8. Brian and Jennifer each take out a loan of X. Jennifer will repay her loan by making one payment of 850 at the end of year 6. Brian will repay his loan by making one payment of 1325 at the end of year 6. The nominal semiannual rate being charged to Jennifer is exactly one-half the nominal semiannual rate being charged to Brian. Calculate X.

8. Brian and Jennifer each take out a loan of X. Jennifer will repay her loan by making one payment of 850 at the end of year 6. Brian will repay his loan by making one payment of 1325 at the end of year 6. The nominal semiannual rate being charged to Jennifer is exactly one-half the nominal semiannual rate being charged to Brian. Calculate X.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Similar questions

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. BothTrish and Josh will receive payments for next four years. At a discount rate of 9.5 percent, what is thedifference in the present value of these two sets of payments?Select one:a. $151.06b. $141.80c. $162.50d. $159.08e. $154.30
Mrs Shiirley Abundo borrowed 20, 000.00 at 7.5% compounded quarterly at a certain cooperative. How much interest will be charge if she applies for a 2- year loan? What is the future value? a. 20,445.56 c. 39, 554.34 b. 28, 998.96 d. 30, 336. 24 What is the compound interest? a. 8,998.96 c. 5,996.56 b. 7,998.46 d. 4,338.55
Yagoda borrows $2,150.00 which she will repay with level weekly payments over 10 years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after 453 payments? a. $349.45. O b. $373.01. O c. $392.64. O d. $325.89. O e. $298.40.
You are loaned $300 at the end of years 1, 2, and 3. You pay this loan back with payments of X at the end of year 5, and $300 at the end of years 4, 6, and 7. Find X if the effective annual interest rate i = .07
Do i and ii.
1) Ms. Smith borrowed P125,000 at 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her effective rate of interest? A. 10.56% C. 21.12%B. 18.96% D. 22.00% 2) Kenneth's Arrows and Bows borrow P10,000 for one year at 12% interest. What is the effective rate of interest if the loan is discounted?A. < 12.5% C. > 13.5% but < 14.5%B. > 12.5% but < 13.5% D. > 14.5% 3) Koopman's Chickens, Inc. plans to borrow P300,000 from its bank for one year. The rate of interest is 10%, but a compensating balance of 15% is required. What is the effective rate of interest?A. < 11.4% C. > 11.6 % but < 11.8 %B. > 11.4% but < 11.6% D. > 11.8 %
I need an answer for number 8.
X, Y, and Z each borrow $10,000. They agree to repay their loans in full in one year. X borrows his money at 7 percent, compounded monthly. Y borrows his money at 7 percent, compounded annually. Z’s loan has 7 percent simple interest. Given this information, which one of the following statements is correct? Z will owe less money than either X or Y. Y will have to repay the same amount as Z, but less than X. X will owe less money than either Y or Z. X, Y and Z will owe the same amount one year from now. Y will owe the same amount as X, but less than Z.
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
Chelsea was supposed to pay Jacob $4,800, 6 months ago, and $1,500, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $3, 100 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.25% p.a. and the agreed focal date is 3 months from now.
Caroline borrowed $1,500.00 at 9.00% p.a. She wants to settle this loan with 2 equal payments, one in 5 months and another in 16 months. Determine the size of the payments using 'now' as the focal date.
Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments of $100.00 per month for a certain amount of time. If the interest rate on the loan is 0.66 percent per month, she makes her first $100.00 payment later today, and she makes her final monthly payment of $100.00 in 12 months, then what is X, the amount of the loan? A O An amount less than $1,153.00 or an anmount greater than $1,324.00 O An amount equal to or greater than $1,153.00 but less than $1,199.00 O An amount equal to or greater than $1,199.00 but less than $1,245.00 O An amount equal to or greater than $1,245.00 but less than $1,275.00 O An amount equal to or greater than $1,275.00 but less than $1,324.00