Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 4 years to settle the loan. a. Calculate the size of his payments. Round to the nearest cent b. What was the total interest paid during the period? Round to the nearest cent c. What was the interest portion of payment number 3?

Kyle received a loan of $8,000 at 4.32% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual payments for a period of 4 years to settle the loan. a. Calculate the size of his payments. Round to the nearest cent b. What was the total interest paid during the period? Round to the nearest cent c. What was the interest portion of payment number 3?

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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Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 % Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 %
Tom took out a $20,000 loan for 146 days and was charged simple interest. The total interest he paid on the loan was $488. As a percentage, what was the annual interest rate of Tom's loan? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas.
Please all answer
Erik borrowed $25,000 from a local bank at 4% compounded semi-annually to start a business. After 2 years, the interest rate on the debt changed to 6% compounded monthly. a. What would be the accumulated amount of the debt in 2 years? Round to the nearest cent b. What would be the accumulated amount of the debt in 4 years?
Louie borrowed $2,000 from Phil. Under this agreement, Louie would repay with $1,300 at t = 1 and $1,700 at t = 4 where time is given in years. Louie successfully made the payment in full at t = 1, but he faced some financial difficulty and was only able to pay 60% of what he owed at the time of the second payment. a. What was the annual interest rate (as a percent) for the original loan? b. What is Phil's annual yield (as a percent) for this four-year period?
Phillip purchased a machine for $20,000 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 7.82% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. a. What was the principal portion of payment number 4? b. What was the interest portion of payment number 4?
Karen obtained a $25.000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay the loan in 7 1/2 years? (Do not round Intermedlate calculations and round your final answer to 2 decimal places.) Monthly payment $4 a-2. How much interest will Karen pay over the life of the loan? (Round Intermedlate calculations to 2 declmal places and round your final answer to the nearest dollar.) Total interest %$4 6 of 9 Next > < Prev connect T
Casey purchased a machine for $28,500 for his company. He paid 5% of this amount as a down payment and financed the rest at 4.82% compounded quarterly_ He paid $1,125 at the end of every quarter to settle the loan. What was the interest portion of payment number 4? Round to the nearest cent. What was the principal portion of payment number 4? Round to the nearest cent.
Samuel Ng received a 3-year subsidized student loan of $15,000 at an annual interest rate of 4%. What are Samuel's monthly loan payments for this loan when he graduates from college in 2 years? (Round your answer to the nearest cent.)
Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $43.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
Montel loaned $6800 to a friend for 13 months at an annual rate of 7.7% simple interest. How much interest did the borrower owe? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Interest owed
Nathan was charged interest of $72 for a loan amount of $2,000 that he borrowed for 150 days. What annual rate of simple interest was charged? % Round to two decimal places

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