A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows ​$25,00

Q: Rich buys a car for $34,000 and has two options for financing. The dealership offers either…

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

Q: Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His…

A: Loan year=30 years Interest=6% Computer cost =$ 1,500 Here,we need to find amount of interest paid…

Q: ds to borrow $5000 to pay for NHL season tickets for her family. She can borrow from the credit…

A: The annual percentage rate (APR) is the total cost of a loan to a borrower, including fees which is…

Q: 1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her…

A: IN finance the time value of money is considered so there is present value and future value concept…

Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is…

A: The present value of money is the discounted value of future cash flows. The future value is the…

Q: Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers…

A: The maximum amount that the bank will lend will be the present value of the monthly payments that…

Q: Josh borrowed $500 for 1 year and paid $50 in interest. The bank charged a $5 service charge. What…

A: Finance charge:Finance charge means the total amount of charges of loan and interest paid throughout…

Q: Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of…

A: Here, To Find: Maximum monthly mortgage payment =?

Q: Bernie purchased a riding lawn mower for $1,320. The store offered him a 3-year add-on loan at an…

A: Computation:

Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: Theo just financed a new car through his credit union.  His car loan requires payments of $420 a…

A: A car loan is a type of personal loan specifically designed for purchasing a vehicle. It is a…

Q: A friend has $1,200 that he has saved from his part-time job. He will need his money, plus any…

A: The interest earned on the savings account is determined by multiplying the amount invested with the…

Q: Stephen has just purchased a home for $162,000. A mortgage company has approved his loan application…

A: Buying a house is a once in a life step. Most of the people buying a house do not have enough cash…

Q: You are on your way to the local automobile outlet to buy a car. The price of the car is $20,000.…

A: To prepare the amortization table, we first need to calculate the annual payment, which can be…

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume…

A: Amount required (FV) = $90,000 Semiannual interest rate (r) = 0.03 (i.e. 0.06 / 2) Semiannual period…

Q: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

Q: A few years ago a couple purchased an office space by financing RA for n years, paying installment…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: Jasper purchased a car for 47,500. He paid a 20% down payment and financed the rest at 2.88 % for 6…

A: Loan is a value which is borrowed from the external sources like banks for a particular period and…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: A student has a job that leaves her with $300 per month in disposable income. She decides that she…

A: Present value factor or present value interest factor is widely utilized to forecast the present or…

Q: Your are in need of cash and turn to your cousin, who offered to lend you some money. You decide to…

A: The rate of interest charged by the cousin is calculated using the following equationWhere, FV is…

Q: Smith has arranged for a mortgage loan of $200,000. The annual rate on the loan is 12%. The bank…

A: Present value of annuity is basically the present value of all the cash that occur in future.

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: Data given: Monthly payment for 15 year mortgage= $718.77 Monthly payment for 30 year mortgage= $…

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: An annuity is a contract where a fixed amount is paid periodically. It is used to help investors…

Q: 1. Chris has saved $6500 towards buying a car which is valued at $23,500. They plan to borrow the…

A: Interest: It is the amount that is paid by the borrower to the lender for taking a loan. It is paid…

Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…

A: Present value refers to the discounted value of future cash flows.future value is the compounded…

Q: William wants to borrow $42,000.00 today to purchase a car, which bank's lending option will allow…

A: Present Value of annuity formula is used to check if the loan present value of periodic payments.…

Q: Jorge is buying a new car for $24,750. Compare the two loan offers by finding the monthly payments…

A: Purchase Price of Car = 24750 Two loan options evaluated below

Q: Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and…

A: Calculation of monthly payment: Answer: Monthly payment is $995.40

Q: Tom needs a car to commute to work and has found a suitable Honda Civic from a dealer for $8000. He…

A: Total is the amount of down payment and amount total paid in monthly payments that include payment…

Q: rianne borrowed $6200 to buy a vehicle to drive to school. She plans to study for 3 years, and then…

A: Loans are paid by fixed equal monthly payments that carry the interest and loan amount.

Q: A man plans to take a vacation in 4 years. He wants to buy a certificate of deposit for $1200 that…

A: We need to use compound interest formula to solve this problem A=P(1+r)n Where A =Amount/Final…

Q: Tom borrowed $300,000 for his son Remy's law school tuition at the University of Missisippi. Tom…

A: The interest is charged by the lender from the borrower in exchange for the loan being extended. The…

Q: Determine the amount of money the man must repay after 2 years.

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: David is planning to buy a new car. Since David has not save any money, he plans to take out a loan…

A: As per the given information: Amount to be financed = $43,950 Time Period = 5 Years  Annual…

Q: Susan would like to buy a car. She went to the bank and got a loan for $40,000 at the annual…

A: Loans are paid off through amounts that are fixed and are paid on a periodic basis i.e. monthly or…