Ali borrowed $21,500 at 5.00% p.a. from his parents to start a business. In 3 months he repaid $4,500 towards the loan, and in 10 months he repaid $4,200. How much would he have to repay his parents at the end of 15 months to clear the outstanding balance? Use the declining balance method to calculate the last payment.

Ali borrowed $21,500 at 5.00% p.a. from his parents to start a business. In 3 months he repaid $4,500 towards the loan, and in 10 months he repaid $4,200. How much would he have to repay his parents at the end of 15 months to clear the outstanding balance? Use the declining balance method to calculate the last payment.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Beth obtained a student loan of $75,000 to finish her last 2 years of medical school. She would make no payments until she finished, but the loan would accumulate interest at 2.4% compounded monthly. When she finished school, Beth was to begin monthly payments that would repay the loan in eleven years at 2.4% interest. (Round your final answers to two decimal places.) (a) Find the amount of the loan when Beth finished. (b) Find the monthly payments.
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11?LU 16-1(2) Gail Ross met Jim Ryan (Problem 3) at Lane Bank. After talking with Jim, Gail decided she would like to consider the same loan on exact interest. Can you recalculate the loan for Gail under this assumption? LU 16-1(2)
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.)
simon's cost for a new computer with accessories was $3120. he made a down payment of $550 in finance the balance on a 24 month fixed payment installment loan. The monthly payments are $111.73. Instead of making his 18th payment, Simon decides to pay the total remaining balance and terminate the loan. How much is interest will Simon save? Simon will save $___ in interest. round to nearest cent
In order to start a small business, Samy borrowed RM40, 000 from a bank. The loan is repaid by monthly installment for five years. The interest charged is 5% on the original balance. (a) Determine the monthly payment. (b) Immediately after paying for three years and six months, he decided to pay off the loan. Using the Rule of 78, calculate the amount he has to pay.
Sun Jung finances a sofa for $1,125 by taking out an installment loan for 60 months. The payments were $28.12 per month and the total finance charge was $562.20. After 24 months, Sun Jung decided to pay off the loan. After calculating the finance charge rebate, find her loan payoff.
Kim borrowed money from a bank to buy a fishing boat. He took out a personal, amortized loan for $18,500 , at an interest rate of 5.9%, with monthly payments for a term of 6 years Find Joe's monthly payment. (b) If Joe pays the monthly payment each month for the full term, find his total amount to repay the loan. (c) If Joe pays the monthly payment each month for the full term, find the total amount of interest he will pay. Please answer all subparts with explanation. I will really upvote. Thanks
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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.)
Interest Earned. On June 1, Mia deposited $5,600 in an MMDA that pays 3% interest. On October 31, Mia invested $1,200 in a three-month CD that pays 4%. At the end of the year, how much interest will Mia have earned, assuming she hasn't taken anything out of the money market deposit account? Assuming she hasn't taken anything out of the money market deposit account, the amount of interest Mia will have earned is (Round to the nearest cent.).
While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of $320 for the next 3 years and 6 months. She was charged an interest rate of 4% compounded semi-annually for the entire term. a. What was the purchase price of the car? b. What was the total amount of interest paid over the term? Since the birth of her daughter, 18 years ago, Jeremy has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.00% compounded monthly for the first 9 years and 3.60% compounded monthly for the next 9 years. a. Calculate the value of the fund today (the end of 18year term b. How much of this is interest?
Mrs. Pores invested ₱150,000 in a bank that pays an 13% interest converted monthly. If her account balance today amounts to ₱168,900, approximately how many months did she invest her money? Group of answer choices

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