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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Katrina has the option of an 8-year nonsubsidized student loan of $31,000 at an annual interest rate of 2.5% or an 8-year subsidized loan of $31,000 at an annual interest rate of 4.5%. Determine for which loan Katrina will pay less interest over the term of the loan if she starts making payments 2 years after obtaining the loan. (Assume Katrina makes monthly payments for each loan. Round your answers to the nearest cent, as appropriate.) The total interest paid on the nonsubsidized loan is $ , and the total interest paid on the subsidized loan is $ . Therefore, Katrina will pay less interest on the
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Travis currently owes $8,000 to a friend who is charging him interest of 2.70% p.m. He is required to settle the loan with two equal payments, one today and the other in five months. Calculate the size of the payments using five months as the focal date.
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While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of $320 for the next 3 years and 6 months. She was charged an interest rate of 4% compounded semi-annually for the entire term. a. What was the purchase price of the car? b. What was the total amount of interest paid over the term? Since the birth of her daughter, 18 years ago, Jeremy has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.00% compounded monthly for the first 9 years and 3.60% compounded monthly for the next 9 years. a. Calculate the value of the fund today (the end of 18year term b. How much of this is interest?

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