(Calculating the number of annuity periods) You've just bought a new flat-screen TV for $3,400 and the store youbought it from offers to let you finance the entire purchase at an annual rate of 12 percent compounded monthly. Ifyou take the financing and make monthly payments of $110, how long will it take to pay off the loan? How much willyou pay in interest over the life of the loan?a. The number of years it will take to pay off the loan is 3.1 years. (Round to one decimal place.)b. The amount you will pay in interest over the life of the loan is $(Round to the nearest cent.)

The problem involves the determination of the period and the total interest in annuity payments. An…

Answered: (Calculating the number of annuity…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
( Annuity number of periods ) You've just bought a new flat - screen TV for and the store you bought it from offers to let you finance the entire purchase at an annual rate of 16 percent compounded monthly . If you take the financing and make monthly payments of $ 100 how long will it take to pay off the loan ? How will you pay in interest over the life of the loan ? \$3.400
(Annuity number of periods) You've just bought a new flat-screen TV for $3,600 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 14 percent compounded monthly. If you take the financing and make monthly payments of $130, how long will it take to pay off the loan? How much will you pay in interest over the life of the loan? a. The number of years it will take to pay off the loan is years. (Round to one decimal place.)
(Annuity number of periods) You've just bought a new flat-screen TV for $3,000 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 16 percent compounded monthly. If you take the financing and make monthly payments of $130, how long will it take to pay off the loan? How much will you pay in interest over the life of the loan? a. The number of years it will take to pay off the loan is years. (Round to one decimal place.) b. The amount you will pay in interest over the life of the loan is $. (Round to the nearest cent.)
(Components of an annuity payment) You take out a 20-year mortgage for $275,000 to buy a new house. What will your monthly payments be if the interest rate on your mortgage is 6 percent? Use a spreadsheet to calculate your answer. Now, calculate the portion of the 120th monthly payment that goes toward interest and principal. Use five decimal places for the monthly interest rate in your calculations. a. Using a spreadsheet to calculate your answer, your monthly payments will be $ ( Round to the nearest cent.)
You take out a 30-year fixed rate mortgage for $160000 at 4.4% compounded monthly. a) Make a spreadsheet and calculate your monthly payment by experimentation. What is your monthly payment? $ b) You round your monthly payment up to the nearest hundred dollars. Adjust your spreadsheet. When do you pay off the loan?
(please finanas question correct answer) You want to buy a $243.000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. How much im the loan amount going to be? What will your monthly payments be if the interest rate is 5%? What will be your monthly payments if the interest rate is 6%?
Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this loan are $ 1193.54. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments? If you put $ 1193.54 per month into an annuity earning 7.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?
You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ 181800 b) What will your monthly payments be if the interest rate is 6%? 1089.98 C) What will your monthly payments be if the interest rate is 7%? Submit Question
You are going to buy a house and borrow $542474 with a 30-year mortgage. Your interest rate is 3.37%. What will be your monthly payment? (Remember that you need a monthly "r" and a monthly "t".) Answer:

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