A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due? 10. A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews theloan for the amount due plus 2000 more for 2 years at 8%. What is the lumpsum due?a. 3,260.34b. 3,280.34c. 3,270.34d. 3,250.34

Borrow Amount = 2000 for 6 years at 8% Loan Renews with additional amount of 2000 for 2 more years…

Answered: A firm borrows 2,000 for 6 years at 8%.…

A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 7 years of savings were made in a deposit account that pays 22% compound interest annually. The…

A: Savings are done by individuals in order to earn a benefit in the form of interest rate. The scheme…

Q: If Charlie invests $50,000 in a cheese company today and is offered a 7% interest rate. How much…

A: The investment function shows the direct relationship between interest rate and investment. It means…

Q: How much money would you need to deposit today at 8% annual interest compounded monthly to have…

A: Given Rate of interest = 8% per year compounded monthly. Future value of money =$20000 Time = 5…

Q: With an interest rate of 7%, how much money can be lent now if $15,000 will be repaid at the end of…

A: Interest rate (r) = 7% or 0.07 Accumulated amount (A) = $15000 Time period (n) = 5

Q: As part of your retirement planning, you purchase an annuity that pays 4 % annual interest…

A: Annuity- A regular payment may be a contract between you associate degreed a nondepository financial…

Q: Find the present value at 10% interest of the series of payments below: End of year 1 2 3 Net Cash…

A: The present value is the current value of the future stream of income. The present value is affected…

Q: 3. Lesly Pacas borrows 300,000 pesos for 90 days at 12% per year to remodel her hair salon. She…

A: Given: Amount: 300000 pesos Period=90 days Interest rate at present=12% Interest rate a decade ago…

Q: . P5000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of…

A: Simple interest: It is a quick and easy method for calculating interest on a loan.

Q: If $700 is invested at 11% simple interest, calculate its value after 8 years.

A: Following are the given values: Invested amount = $700 Interest rate = 11% Time = 8 years

Q: Jackie takes out a loan for $38,000 at an interest rate of 6% for a period of 5 years. Assuming she…

A: A loan is a sum of money that is borrowed from a lender with the expectation of being paid back,…

Q: At 2% interest rate, how much should you invest today to be able to withdraw 2,958 annually for 5…

A: Given that, Future value ( Fv)= 2958 Interest rate (r)= 2% or 0.02 The total number of years (n) =…

Q: Emma borrowed $3,000 from a lending company for 3 years at 12%. At the end of 3 years, it renews the…

A: borrow at period 0 Amount = 3,000 n = 3 years r = 12% Renews after 3 years Amount = 2,000 n = 2…

Q: To making a robotic hardware for computer integrated manufacturing systems (CIM), Digital Devices…

A: Compound interest is the rate of interest that is calculated on the principal amount by taking into…

Q: Capitalized cost: Select one: O a. is the future sum needed to provide a perpetual series of cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Required information The Premier Car Title Loan Company makes emergency loans of up to $500 for one…

A: Nominal interest rate is the interest rate which is calculated without taking into account the…

Q: Mr. Jones borrowed P 200,000 in a bank and promise to pay at end of each year for 10 years,…

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: When a loan is taken, and has to paid in equal payments over a period of time, the amount of loan is…

Q: i will 10 upvotes urgent Picabo borrows $1,000. To repay the amount she makes 12 equal monthly…

A: This can be described as a rate of interest that stated interest rate on a loan or investment…

Q: You borrow $120,000 today to purchase a new truck. You sign a loan agreement for 4.8% annual…

Q: The coupon bond pays a coupon of 5% per year, paid semi-annually. It has 3 years to maturity. If the…

A: Yield to Maturity: Yield to maturity (YTM) is the annualized rate of return that an investor can…

Q: -An individual deposits $1,500 in a savings account that pays 3% interest annually. How much will…

A: Given information, Principal amount (P): $1,500 Interest rate (r): 3% annually Time period (t): 5…

Q: Lee wills loaned Audrey $17300 to open her shop after 5 years Audrey will pay back Lee with 16%…

A: The formula for compound interest will be: A=P1+R4004t Where A is the amount received after 4 years…

Q: 4. Using Benefit-cost ratio, find out the best alternative for i=10% and n=30 years. Capital…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the one…

Q: Edward takes out today a loan of $150,000.00 from a local Bank at 8% Compound Interest for 7 years.…

A: Here we calculate the amount Edward pay back at the end of year 7th by using the given information ,…

Q: f you loan your friend $1500 today and she gives you $2000 back in four years what is your annual…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A bond with a par value of 1000.00 and with a bond rate of 9% payable annually is to be redeemed at…

A: A product's or service's selling price is the seller's final price, or how much the buyer pays for…

Q: At a certain interest rate compounded quarterly, 2500 will amount to 10500 in 7 years. What is the…

A: The formula to calculate the amount is given by: A = P1+r/41004nwe divide the rate of interest by 4…

Q: If you need to have $10000 in savings at the end of 5 years and your savings ?account yields 5%…

A: You need to have $10000 in savings at the end of 5 years and your savings account yields 5% annual…

Q: The sum of $1000 is deposited in a bank and left there to earn interest rate for 10 years. if the…

A: Amount deposited in bank (PV) = $1000 Interest rate earn on depsoted money (r ) = 10% Total time…

Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which first year's…

A: GIVEN First year payment (AL) = 500 Greadient (G) = 1000 Annual Rate of interest = 8%. (i)…

Q: What will be the balance at the end of 5 years for $30,500 now at 10% annual interest, if compound…

A: Future value is the value of current cashflow at future date compounded at specified rate. formula:…

Q: what interest rate, componded continously, is needed for a principalof 4000 to increaseto 13000 in…

A: Given: Principal (P)=4000 Future value (A)=13000 Time (t)=10 years To find: Interest rate (r)

Q: you borrow $4000 and you have to return it after 3 years, in case of compound interest rate of 6…

Q: An engineer deposits $3,000 into a saving account at the end of the first year. He w increase the…

A: Present value is the value of some amount of money at the current time.

Q: If you deposit $10000 into a fund paying 6% interest. how much will be the amount after 1 years.

A: Deposit amount = $10000 Interest rate = 6% Time = 1 year

Question

A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus 2000 more for 2 years at 8%. What is the lump sum due?

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

Given

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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, economics and related others by exploring similar questions and additional content below.

Similar questions

If the effective interest rate is 20% per annum, what is the Nominal Rate if it is? A.Compounded Monthly B.Compounded Quarterly C. Compounded Semi-Annually D.Compounded Annually
6. Find the FV of $1000invested to earn 10% annually 5 years from now. (Assume this is a single payment not an annuity).
A trader buys a $1600, 12% quarterly bond for $1800, the bond matures in 3 years and pays interest compounded quarterly, what is the rate of return on the bond compounded quarterly?
9. In March 2010 Zhamila and Sapar deposited some amount on a joint account for which 12% interest is compounded monthly. In March 2012 Zhamila received 15000 soms from the account, after this in September 2012 Sapar withdrew from the account all remaining money - 25000 soms. How much money was deposited initially?
Lita made a loan of 1500 pesos at 99 simple interest for 5 years. At the end of this period, without the interest being paid the loan was extended for 3 years, but the new interest rate was made 20% compounded quarterly. How much should the borrower pay at the end of 8 years?
If you borrow $14000 now at 10% interest for 7 years, what is the total accumulated compound interest owed at the end of year 7?
Barney deposits $3000 in goliath national bank for 3 year which earn him an interest of 8%. What is the amount he gets after 1 year, 2 years and 3 years?
Jana invested a hundred thousand pesos in an account now. After eight years, she withdraws the principal. The remaining amount is then left for another eight years. If the interest is 5% semi-annually, what will be the withdrawable amount at the end of the sixteenth year?
You want to borrow $20,257. You must repay the loan in 7 years in equal monthly payments and a single $4,463 payment at the end of 7 years. Interest rate is 13% nominal per year. What is the amount of each payment? Please answer correct calculation asap plz Don't answer by pen paper plz
Please answer it without Excel , And also don't use AI. Try handwritten solution or typed
Present value of an annuity due. Find the present value of an annuity due of 2000 per annum for 14 years interest at 9% p.a.