A bank is willing to lend $20,000 for a home improvement loan to be repaid monthly over 5 years based on 10% interest. What is the amount of each monthly payment required to repay the loan?

Q: You owe $19,000 on student loans at an interest rate of 4.6% compounded monthly. You want to pay off…

A: The amount of loan "PV" is $19,000 The interest rate is 4.6% Compounded monthly The time period is 6…

Q: If you repaid a loan of $3000 in 4 years with monthly installments of $86, what was the finance…

A: Computation:

Q: You receive a 10-year subsidized student loan of $22,000 at an annual interest rate of 4.3%. What…

A: Using excel PMT function to calculate monthly payment.

Q: You go to the loan fund of the company where you work and find that they have an emergency fund…

A: Given, that the payments in month 3,6,9,12 is double than the normal payments in other months.…

Q: Assume that you can get a loan from NCB for $264,500 for three years to buy an item of your…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by…

A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…

A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…

Q: A person borrows 10,000 at an interest rate of 8% per year and wishes to repay the loan over a…

A: As per the given information: The amount borrowed - 10,000 Interest rate - 8% per year Loan period -…

Q: You borrow $21421 to buy a car. You will have to repay this loan by making equal monthly payments…

A: Formula for calculating EMI: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] P = Loan amount  r=…

Q: You owe $31,000 on student loans at an interest rate of 5.85% compounded monthly. You want to pay…

A: Information provided: Loan amount = $31000 Annual rate "r"= 5.85% Number of years "n" = 7 Number of…

Q: You borrow $8000 to help pay your college expenses. You agree to repay the loan at the end of 6…

A: Present Value (PV) of loan = $8,000Annual interest rate = 9% or 0.09Quarterly interest rate (r) =…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: Laurier Inc. has borrowed $ 65000 from its bank. The annual interest rate on the loan is 4%…

A: Solution Given Amount borrowed $65000 Interest rate 4% Compounding Annually…

Q: You receive a 10-year subsidized student loan of $29,000 at an annual interest rate of 4.8%. What…

A: Loan payments are given by, L = E(1-(1+r)^-n)/r Where, E = payment = ?? r = interest rate = 4.8%/12…

Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12

Q: You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…

A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1

Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…

A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…

Q: Suppose you have the following three student loans: $11,000 with an APR of 8.5% for 12 years,…

A: Here,First LoanSecond LoanThird LoanLoan Amount $  11,000.00 $  17,000.00 $…

Q: A worker is considering a loan of $97000 over 20 years at an interest rate of 7.9% p.a. with monthly…

A: The difficulty of distributing limited resources among numerous initiatives or investments is one…

Q: An amount of $15,000 is borrowed from a bank to finance a purchase of a new car for a period of 4…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Q: A student loan with a simple annual interest rate of 2.5% must be paid back in ten years. A student…

A: Given data, Interest rate(r)=2.5% or 0.025 per annum Total interest(I)=P2,000 Time(t)=10 years

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: The objective of the question is to calculate the annual payment for a loan of $1,000,000 at an…

Q: Find the monthly house payments necessary to amortize each  loan. Then calculate the total payments…

A: Under EMI Payment, Both Principal & Interest amount are paying back to the lender over a…

Q: A local finance company will loan $15,000 to a homeowner. It is to be repaid in 36 monthly payments…

A: Loan Amount (Present Value) = 15,000 Future Value = 0 (Loan repaid in monthly installments with no…

Q: If you lend $3000 to a friend for 15 months at 10% annual simple interest, find the future value of…

A: Future Value of Loan = Amount of Loan + interest on Loan

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) Finance $550,000 for…

A: Present value of annuity. PV = A × Where,PV = Amount of loanA = periodic payments r = interest rate…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: The terms of a loan call for monthly payments for 6 years at 9.6 percent interest. If you borrow…

A: The present Value of Ordinary Annuity refers to the concept which dictates today's value of a sum of…

Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) Finance $650,000…

A: A loan is a sum of money that is taken out from a lender and usually paid back over time through…

Q: A personal loan for $20,000 has an interest rate of 12% over 5 years with monthly payments. What is…

A: Equated Monthly Instalment(EMI) means a part of the equally divided monthly amount paid for the…

Q: you borrowed $400 from a friend and promised to repay the loan by making three annual payments at…

A: Loan amount is equal to the present value of payment done based on time value of money..

Q: Assume you take a loan of $10,000 with interest of 5%/year compounded yearly. You intend to pay it…

A: First, determine the monthly payment of the loan using the Excel PMT function where the ‘RATE’ is…

Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…

A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…

Q: You receive a 10-year subsidized student loan of $18,000 at an annual interest rate of 5%. What are…

A: Given: Loan = $18,000 Interest rate = 5% Years = 10

Q: A finance company uses the discount method of calculating interest. The loan principal is $5,000,…

A: Future Value = Present Value * (1+r)^n

Q: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment