What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment
Q: Interest Rate Frequency of Conversion Singie Payment D83.00 due today and 144.00 due in 5 years 8%…
A: The future value of payment includes the interest also while present value includes the payment…
Q: How long would you have to wait for a deposit of $1,625 to earn $34 in interest? Assume that the…
A: Interest = Principal * Rate * Time
Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…
A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…
Q: How much must you deposit each year into your retirement account starting now and continuing through…
A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…
Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…
A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…
Q: You are to make monthly deposits of $625 into a retirement account that pays an APR of 11.4 percent…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: How long is the period of deferral (d) if the first quarterly payment of a deferred ordinary annuity…
A: Deferral Annuity is one of the type of annuity in which borrower has the option to start the annuity…
Q: How long (in years) will it take to quadruple it earns 0.03 compounded semiannually?
A: compound interest formula, which is A = P(1 + r/n)^(nt).
Q: How much must you deposit in an account today so that you have a balance of $18,355 at the end of 11…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…
Q: Find the equated date at which the original payments are equivalent to the single payment. State…
A: The objective of the question is to find the time at which the original payments are equivalent to…
Q: How long (in years) will it take to quadruple it earns 0.08 compounded semiannually?
A: Interest rate (r) = 0.08 Number of compounding per year (m) = 2 Future value factor required (FVF) =…
Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…
A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58
Q: You want to withdraw $ 54,777 from your account at the end of one year and $ 10,521 at the end of…
A: As per the given information:Withdrawals at the end of the one year = $54,777Withdrawals at the end…
Q: What is the double entry to record my payments to a rotating savings arrangement weekly? What is…
A: Double entry is one of the method of bookkeeping which states that each monetary transaction has…
Q: Quarterly payments of P9,567.32 for 4 years that will start 1 year from now. Find its Period of…
A: An annuity is a stream of cash flows occurring at equal time intervals for a particular duration.…
Q: What is the value of a perpetuity that pays $100 every 4 months forever? The discount rate quoted on…
A: Given information: Cash payment of $100 APR is 5.70% Number of periods is for every 4 months
Q: Suppose that you deposited $5,999 at the end of each year in a Roth IRA account earning an annual…
A: A Roth IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that…
Q: How much should a family deposit at the end of every 6 months in order to have $6000 at the end of 7…
A: The deposits are made at the end of each period. Therefore it is an ordinary annuity. The future…
Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…
A: The importance of future value: Future value is a crucial estimate since it informs investors and…
Q: $2.56 interest is due. How much do you owe in total if you pay the bill 3 months past the due date?…
A: Computation of amount to be owe is as follows:A=P(1+r)t where, r=2.56%12or0.0256/12t=3 months
Q: The payments are made monthly and its compounding periods is quarterly." What kind of annuity is…
A: payments are made monthly and its compounding periods is quarterly Payment period = monthly…
Q: Which table would you use to determine how much must be deposited now in order to provide for 5…
A: Since amounts are to be withdrawn beginning of every year starting one year hence - thus this is an…
Q: If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the…
A: The effective rate of interest is the return on savings or interest on investment that takes into…
Q: How much should a family deposit at the end of every 6 months in order to have $2000 at the end of 3…
A:
Q: You are to make monthly deposits of $675 into a retirement account that pays an APR of 10.3 percent…
A: A series of fixed payments that are paid or received at an equal time interval is term as the…
Q: You wish to save $52000 in an account which pays 3% compounded semiannually by making quarterly…
A: An annuity is a series of payments or deposits for a certain period of time at a compounded rate.…
Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…
A: Formula to calculate Future value of Ordinary Annuity is: F = P * ([1 + i]^N - 1 )/i Where in:…
Q: Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest.…
A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…
Q: How long is the deferral period (d) if the first quarterly payment of a deferred annuity due will be…
A: Annuity Due refers to the stream of payments made at the beginning of each equal interval. Periods…
Q: You're prepared to make monthly payments of $200, beginning at the end of this month, into an…
A: Monthly payment (M) = $200 r = 10% per annum = 0.833% per month Let n = Number of payments
Step by step
Solved in 3 steps with 4 images
- Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
- A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment > 2 D TRENE VAR TVUNG S 2006- E - EYou take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each month, you make exactly the required payment. Consider the following table of data from the amortization schedule: Month N N + 1 Beginning Balance Payment $1,322.14 Interest Principal Ending Balance $217,120.83 $216,404.82 Based on this information, what is the nominal annual interest rate (with monthly compounding) for this mortgage? Enter your answer in X.XX format (2 decimal places). For example, if your answer is 6.25%, enter "6.25".Suppose a homeowner is evaluating two mortgages, both of which are arrangements for repaying a loan of $200,000. Mortgage C requires monthly payments at the end of each month for 15 years at a stated annual rate of 6%. Mortgage D has monthly payments, paid at the beginning of each month for 18 years, at a stated annual rate of 5.5%. Mortgage C has a lower monthly payment than Mortgage D. False True
- You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each month, you make exactly the required payment. Consider the following table of data from the amortization schedule: Month N N + 1 O 3.15 %- 3.05% 3.35% O 3.45% Beginning Balance 3.25% Payment $1,289.21 Based on this information, what is the nominal annual interest rate (with monthly compounding) for this mortgage? Interest Principal Ending Balance $215.249.20 $214.525.02A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $800. What will be the loan balance at the end of year 1?Consider a home mortgage of $225,000 at a fixed APR of 4.5% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
- A borrower has taken out a 30-year mortgage for $104,000 at an annual rate of 12%. a. Use the table to find the monthly payment for this mortgage. b. Construct the first three lines of an amortization schedule for this mortgage. c. Assume that the borrower has decided to pay an extra $200 per month to pay off the mortga more quickly. Find the first three lines of your payment schedule under this assumption. Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payments for this mortgage are $ (Type an integer or a decimal.) Enter your answer in the answer box and then click Check Answer. 6 parts remainino Olear All Cherk Answe javascript:doExercise(3): Copyright © 2020 Pearson Education Inc. All rights reserved. | 99 a 立A mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term (Years): 20 Please determine the following: What is the Monthly Payment? In preparing an Income Statement, what is the Interest Expense for years 1 – 5? What is the Principal Balance at the end of year 6? What is the value of the loan at the expiration? If rates remain constant (flat), what would the benefit be to refinance this loan after year 10? do all the questions 1-5 and show the formulas in excel and show how you got itConsider a home mortgage of $225,000 at a fixed APR of 6% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total amount paid over the term of the loan is $ (Round to the nearest cent as needed.) c. Of the total amount paid,% is paid toward the principal, and % is paid for interest. (Round to one decimal place as needed.)