1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the remaining money. Chris is approved for a loan for 5 years at 3.9 % p.a. interest compounded monthly. Answer the following questions, showing the process used for each calculation. A. Calculate Chris' monthly repayments B. Calculate the total interest charged on the loan C. Calculate the outstanding balance after 3 years

1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the remaining money. Chris is approved for a loan for 5 years at 3.9 % p.a. interest compounded monthly. Answer the following questions, showing the process used for each calculation. A. Calculate Chris' monthly repayments B. Calculate the total interest charged on the loan C. Calculate the outstanding balance after 3 years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $11,500 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
5. Jenna received a 15 year loan of $375,000 to purchase a house. The interest rate on the loan was 5.10% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 3? c. By how much will the amortization period shorten if Jenna makes an extra payment of $30,000 at the end of year 3? Answer in years and in months.
Juni buys a new car. Her auto loan is $12,000 with an annual interest rate of 3% compounded monthly for 5 years. Her monthly payment is $287 The following table shows the first payment in the amortization schedule. Payment number Loan Amount Payment Interest Principal Remaining Balance 1 12,000 287 ? ? ? Interest: $30 Interest: $8.61 Principal: $278.39 Principal: $257 Remaining Balance: $11,743 Remaining Balance: $ 11,721.61
please help me
Laura received a 15 year loan of $245,000 to purchase an RV. The interest rate on the loan was 4.10% compounded monthly. a. What is the size of the monthly loan payment? %24 Round to the nearest cent b. What is the principal balance of the loan at the end of 4 years? Round to the nearest cent c. By how much will the amortization period shorten if Laura made an extra payment of $51,000 at the end of the year 4? years months Express the answer in years and months, rounded to the next month
4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 7% effective annual interest. How much is in the second account after 35 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year Amount in 1st account Amount deposited into 2nd account 0 1 2 3 : : 34 35
Kia deposited $1,100, at the BEGINNING of each year for 25 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. A. $73,441.24 B. $80,416.53 C. $86,849.86 D. $87,949.86
Nikul
Jack and Jill borrow $21,000 at 6.4% amoritzed over 7 years to drill a well and renovate their kitchen and bathrooms. Assuming that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 2 years? (Round to nearest penny and enter, for example, as 123456.78) Answer: Check
Subject: accounting
c
Odysseus buys an Odyssey for $45,000.00. He pays $5000.00 down and the remainder in equal monthly payments over 5 years at 8% c.m. a. Calculate the amount of the monthly payment. b. Calculate the total interest charges. c. Determine the balance owing just after the 36th payment. Show the Merchant's Rule. d. Determine the total principal paid during the third year.

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