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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1. A house costs P500,400 cash. A purchaser will pay P100,000 cash, P50,000 at the end of 2 years and a sequence of 6 equal annual payments starting with one at the end of 4 years to discharge all his liabilities at 7% compounded annually. Find the annual payment which may be made for 6 years. 2.Mr. Tolentino wants to deposit a lump sum on the day his son is born into an account bearing an interest of 5% compounded annually in order to withdraw P35,000 each on his son's 18th, 19th, 20th and 21st birthdays How much is the lump sum?
5. Jenna received a 15 year loan of $375,000 to purchase a house. The interest rate on the loan was 5.10% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 3? c. By how much will the amortization period shorten if Jenna makes an extra payment of $30,000 at the end of year 3? Answer in years and in months.
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 14 years before new obligations make it impossible to continue. How much money has accrued in the account at the end of the 14 years? (Round your answer to the nearest cent.) $ If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 29 years after the plan began? (Round your answer to the nearest cent.) $
A chiropractic student receives a 10-year PLUS Loan for $50,000 to complete the last 2 years of the program. If the interest rate of the loan is 5.48% and the student begins repaying the loan 2 years after graduation, what will the student's monthly payments be (in dollars)? (Assume the loan has a deferred payment plan. Round your answer to the nearest cent.)
Jack and Jill borrow $21,000 at 6.4% amoritzed over 7 years to drill a well and renovate their kitchen and bathrooms. Assuming that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 2 years? (Round to nearest penny and enter, for example, as 123456.78) Answer: Check
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
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 13 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 28 years after the plan began? (Round your answer to the nearest cent.)
1. Ginny took out a 3-year loan of $5800 for her son's wedding at an annual interest rate of 4.1% compounded monthly. a) What is Ginny's monthly payment on this loan? $. N = 1% = PV = PMT= 2. b) After making payments for 14 months, Ginny decided to repay the loan in full. Use this information and the monthly payment, found above, to calculate her payoff amount (PV) on the loan. FV = P/Y = C/Y = PMT: END BEGIN How many payments does Ginny have left (Win the TVM Solver below)? The payoff amount (PV) will be $ N = 1% = PV = PMT= FV = P/Y= C/Y = PMT: END BEGIN A career counselor decides to make monthly payments of $170 on credit card debt of $6845.21 and discontinue using the credit card. Assuming the annual interest rate is 22.3%, how many months will it take her to repay the debt? Round UP to the nearest month. "Hint: Make PMT a negative
To help purchase her new truck, Rita is taking out a $19,000 amortized loan for 6 years at 6.5% annual interest. Her monthly payment for this loan is $319.39. 1 Fill in all the blanks in the amortization schedule for the loan. Assume that each month is of a year. Round your answers to the nearest cent. 12 Payment number 1 2 20 21 Interest payment $1 $ $79.52 $0 Principal payment $0 $0 E $239.87 $0 New loan balance $0 $18,565.88 $14,440.35 $0 X 3

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