An engineering firm borrowed $500,000 at a 5%/year interest rate. They will repay the loan in 5 years. Calculate the total amount owed in 5 years using simple and compound interest. Show your work/formulas by typing in the textbox.
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
An engineering firm borrowed $500,000 at a 5%/year interest rate. They will repay the loan in 5 years. Calculate the total amount owed in 5 years using simple and compound interest. Show your work/formulas by typing in the textbox.
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- After completing a bachelors degree, you have $15,000.00 in student loans to pay back at an interest rate of 2.25% for 6 years. Follow the steps to show work used to calculate the monthly payment on this loan. Enter the values needed for the LEFT and RIGHT sides of the amortization formula. LOOK AT YOUR FORMULA SHEET. Be sure to use parentheses as shown in class and * to show multiplication: LHS: RHS: pymt. Hint Hint Now simplify the expressions from above and enter the final values for both sides below, keeping at least 6 decimal places: = pymt. Finish your calculation of the payment and enter your result, rounded to the nearest penny, in the table below. Then use the information to complete missing values in the table. SEE THE VIDEO BELOW IF YOU NEED HELP WITH THE TABLE (Round to the nearest cent) Month Monthly Payment Interest on Prior Balance Principle Outstanding Balance 1 2 3 Question Help: VideoFind the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.Suppose you secure a home improvement loan in the amount of $5,000 from a local bank. The loan officer gives you the following loan terms:• Contract amount = $5,000• Contract period = 24 months• Annual percentage rate = 12%• Monthly installment = $235 .37Shown is the cash flow diagram for this loan. Construct the loan payment schedule by showing the remaining balance, interest payment, and principal payment at the end of each period over the life of the loan.
- Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.A person took a loan of $250,000 and has to pay it back in monthly payments for 30 years starting end of the first month at an interest rate of 6 % compounded monthly. The balance after the 270th payment is; Click to open: To access the spreadsheet, click on the download icon next to the sheet title. A new tab will open next to the test tab and you can go back and forth between the sheet and test tabs. O $109,368 O $108.416 O $107,459 O $106,497Create an amortization table for a $60,000 loan. We will assume payments are made monthly over 6 years at an interest rate of 4%. a.) First use a formula cell in your spreadsheet to calculate the monthly payment amount. b.) Create an amortization table for the 72 months. Your columns of your amortization table should include payment number, payment amount, interest paid each month, principle paid that month, amount paid on principal total, and the amount of principal remaining.
- Please indicate what you entered into your calculator to solve these problems. 1. You graduated with $28,000 in school loans. You will make annual payments of $4,000 at the beginning of each year for the next 10 years. What annual rate of interest are you being charged on your school loans? 2. You bought equipment for $23,000 and agreed to make monthly payments at the end of each quarter for 5 years. Assuming you are being charged 9% interest compounded QUARTERLY, how much will your QUARTERLY payments be? 3. You currently have $750,000 in your building fund. If you start depositing an additional $20,000 per year into this account at the beginning of each year, how much will be in the account after 6 years assuming 5.5% interest compounded annually? 4. You want to start saving for a new car and have decided to put S$90 per month at the beginning of each month into an account which earns 6% compounded monthly. You would like to be able to buy a car for $25,000. (a) How many deposits will…A loan of $5,000 with interest at 7.75% compounded annually is amortized by equal payments at the end of each year for five years. 1. Show your financial calculator inputs for the payment calculation. 2. Create a full amortization schedule for the loan. A template is available in the Test folder (underneath the link to our test. You can fill in the Word file template and attach below,.Use the TVM solver on the calculator, fill in the information that you typed in the calculator.. What monthly payment is required to amortize a loan of $40,000 over 10 years if interest at the rate of 6% per year is charged on the unpaid balance and interest calculations are made at the end of each month? 2. Work Here (Keyboard only):
- Solve the following problems by showing your formula and computation: 1. what is the simple interest on $4,000 for 2 years of 6%? What is the amount? 2. find the interest and the amount for $800 for 8 months at 4% 3. Jason borrowed $2,500 on March 1 from a bank and promised to pay back the money in 90 days at 6% interest using the 360-day Banker's Method. What amount will Jason pay the bank when the loan is due? 4. find the time necessary to yield $30 on $450 at 8% simple interest. answer in months. 5. find the amount due at the end of 15 months whose present value is $2,000 at 5% simple discount. 6. at 6% simple discount, find the present value of $300 which is due at the end of 90 days using the 6% method. what is the discount on the $300?Suppose you are a relationship manager at an international bank. A customer who recently got admission at a prestigious Business School approached you for an education loan of Rs. 36,00,000. Your bank offers the education loan at 9.6 percent to be repaid in 10 years in EMIs. You are assigned the task of preparing the amortization schedule for the customer and answer the following. Prepare the amortization schedule for the first 5 EMIs. What will be interest paid for 93th EMI? What will be the loan balance after 93th EMI? What is the total interest paid for the loan?Suppose an engineer purchases a home and secures a loan of ₱2.5M from a commercial bank for 20 years at an annual interest rate of 9%. Find the monthly amortization of the loan. How much is the total amount paid over the life of the loan in Problem 1? How much is the total amount of interest paid over 20 years in Problem 1? I hope you can help me. Thank youu