Directions: Solve the following problems. 1. Glenda owes the bank some money. åt 4% per year. Afer fialka year, she paid PHP220.00 as interest. How much money does she owe the bank? 2. Martin takes a loan of PhP250,000 to buy a used truck at the rate of 9% simple interest. Calculate the annual interest to be paid for the loan amount.

Directions: Solve the following problems. 1. Glenda owes the bank some money. åt 4% per year. Afer fialka year, she paid PHP220.00 as interest. How much money does she owe the bank? 2. Martin takes a loan of PhP250,000 to buy a used truck at the rate of 9% simple interest. Calculate the annual interest to be paid for the loan amount.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Mr. P has a debt of Php5,000 due in five years is to be repaid. Php2,000 now and a second payment at the end of 6 years. How much should the second payment be if the rate of interest is 6% compounded quarterly
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments (principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $15,000 on the purchase of a new automobile, and the annual interest rate is 6% (0.5% per month). a. Monthly payments over a 36-month loan period will be how much? b. How much interest and principal will be paid within three month of this loan?
4. An engineering consultant wants to withdraw $16,000 per year for each of the next 10 years to purchase hardware and software upgrades. How much money must the consultant deposit initially in an account that earns 4% interest, compounded annually?
Karen and Sophia want to buy a $225,000 home. They plan to pay 20% as a down payment, and take out a 30 year loan at 3.95% interest for the balance. a) How much is the loan amount going to be? b) What will the monthly payment be for Karen and Sophia? c) How much of the first payment is interest? d) What is the total of the payments? e) How much interest was paid?
You borrow $70,000 to build a house. The interest rate on your loan is 1% per month and you will make a total of 36 monthly payments. What is your monthly payment? a. $1372 b. $1568 c. $2324 d. $2656
3. Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 estimated price in two years. She deposits $4000 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 5% per year with monthly compounding, how much must she deposit each month?
2. If we deposit $12000 at the end of year 0 into the bank with the annual interest rate of 6%. How much money will we have at the end of year 2? Draw the cash flow diagram.
1. You borrow $20,000 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after 6 months? How much is the interest?
Spectrum Cable has a special right now for $99 per month for new customers that includes TV/Internet/Phone. You must sign a 2 year contract. For the second year of the deal, there will be a 15% increase in the monthly cost. Right now, Cameron is paying: $60 for TV, $45 Internet, and $38 for Phone each month. Will he still save money in the second year; if so, how much money will he save each month? * Yes, he will save $120.45 monthly during the second year. No, he will not save money monthly during the second year. Yes, he will save $21.45 monthly during the second year. Yes, he will save $22.55 monthly during the second year.
QUESTION 1: A passenger car passing one toll road segment at Stoneway 6 of Bellaire City needed to pay $1.30 in year 2015. In year 2021, the same car has to pay $2.50 for the same segment. What is the annual rate of fee increase?
For the following cash flow find F for two cases , first , assume that the inter - period cash flow earns no interest , second , the inter - period cash flow earns interest . Assume the interest rate is 6 % per year , compounded quarterly . Show all your work , cash flows , before , and after , how did you calculate the effective interest rate for each case , and why .
2. Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn at a rate of 12% per year compounded semiannually through a company-sponsored savings plan. What amount can she withdraw 10 years from now? a. Draw cash flow diagram. 4 b. What amount can she withdraw 10 years from now?