A teacher takes out a loan to buy a housethat is worth $250 000. The loan earnsinterest at an annual rate of 3% per year,compounded annually. The teacher wishesto pay off the loan in monthly payments for30 years.(a) Calculate the monthly paymentsrequired for the teacher to fully pay off theloan. Give your answer rounded to twodecimal places(b) (i) How much has the teacher paid intotal for the house at the end of the 30years? Give your answer rounded to twodecimal places.

Time value of money :— According to this concept, value of present money is greater than the value…

Answered: A teacher takes out a loan to buy a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $11,500 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A contractor decided to borrow $7000 from a bank in order to buy an equipment for his company. The bank allows him pay back his loan in five years at a monthly interest rate of 2%. the farmer can pay $71 per month but can increase his monthly payment by a certain value in arithmetic way (G value). What should be the G value so that he finished the loan by the end of five years? O $ 243326.21 O $ 4531.98 O $ 3.00 O $ 5.50 O $ 9468.02
In order to accumulate enough money for a down payment on a house, a couple deposits $273 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 3 years? What is the amount in the account after 3 years? (Round to the nearest cent as needed.)
4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 7% effective annual interest. How much is in the second account after 35 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year Amount in 1st account Amount deposited into 2nd account 0 1 2 3 : : 34 35
A student buys a car from a dealer for $43,000 with no down payment. He pays for the car in 48 equal monthly payments with interest at 5% per annum, compounded monthly. What is his monthly loan payment?
Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
A couple who borrow $100,000 for 30 years at 8.4%, compounded monthly, must make monthly payments of $761.84. (Round your answers to the nearest cent.) (a) Find their unpaid balance after 1 year. (b) During that first year, how much interest do they pay?
Subject: accounting
Tim Houston purchased a wall unit for $2,300. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
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