Diane just graduated with a psychology degree. During college, Diane accumulated $12,000 in student loans.Knowing that you are a business major, she asks you to help her calculate her quarterly loan payment so that shecan budget appropriately. Her loan must be paid back completely in five years. The loan payment is due at thebeginning of each quarter. The annual interest rate is 8%. Help Diane calculate her quarterly loan payment.n = 5 years x 4=20i=82=4 = 2%

Based on the given information, Interest rate = 8%/4 = 2% Number of periods = 5 years x 4 quarters =…

Answered: Diane just graduated with a psychology…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Theadre Adams wants to open an accounting firm once she gets out of college in 4 years. She has determined that in order to open up her business she would need $160,000.00. She has determined that she would need a $30,000 down payment. The $160,000 would go towards paying out on a monthly basis a total of 4 years. What would her annuity payment be monthly in order to raise the money if she saves at an institution that offers 5.5% interest on deposit? If the same financial institution would then offer 8% on deposit over 48 months, what is the monthly payout of the annuity that she will use for her business’ monthly expenses?
Beginning three months from now, you want to be able to withdraw $2,600 each quarter from your bank account to cover college expenses over the next four years. If the account pays .66 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?
Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $11,500 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
After graduating with a master's degree, Jasmine combined all of her student loans into a single loan of $19,000.00 with an interest rate of 3.2% compounded quarterly. If she is planning to pay off the loan in 8 years, what will her quarterly payment be?The quarterly payment would be $. (Round to 2 decimal places.
14. Nadia takes out a loan of $150,000 to purchase an apartment. The loan is being charged a yearly interest rate of 2.5% applied monthly. Nadia is paying off the loan by making monthly payments of $500.00. (a) How much of Nadia's first payment goes towards paying interest and how much of it goes towards reducing the initial $150,000 loan amount? Show how you found your answers (b) Did Nadia reduce the loan amount she owed more in the first payment or the second payment? Justify.
Jennifer Lee, an engineering major in her junior year, has received in the mail two guaranteed-line-of-credit applications from two different banks. Each bank offers a different annual fee and finance charge. Jennifer expects her average monthly balance after payment to be $500 and plans to keep the card she chooses for only 24 months. (After graduation, she will apply for a new card.) Jennifer's interest rate (on her savings account) is 8% compounded daily. (a) Compute the effective annual interest rate for each card.(b) Which bank's credit card should Jennifer choose?
To pay for his college education, Lana is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12% interest. How much will Lana have in that account at the end of 8th year? $16,000 $24,600 $17,920 $27,552
Mike Branson invested his summer earnings of $6000 in a savings account for college. The account pays 2.5% interest. How much will this amount to in 6 months? Mike's savings will amount to $ in 6 months. (Round to the nearest cent as needed.)
Linda wants to buy a new car in a few years. She sets a goal to have $43,950 in her savings account to buy a car. Linda plans to save money for 5 years by making monthly deposits to a saving account at APR 2.5% compounded monthly. Round answer to two decimal places a. In order for Linda to reach her saving goal. How much will Linda need to save each money b. Overall Linda contributed how much of her own money into saving account?
Q5
Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .
How much interest, in total, will be earned? Need last

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