate on the ipan transaction. With annual compounding, what nominal rate would the bank quote for this loan?

Sarah is planning to purchase a new house. To purchase the house, she will need to borrow $550,000 from the bank. The loan term is 30 years and the terms of the contract require monthly end of period payments (including interest and principle). The current interest rate offered by her bank is 3.5% per annum for a variable rate mortgage loan. If Sarah borrows the money from her bank and the interest rate decreases by 0.5% three years after the mortgage started, what would the new monthly repayment be?

While buying a new car, Alexander made a down payment of $1,100 and agreed to make month-end payments of $290 for the next 5 years and 7 months. She was charged an interest rate of 4% compounded semi-annually for the entire term.a. What was the purchase price of the car?Round to the nearest centb. What was the total amount of interest paid over the term?

Patricia Graham is planning on going to the university. To finance her education, her bank has agreed to lend her $125,000 on the first day of each year for the next three years beginning January 1, 2011. The annual interest rate of 10% is compounded yearly. Patricia plans to graduate on December 31, 2013. What will be the amount owing to the bank on that date?