A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly A. 100 B. 70 C. 142 D. 121

A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly A. 100 B. 70 C. 142 D. 121

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

See similar textbooks

Related questions

Q: A house is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: Price of house $1,00,000 Less: Down payment $30,000 Loan Amount $70,000…

Q: be repaid by a payment of $1200 in six mo: rest is 10% compounded monthly, when she

A: Given: Loan amount = $2000 Instalment Paid after 6 months = $1200 Final Instalment = $1000 Interest…

Q: 1. A construction equipment with no salvage is to be replaced at the end of 12years from now at a…

A: In the given question, the future value of annuity is 800,000. Annual Rate of Interest is 15%. But…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay the amount can be calculated with the help of NPER function of…

Q: John Perez receives P 90,000.00 credit for his old automobile when buying a new model costing P…

A: The question can be solved as follows:

Q: To repay a loan of $20,000, a series of nineteen level payments is to be made with the first payment…

A: Generally loans are paid by annual payments that carry the payment for loan and payment for interest…

Q: A twenty-year loan of $15,000 is being repaid with payments of X every other year beginning at the…

A: Loans are paid by equal payments that carry the payment of interest and loan.

Q: 0 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase.…

A: The discounting formula is one plus discount rate divided by a number of year's whole raise to the…

Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…

A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…

Q: A P150,000 loan is to be paid as follows: P 10,000/month _______ 1st to 10th month Final payment…

A: Loan = 150,00 Time Period = 12 months Interest Rate = 12%/12 = 1% per month Payment from 1st to 10th…

Q: An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money…

A: Future value of an annuity- is the value of a group of recurring payments at a certain date in the…

Q: A house costs $133,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: A house costs $144,000. It is to be paid off in exactly ten years, with monthly payments of…

A: The Annual Percentage Rate(APR) of the loan can be calculated using the RATE function in Excel.

Q: Prepare an amortization schedule for a four-year loan of $165,280. The interest rate is 4% per year,…

A: EMI or monthly or annual mortgage payments are the fixed amount paid by the borrower to the lender…

Q: A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every…

A: The time value of money (TVM) is a financial concept that recognizes the idea that a sum of money…

Q: An installment contract for the purchase of a car requires payments of $217.43 at the end of each…

A: Interest expenses The amount that the borrower pays for the funds borrowed is called the interest…

Q: To pay off a P100,000 loan , it is required that 20 semi -annual payments that is increased by…

A: A) P2,854 Explanation:

Q: 1. Mary made a loan of P58,000 to supply her new business. It is to be amortized by ten equal…

A: We need to use RATE function in excel to calculate interest rate. Formula is =RATE(NPER,-PMT,PV)

Q: A house costs $142,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Annual Percentage Rate(APR) is nothing but the rate of interest charged to borrower and it will be…

Q: An installment contract for the purchase of a car requires payments of $217.43 at the end of each…

A: The loan can be repaid by making periodic payments which can be monthly or annual etc. These…

Q: An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment.…

A: Cost of house = $100,000 Down payment = $20,000 Interest rate = 9% Time period = 20 years Payment…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of months required to pay off the amount can be calculated with the help of NPER function…

Q: P1M if paid in cash. What is the amount of the building today for 12y the rate of 4.83% compounded…

A: Continuously compounded interest is interest calculated on both the initial principle and all…

Q: A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A house costs $147,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Given information: Cost of house is $147,000 Monthly payment is $1,783.52 Number of years is 10

Q: An instalment contract for the purchase of a car requires payments of $280.49 at the end of each…

A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…

Q: A loan is to be repaid by $1250 in 1.5 years and $1750 in three years and three months . The…

A: Given information: Loan to be repaid is $1,250, Number of years is 1.5 Outstanding loan amount is…

Q: A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: A person buys a piece of lot for P 112,923.25 down payment and 11 deferred semi-annual payments of P…

A: In this we have to calculate present value FACTOR and then find out present value of all payments.

Q: A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Following details are given in the question: Cost of House (Present Value) = $148000 Monthly payment…

Q: A sala set costs P6,800 cash. A buyer pays P2,500 down-payment and the balance will be paid by equal…

A: To calculate the amount of loan , subtract the down payment from the cost. Monthly payment is…

Q: A construction company plans to accelerate the payments on an equipment loan as production…

A: Given, Initial payment (A1) = $10,000 per year Loan interest rate (i)= 12% Time period (t) = 10…

Q: A loan is to be repaid by $1500 in one year and $2250 in four years. The borrower has asked to repay…

A: Outstanding loan amount is $1500 (due in 1 year) and $2250 (due in 4 years). Present value and…

Q: Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 6 percent…

A: The amortization schedule can be prepared as follows:

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

100%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A house is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly a. 100 b. 132 c. 70 d. 121
A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly A) 132 B 100 70 D) 121
7. With solution please
A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 9% compounded monthly
A house costs $144,000. It is to be paid off in exactly ten years, with monthly payments of $1,720.60. What is the APR of this loan? O A. 7.65% O B. 5.65% O C. 8.65% O D. 6.65%
A house costs $133,000. It is to be paid off in exactly ten years, with monthly payments of $1,641.90. What is the APR of this loan? OA. 7.4% B. 6.4% O C. 8.4% O D. 9.4%
. A sala set costs P6,800 cash. A buyer pays P2,500 down-payment and the balance will be paid by equal monthly installment payments for 8 months with interest rate of 6% compounded monthly. Find: a. the monthly payments: b. construct an amortization schedule
A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of $2,000 every month thereafter, how many months will it take for the buyer to completely pay for the building? Interest is charged at a rate of 8% compounded monthly.
A building is to be paid indefinitely at the rate of 3.5%. The building's price lis P1M if paid in cash. What is the amount of the building today for 12years at the rate of 4.83% compounded continuously?
G12.
A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021
A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)