Answered: calculate the period required (to the…

calculate the period required (to the nearest year) to pay off his debt. Expressing the formula and workings (not using excel).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Suppose a man took out a 30-year loan with an annual rate of 6% to put an addition on his house. His…

A: Loan year=30 years Interest=6% Computer cost =$ 1,500 Here,we need to find amount of interest paid…

Q: Looking for steps on how to solve it using: y=p(1+r/n)^nt

A: Introduction Future Value The value derived for the money invested today, based on the time value…

Q: Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed…

A: A sum borrowed to meet any personal or business need is regarded as a loan. The loan is generally…

Q: What is the finance charge (in $) on the loan? $ (b) Use Table 13-1 to find what annual percentage…

A: Finance Charge: It is the cost in relation to borrowing money or the payment of any loan…

Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…

A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…

Q: paying $111 at the end of each month for 6 years. The bank charges interest on the loan at 7.71 %…

A: Monthly payment=$111Number of payment=72Interest rate=7.71%Monthly interest rate=0.6425

Q: PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 1.- Osmara Del Toro deposits her life…

A: Compound interest is a method of interest calculation where the interest earned is reinvested…

Q: Sandy Kupchack just graduated from State University with a bachelor's degree in history. During her…

A: In the given question, the amount is to be paid quarterly. Therefore, the effective rate to be used…

Q: Tim Houston purchased a wall unit for $2,300. He made a $600 down payment and financed the balance

Q: 3) Isaac invested $77.000 in an account paying an interest rate of 4.6% compounded quarterly.…

A: Q3.The initial investment (PV) is $77,000.The interest rate (r) is 4.6% compounding quarterly.The…

Q: Lamont borrows $315,000 to help finance the purchase of a townhouse and will be charged interest at…

A: The periodic interest rate can be found by using the following formula:

Q: on for 6 years and was charged om borrowed money from a simple interest at an annual rate of 8%. The…

A: Simple Interest can be calculated using the formula given below Simple Interest = (Principle x Rate…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,700 and financed…

A: Cost of sailboat = $8,350Down payment = $1,700Monthly payment = $237.38Number of period = 36 months

Q: On October 5, Tristan Sandino borrowed $3,050 to buy an English bulldog. The loan carried a rate of…

A: Simple interest is that interest amount which is computed only on the principal amount. In contrast…

Q: Dave took out a $5700 loan at 14% and eventually repaid $8892 (principal and interest). What was the…

A: STEP 1 The amount that a depositor is expected to earn on a principal sum at a predetermined rate,…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: finance charges refer to the fees or interest that a borrower pays to a lender for the use of credit…

Q: Scott finances a Jet Ski for $4,600 by taking out an installment loan for 48 months. The payments…

A: Rebate refers to the amount that is given back to the customer after the complete payment when the…

Q: Dave took out a $6200 loan at 14% and eventually repaid $10,540 (principal and interest). What was…

A: Future value of amount includes the original amount and amount of interest being accumulated over…

Q: Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed…

A: The Annual Percentage Rate (APR) is similar to the interest rate. It is on a yearly basis that is…

Q: Austin invested $13,000 in an account paying an interest rate of 63% compounded monthly. Easton…

A: The idea of the time value of money (TVM) holds that a quantity of income is valuable greater at the…

Q: He took out a personal, amortized loan for $53,500, at an interest rate of 5.9%, with monthly…

A: Loan amount=$53500Interest rate=5.9%Period=n=15 years=180 months

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: As per Bartleby honor code, when multiple questions are asked, the exe=pert is required only to…

Q: You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to…

A: Loan A fund that is borrowed from a financial institution or from an individual is known as a loan.…

Q: Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her…

Q: Dave took out a $5800 loan at 11% and eventually repaid $7714 (principal and interest). What was the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Question

While William was a student at Edinburgh University, he borrowed $15,000 in student loan at an annual interest rate of 9%. If he repays $2,000 per year, calculate the period required (to the nearest year) to pay off his debt. Expressing the formula and workings (not using excel).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Is there a formula (not in excel) that can be used to calculate this?

Solution

by Bartleby Expert

SEE SOLUTION

Similar questions

2. PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASEnrique Perez bought a house whose value is $1'900,000 cash. He paid $400,000 cash and the rest in 8 equal quarterly payments. If he is charged 10½ % nominal interest on the transaction, a) find the value of each of the quarterly paymentsb) find the total amount paid.c) Find the total amount of interest paid.d) Find the effective rate. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
You have just completed your four-year degree at Southwest Minnesota State University (SMSU)! Your student loans that you have accumulated while studying at SMSU total $25,000. Since you have graduated, you must now begin repaying these student loans. The loan’s annual interest rate is six percent (6%) and it requires four equal end-of-year payments. a) Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. B) What is the total amount that you will repay over this four-year period (principal + interest)? c) What portion or percentage are the total “Interest Payments” of the initial loan value of $25,000?
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7 1/2% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11? (Use Days in a year table.) (Round your answer to the nearest cent.) Jim Repay
On May 6, Jim Ryan borrowed $14,000 from Lane Bank at 7% interest. Jim plans to repay the loan on March 11. Assume the loan is on ordinary interest. How much will Jim repay on March 11?LU 16-1(2) Gail Ross met Jim Ryan (Problem 3) at Lane Bank. After talking with Jim, Gail decided she would like to consider the same loan on exact interest. Can you recalculate the loan for Gail under this assumption? LU 16-1(2)
Nikul
In order to start a small business, Samy borrowed RM40, 000 from a bank. The loan is repaid by monthly installment for five years. The interest charged is 5% on the original balance. (a) Determine the monthly payment. (b) Immediately after paying for three years and six months, he decided to pay off the loan. Using the Rule of 78, calculate the amount he has to pay.