Direction: Solve for the following problems involving interests. Show the solution. 2. Suppose Sana borrows P8,500 from Momoto add to her son's tuition payment. Shepromises to pay Momo back in eight months ata rate of 15% per year. Determine the totalpayment Sana must make to Momo.3. Suppose Jun borrows P15,000 in funds fromJoshua, and this loan is payable in two years.How much will Jun pay at the end of five yearsif the 13% interest rate Joshua mentioned wascompounded annually?

Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Answered: 2. Suppose Sana borrows P8,500 from…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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A student borrows $3000 from his uncle in order to finish school. His uncle agrees to charge him simple interest at the rate of 5.5% per year. Suppose the student waits two years and then repays the entire loan. How much will he have to repay?
A boy borrows 25000 from father. His father lends him the money, on the condition that he would be repaid within two years only. The boy gives 500 to his father every month for the first year. In the second year, how much should he pay his father every month to fully return his borrowed money? Use an interest rate of 5.2% per year, compounded daily. Use 365 days = 1 year
Rebecca Carlson purchases a car for $25,000 and finances her purchase by borrowing the money at 8% per year compounded monthly; she pays off the loan with equal monthly payments for 5 years. What will be the size of her monthly loan payment?
Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest compounded monthly.If Jane borrows$100,000 for 1 year, how much interest will she have paid and what is the bank’s APY?
Maria wants to have ₱750,000.00 at the end of 4 years for hergraduation expenses. She plans to deposit a certain amount at the end of each month to achieve this. Her bank pays 15% compounded monthly.a.) What is the monthly rate?b.) How many total deposits?
sky wants to purchase a new house that cost 1,440,000. The bank agrees to provide a loan to fixed interest rate of 5.88%. Compute her amortization when spread over a. 5 years b. 10 years. which loan term will she avail if she is recieving a salary of 20,000 per month
1. Edna invests $30,000 and buys an annuity that pays $2000 every 6 months (1st payment 6 months from now) for 5 years, followed by $1500 every 6 months for as long as possible. The annuity earns interest at 1 = 6% for the first 3 years, followed by i2) = 5% thereafter. How many semi-annual payments will Sally get in total? What would be the size of her final payment if it is made at the same time as his last regular $1500 payment? What would be the size of her final payment if it is made 6 months after his last regular $1500 payment? (a) (b) (c)
Zodwa needs R450 550,00 to buy a house. The bank approved her loan for the full amount at an interest rate of 25% per year, compounded quarterly. The loan must be paid off in ten years’ time. Determine the size of Zodwa’s quarterly payment What will the outstanding balance on Zodwa’s loan be at the end of seven years if the interest rate remains unchanged?
17) Nancy takes out a $500,000 loan for 25 years at 4% monthly. a) What is the monthly payment? b) What is the final payment?
Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan payments. 22. What should be the length of her loan? Round to the nearest tenth of a year.a. 5.5 yearsb. 5.6 yearsc. 5.7 yearsd. 5.8 years 23. How would an increase of $20 to her monthly payment affect the length of her loan?a. 0.9 years moreb. 0.9 years lessc. 0.8 years lessd. 0.8 years more
Jane took out a loan from the bank today for X. She plans to repay this loan by making payments of $520.00 per month for a certain amount of time. If the interest rate on the loan is 1.12 percent per month, she makes her first $520.00 payment later today, and she makes her final monthly payment of $520.00 in 7 months, then what is X, the amount of the loan? O An amount less than $3,501.00 or an anmount greater than $4,238.00 O An amount equal to or greater than $3,501.00 but less than $3,739.00 O An amount equal to or greater than $3,739.00 but less than $3,980.00 O An amount equal to or greater than $3,980.00 but less than $4,081.00 O An amount equal to or greater than $4,081.00 but less than $4,238.00
Solve the following problems: a. Give the discount of ₱ 750 for 15 years at 7% compounded monthly. b. At the birth of a child, what sum should his father invest in order to provide the child with ₱ 20,000 at age 21 if the money earns 10% compounded quarterly?

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