How much does this strategy save Jeff if he pays off the loan in full with a single payment after 18 months

Q: John borrows money from a bank. Interest rate is 9.5%pa compounded half yearly. He has

A: Interest rate=9.5%Compounding semi annually.

Q: for the last fifteen days?

A: A promissory note is a negotiable instrument. It is a document written and signed by the payer, it…

Q: vails the loan offered by his company with a minimal interest of 1.5% every 6 months. He borrows…

A: Loan is an agreement between two people where one lends a sum of money and the other borrows. The…

Q: Nick saves $175 per month, deposited directly into his credit union account on payday, the last day…

A: In order to calculate the amount at the end of a specific period of time, the future value of the…

Q: Stafford loans are the most popular formof student loan in the United States. The current interest…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Ali makes the same payment every two months to pay off his $61,600 loan. The loan has an interest…

A: Given: Present Value (Loan Amount )=$61600A=Amount paid every yeari=rate of interest i.e.…

Q: Albert takes a loan out to buy a second-hand car. The loan is for £1,500. The interest rate on the…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…

A: Given:

Q: Mr. Smith has borrowed $20,000 from the bank to start his small book-keeping business. He has…

A: Using excel RATE function

Q: Truman is saving up for a $7,000 trip to Fiji. If his bank account earns 5.8% compounded monthly and…

A: Final amount required = $7000 Interest rate = 5.8% per annum  Semiannual deposit (A) = $450 Let n =…

Q: If Phil borrows $40,000 from a loan company at an interest rate of 6.5% per year compounded weekly,…

A: Here, Loan amount = $40,000 Quarterly payment of the loan = $800 Interest rate = 6.5% compounded…

Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…

A: Loan amortization refers to the process of paying off a loan over time through regular payments that…

Q: Joel is considering putting a $4600 laptop purchase on his credit card, which has an interest rate…

A: Compound = monthly = 12 Present value = pv = $4600 Interest rate = r = 5.2 / 12 % Monthly Payment =…

Q: Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not…

A: Compound interest can be defined as the addition of interest to the principal balance. It can be…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Matt Wilson has decided to finally pay off his credit card. He currently owes $6,500 and he has…

A: In this question payment is done on monthly basis but interest is compounded weekly. To solve the…

Q: Adam  who works for apple, buys a car in boston with a full price of $858,000. Adam will pay 10% of…

A: The time value of money concept is important in many areas of finance, such as investing, borrowing,…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: Michael needs an investment loan. He gets a simple interest amortized loan for $12,000 at 9 % for…

A: Amortized loan include a series of equal timely instalments paid at the end of each time interval.…

Q: Joey realizes that he has charged too much on his credit card and has racked up $5,400 in debt. If…

A: Annuity refers to a regular stream of cash flows which occurs over a definite period. If it occurs…

Q: Bill invests his savings into two accounts, one paying 6% simple interest per year and the other…

A: Let the investment in 12% simple interest paying account be a  Therefore amount put in lower…

Q: If Greg borrows $140.00 from the bank at 6.5% exact simple interest, how much interest does Greg owe…

A: The simple interest can be computed using the principal amount, the time period, and the interest…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: Peter makes a deposit at the end of every month into a savings account that earns interest at 3.0%…

A: There is need of financial planning needed for needs of tomorrow so we should prepare systematically…

Q: Eugene is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the…

A: Simple interest rate is the rate which is calculated without taking any compounding frequency.

Q: Jason has a credit card with an APR of 29.5% and a current balance of $13,150.35. He wants to pay it…

A: APR = 29.5% Monthly interest rate (r) = 29.5%/12 = 2.45833333333333% Current balance (PV) = $…

Q: ladyn is looking to purchase a home for $182,000 and will make a $40,000 down payment in order to…

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

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

Q: Sam and Randy each take out a loan for $9,927. Sam's loan has an annual rate of 16.4% with…

A:

Q: Jarret loans Adam RM 300 for a weekend trip to Las Vegas. Adam agrees to pay Gary RM 320 in one…

A: Future value of a present amount With present value (PV), periodic interest rate (r) and period (n),…

Q: Joshua borrows 35,000 pesos from a cooperative to buy a laptop. He will repay the loan in equal…

A: Borrowing refers to the act of taking money from another party with known intention to repay that…