Answered: loan | bartleby

Business

Economics

loan

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Find the nominal interest compounded quarterly equivalent to 12.00% effective interest?

A: Effective annual interest rate is rate that is regarded as the real return on a loan or savings for…

Q: Use the amortization table below to find the monthly mortgage payment for a $196,000 loan at 6.25%…

A: Mortgage installments includes the principal and interest payment. It is usually a a fixed payment…

Q: QUESTION 2 a) Assume that you borrow $30,000 to purchase a new automobile and…

A: Given; Amount borrowed= $30000 Interest rate; r= 4% Time period; n= 4 years

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: Given, Quarterly Deposit= $1,250 Monthly Interest Rate=6% Therefore, Quarterly Interest Rate=…

Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…

A: here we calculate the future value and the effective interest rate of the following , so by using…

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

Q: An investment company is going to place $300,000 into an annuity. Then, it is going to add $25,000 a…

A: An investment is the responsibility of money or capital to something with the expectation of profit…

Q: Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: If I loaned 167,569 today and promised to pay it back after 5 years to the bank with monthly…

Q: Question 1: If you borrowed 18000$ at 4% annual interest. You agreed to repay the loan with five…

A: Answer; 1)Total Interest: $2,216.44 2)Interest= $448.82Principal=$3,594.47 3)Balance after 3rd…

Q: homeowner planning a kitchen remodeling can afford a $700 monthly payment. How much can the…

A: Given, R = $700 Time = 5 years Rate (r) = 9%

Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…

A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…

Q: A bank sales a pledge of savings certificate of 500,000$ to pay 10 years later. to a 4% continuous…

A: The information which has been given to us is as follows:- Future value is $500,000 n is given to…

Q: How much will a bank deposit of $2,000 that pays 10% compound interest be worth at the end of 3…

A: Compounding interest is a type of interest calculation where the interest earned on a principal…

Q: Calculate the monthly mortgage payment with the following conditions: $515,000 borrowed, 3.15%…

A: According to question the total amount borrowed for the mortgages is $515,000, with the interest…

Q: A student obtains a loan to pay one year of college tuition, which costs $18,000 with 6% which he…

A: Given, Cost- $18000 ROI- 6%

Q: A person borrowed $200 for one month and paid $30 in interest. However, she did not know whether the…

A: We can calculate the total amount to be repaid and the annual interest rate for both simple and…

Q: Jack promises to pay $1000 at the end of 6 months in obtaining a loan from a banker B who charges 6%…

A: Annual interest rate can be calculated by using the following formula.

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: Example: Imagine you deposit 2000 TL at a monthly compounding rate of 6% for the first 2 years, and…

A: The measure that depicts the value of an investment that is being made in present on a specific date…

Q: You are getting a loan to buy your first home. It is a $250,000 home with three bedrooms and two…

A: In the business cycle, a recession is a negative trend characterised by a decline in production and…

Q: You are now about to pay P50,000 to a friend whom you have borrowed some money fifteen months ago.…

A: Given information, Future value (F): P 50,000 Interest rate (r): 8% annually Time period (t): 15…

Q: Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid…

A: To calculate the nominal interest rate and effective interest rate, we can use the information…

Q: What is the total cost of interest?

A: Total cost of interest = (monthly MorTgage Payment x Year x 12) -(Loan Amount ) Monthly Mortgage…

Q: Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00…

A: Given Mr. Benedito borrows $50,000, So present value P=$50,000 The value of the promissory note is…

Q: 6) Two annuitics in perpetuity have the same effective annual interest rate. The first annuity pays…

A: Given that; Two annuities in perpetuity have same effective annual interest rate. The first annuity…

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: A department store has offered you a credit card that charges interest at 1.53% per month,…

A: Nominal interest rate and the effective annual rate are calculated as follows:-

Q: if I loaned 167,795 today and promised to pay it back after 5 years to the bank with monthly…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: 17. What is the effective annual interest rate if the nominal interest rate is 6%, compounded…

A: Formula used - Effective annual interest rate = (1 + (nominal rate / number of compounding periods))…

Q: At 8% annual interest compounded monthly, how long will it take to become a millionaire if you…

A: The annual interest rate is 8%, compounded monthly The amount invested is $150,000 We have to find…

Q: You bought an antique car three years ago for $500 000. Today it is worth $650 000.(a) What annual…

A: Time (t =) 3 years; Principle (P) = $500,000 Worth after 3 youlf x= $ 150,000

Q: You want to borrow $41,611. You must repay the loan in 13 years in equal monthly payments and a…

A: Loan amount (PV) = $41,611 Term of loan = 13 years Interest rate = 15% nominal per year

Q: 4) You collect rent from your tenant at the beginning of each month. Rent is $1250 in the first…

A: Here initial rent received per month = $1250 So, rent per year = $1250*12 = $15,000 every year rent…

Q: You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will…

A: The future value of a deposit refers to how much the deposited money will grow over time,…

Q: In 1895, the first U.S. Open Golf Championship was held. The winner’s prize money was $150. In 2016,…

A: Compounded Annual Growth Rate: If an investment is growing or increases at a compounded interest…

Q: 45.

A: Monthly average in 2017 = $71.88 Increase in annual rate (r) = 3% per year n= 2020 - 2017 = 3 years

Q: If you borrow $ 30,000 at 6% simple interest per year for seven years, how much will you have to…

A: Simple Interest = (Principal * Rate * Time) / 100 ie SI = (P * R * T) / 100 Amount = Principal +…

Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.

A: The investors as well as consumers borrow or take loans funds from banks for investment or for…

Q: You borrow $ 27965 at 12.25 % interest compounded monthly. If you are unable to make any payments…

A: We use the compound interest formula to calculate the amount due at the end of 5 years. The formula…

Q: Calculate the total interest earned, if you save $68 each month, Starting today, for 11 more…

A: Here's how to calculate the total interest earned on your savings:1. Define variables:Monthly…

Q: To find the balance in the account at the end of the calendar year, we calculate the effective…

A: The cash Flow Diagram is given below

Q: ohn paid $500 per month for 20 years to pay off a mortgage on his house. If his down payment was…

A: Future value and present value are the economic terms that are used to determine the future or…

Question

You borrow $70,000 to build a house. The interest rate on your loan is 1% per month and you will make a total of 36 monthly payments. What is your monthly payment? a. $1372 b. $1568 c. $2324 d. $2656

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

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment.
Please give me the exact solution of problem below You have $25,000 in an account that pays 6% interest compounded annually. You want to make equal annual withdrawals so that the money lasts 8 years exactly. (i) Find the amount of each withdrawal. (ii) Find the amount of each withdrawal if the money must last 12 years.
Help ( economics) not finance
Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the effective annual interest rate. b. Nominal rate is 10% compounded quarterly. Find the effective semi-annual rate. c. The effective annual interest rate is 16.28% and compounding is monthly. Find the nominal interest rate.
QUESTION 3 if you invest $1,000 for 3 years in a term deposit with simple annual interest rate of 10%, the future value of the deposits at the end of the term will be Do not type the $ sign. Express your result with no decimals.
You borrow $6,000 for 90 days at 6.5% interest. The lender uses a 365-day year. You make a payment of $1,400 on day 36 (36 days after getting the loan). Calculate your balance after the $1,400 payment is applied.
You buy a car for $27000. You get a loan at 7% interest compounded yearly. You will have 60 equal monthly payments of 5543.63 each month. How much total interest will you have payed on the car loan once all of your payments are complete..
Chris makes a deposit of $500 into his savings account at the beginning of each year for the next 20 years. If the account earns 5% interest rate per year compounded annually, what will be the future value at the end of 20 years?Need to calculate.
QUESTION 4 A cash flow consists of $100 income at the end of Year 1, $200 at the end of Year 2, $300 at the end of Year 3, and so forth for ten years. What is the equivalent uniform annual cash flow? Use i = 10%.
Suppose you borrow $5,000 at 7.25% interest for 14 months. What is the maturity value?
1. What interest rate compounded monthly is equivalent to 10% effective rate?
Jesse wanted to double his money at 3% annual interest compounded monthly. How long will it take to double your money?