Bozo borrowed $15,000 from Ernie due in 5 years at 6% compounded monthly. Immediately after the debt is  contracted, Ernie sells the note to Max for an amount based on 5% compounded monthly. How much does Ernie  receive?

Q: Frank is making quarterly contributions of $240 to his savings account which pays interest 7.5%,…

A: The time value of money is used to calculate the present values and future values of any stream of…

Q: Fred owes $5,000 due in three years and $8,000 due in 11 years. Unfortunately, Fred is unable to…

A: Simple interest is simply the interest on the principal amount for the years of principal being…

Q: George borrows $1200 at 15.5% interest from June 7 through July 21. How much (simple) interest does…

A: Simple Interest = P * R * TP = Principal = $1,200R = Rate = 15.5%T = Time = (June 7 to July 21) = 44…

Q: John borrows 10,000 from Tony and agrees to repay the loan with 10 equal annual installments of…

A: Borrowed amount = $10,000Rate on unpaid balance = 5%Number of annual payments = 10 Rate charged for…

Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…

A: The proceeds would be the difference between Present value at new terms and old terms. and we  will…

Q: Lawrence signs a note promising to pay Justin $2500 at 11.25% compounded monthly in 7 years.…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both…

A: Simple interest does not involve compounding and no interest on interest is considered.

Q: 3. Joe Burrow loans Kenyan Drake $400,000. Burrow accepts a 5% note, which requires quarterly…

A: Bonds are a representation of a promise to pay interest, typically every two years, and to repay the…

Q: John deposits $2,000 in the first year, $800 in the second year and $600 in the third year to WMW…

A: future value formula: future value = present value×1+rateyear

Q: Bozo owes $5000 due in one year and $7,000 due in seven years. Unfortunately Bozo is unable to meet…

A: Loans are financial arrangements wherein one party lends funds to another with the expectation of…

Q: red decides to invest $1000 into an account which earns a floating interest rate. For the first…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: What is the interest on interest if interest is compounded

A: Calculate the compound interest amount as follows:- Total amount after 3 years =P x (1+R/100)n…

Q: Mr. N. invests $5,000 in a certificate of deposit (CD) at his local bank. Hereceives 2 percent…

A: RATE 2% YEARS 5 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $5,000

Q: Greg owns two debt payments - a payment of $5338 that was due in 11 months ago and a payment of…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: How much did Bill pay Sam for the note?

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: At the time of her grandsons birth a grandmother deposits 13,000 in an account that pays 6.5%…

A: PV=Initial deposit = 13000   r=rate=6.5% (compounded monthly) n=21 years Monthly rate=r= 6.5%/12 No…

Q: Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both…

A: We have to consider present value and future value of both.

Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…

A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

Q: Jasmine is making quarterly contributions of of $440 to her savings account which pays interest at…

A:

Q: Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If…

A: The promissory note refers to a debt instrument that is issued by a person who writes a note by…

Q: X, Y, and Z each borrow $10,000. They agree to repay their loans in full in one year. X borrows his…

A: Present Value of each X, Y and Z = pv = $10,000Time = t = 1 yearXCompound = nx = monthly =…

Q: urchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a…

A: The loans are paid by the monthly payments that carry the payment for interest and payment for…

Q: Frankie purchased a house for $185,000 . He put 20% of the purchase down as a down payment. He…

A: Frist we need to calculate monthly payment for loan by using this equation PMT   =PV*i1-1(1+i)n…