). A loan amount of $26,044 will be due after 8 years. Tim has a deposit plan to deposit $5,543 at the beginning of each year for the next 8 years. The deposit rate is 10% per annum. Find the deficit or surplus amount from this deposit plan to repay the total loan amount after 8 years if the interest is being compounded monthly. Round your answers to 2 decimal points.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
B). A loan amount of $26,044 will be due after 8 years. Tim has a deposit plan to deposit $5,543 at the beginning of each year for the next 8 years. The deposit rate is 10% per annum. Find the deficit or surplus amount from this deposit plan to repay the total loan amount after 8 years if the interest is being compounded monthly. Round your answers to 2 decimal points.
Step by step
Solved in 2 steps with 2 images