A bank made a farmer loan of 1000 at 14% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with the simple interest for the same period

Q: Find the interest paid on a loan of $2,700 for one year at a simple interest rate of 11% per year.…

A: Simple interest = Principle × rate × time

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

A: We can calculate the effective annual interest rate by applying the required formula taking the loan…

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: A borrower had a loan of $7800 at 5.6% compounded semiannually, with 20 semiannual payments. Suppose…

A: We have; The loan amount is $7800 The interest rate is 5.6% compounded semiannually Total m=number…

Q: Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00.…

A: We have a loan account where borrowing and payment is a continuous process as per requirement. We…

Q: You plan to borrow $10,000 from the bank. For a four-year loan, the bank requires annual end-of-year…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: The following loan is a simple interest amortized loan with monthly payments. $5000, 7 1/2%, 4…

A: Answer: Principal balance = $ 5000 rate = 7.5% time = 4 years

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: What effective annual interest rate are yo being charged

A: Information Provided: Face amount = $2000 Interest amount = 14% Compensating balance = 20%

Q: and has a loan of $8,500 compounded quarterly for four years at 10%. What is the eff ere to view…

A: Effective interest rate is interest rate considering effect of compounding.

Q: Create a loan repayment schedule for a loan of $30295 and payments of $8482 made annually. Assume a…

A: Given, Loan amount: $30,295 Annual payment: $8,482 Interest rate: 6.13% per year (compounded…

Q: Suppose you take out an auto loan for $25,500 over a period of six years at an APR of 7.5%.…

A: The annual percentage rate refers to the yearly rate of interest paid for a loan or received from an…

Q: Find the monthly house payments nessary to amortize the following loan. Find total payments and…

A: Loans can be secured and unsecured. The loan is the amount borrower takes from the bank or financial…

Q: Suppose you purchase a home and obtain a 30-year fixed-rate loan of $145,000 at an annual interest…

A: Time Period = 30 years*12 = 360 months Loan Amount = 145,000 Interest% = 7.5%/12 = 0.625%

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: A bank made a farmer a loan of $1,00 loan. Compare the compound interes Future value= $0 (Round to…

A: Value or worth of money changes with passage of time. This is due to a theoretical concept in…

Q: Ross Land has a loan of $8,500 compounded quarterly for four years at 4%. What is the effective…

A: Effective rate of Interest-The effective rate means the actual rate of interest which is accrued on…

Q: Suppose you take on a loan that is subject to an annual interest rate of 12%, with the interest rate…

A: present value=future value1+rate of interestfrequency of compoundingyear×frequency

Q: Use the Loan Payoff Table to determine both the finance charge and the payment required to amortize…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A loan of $8000 made at 6% compounded monthly amortized over five years by making equal monthly…

A: Loans are paid by equal and fixed payments that carry the payment for interest and payment for loan…

Q: Prepare the first row of a loan amortization schedule based on the following information. The loan…

A: Here, Loan Amount is $17,900 Interest Rate is 9% Time Period is 22 years.

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.