Albert takes a loan out to buy a second-hand car.The loan is for £1,500. The interest rate on the loan is 4% compound interest per month.If Albert makes no payments on the loan, how much will he owe after six months? Giveyour answer in pounds to the nearest penny.

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

Answered: Albert takes a loan out 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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Bob wants to deposit $5000 into a bank account at the beginning of the next month and $200 per month into that same account at the end of that month and each subsequent month for the next 5 years. If the bank pays interest at the rate of 3% per year compounded monthly, how much will Bod have in his account at the end of 5 years? Assume that he makes no withdrawals during the 5 year period.
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Jessica charges $8500 to a credit card with a 15.54% interest rate. (a) If Jessica makes a payment of $185.56 each month, how many payments will it take to retire the balance? (b) If Jessica doubles the payment to $371.12, how many payments will it take to retire the balance? (c) If Jessica pays $371.12 each month instead of $185.56, how much will she save in interest charges? (a) It will take payments to pay off the debt. (Round up to the nearest integer as needed.)
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Albert takes a loan out to buy a second-hand car. The loan is for £1,500. The interest rate on the loan is 4% compound interest per month. If Albert makes no payments on the loan, how much will he owe after six months? Give your answer in pounds to the nearest penny.