Jenny takes out a loan of $30000 from Westpac for her small business at 6.0% compounded monthly and promises to pay it back over two years with equal monthly payments. Six months after taking out the loan (just after the 6th payment is made), she decides to refinance her loan at a lower rate of 4.0% compoundedmonthly offered by National Australia Bank (NAB) for the remaining term of the loan. Assuming she can do so immediately and there are no refinancing costs or charges, what will her new monthly payments be?Jenny's new monthly payments under new refinancing will be $(Round to the nearest cent)

Given Information: Initial loan amount (L) = $30000 Interest rate (r) = 6% per annum = 0.5% per…

Answered: Jenny takes out a loan of $30000 from…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sandra takes out a $ 22000 loan to be paid back in monthly payments of P over the next five years. The nominal interest rate is 9 % compounded monthly. After making the first payment one month from the date of the loan, she begins a habit of skipping two monthly payments after each payment of P. Determine the loan balance five years after taking out the loan.
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.45% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $3,600? Yes, under these conditions, Chuck will meet his goal.No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) try to negotiate a lower interest ratemake a higher down paymenttry to bargain for a higher sale pricetry to bargain for a lower sale pricemake a lower down paymenttry to negotiate a higher interest rate (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.95% loan if Chuck can pay 20% down. What…
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Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of $1,000 for 5 years and then withdraws the remaining amount 10 years from now. How much will she be able to withdraw 10 years from now, assuming the bank pays 6% compounded annually?
Bob wants to deposit $5000 into a bank account at the beginning of the next month and $200 per month into that same account at the end of that month and each subsequent month for the next 5 years. If the bank pays interest at the rate of 3% per year compounded monthly, how much will Bod have in his account at the end of 5 years? Assume that he makes no withdrawals during the 5 year period.
Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. She opts for the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction June 1 $49,500.00 Nov 30 7% (inclusive) ☐ ☐ Dec 31 7% Jan 31 7% Feb 28 7% Mar 31 7% Total combined interest…
Aziz is planning to attend college when she graduates from high school four years from now. She has made an arrangement with her father to do the household chores if her dad deposits R3570,00 at the end of every six months for the next four years into a bank account. The account pays 8,5% interest per annum, compounded semi-annually. Her father pays and additional R5550,00 into the account for every R3570,00 deposit he makes. The first deposit will be made six months from now. How much money will there be in the account for Aziz to pay for her college expenses?
Liz buys a new car for $18,600. She puts 15% down and obtains a simple interest amortized loan for the balance at 6. 25% for 5 years. Find her monthly payment and the total interest paid.
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Scott takes out a college loan today of $5,000 at 4.5% per year. Scott is expected to make 20 annual payments of $X at the end of each year to repay the loan, starting a year from today. But starting with the sixth payment, Scott can only pay one - quarter of $X at the end of each year. This goes on for 10 payments. The bank agrees to accumulate the unpaid balance at 4.5%. After making the 10 reduced payments, the loan is renegotiated with the bank. Calculate the revised level payment $P that will yield the bank 1% per year over the remaining 5 years of the term of the original loan.
Donna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500 each year for the next 10 years. She must make the first deposit one year from today, the day she signs the agreement. How much will she have when she makes her last payment 10 years from now?
Jack Bond plans to move into a rented flat in Melville in 8 month’s time. The owner of the flat, Ms Moneypenny, requires a deposit of R20 000 to be paid upon occupation of the flat to protect her against breakages. Luckily, Jack inherited R100 000 a couple of years ago, and he still has R18 424,38 left. YOU ARE REQUIRED TO: calculate the effective annual interest rate at which Jack should invest his money to enable him to pay the required deposit eight months from today.

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