Pacific Telephone Bank loaned money to an engineering staff member for a radio-controlled model airplane. The loan is for a $1,000 for 3 years at 6% per year simple interest. How much money will the engineer repay at the end of 3 years?

Q: Joe's Machine Shop purchased a computer to use in tuning engines. To finance the purchase, the…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: What monthly payment will she be required to make if the car is financed over a period of 24 months?…

A: Loan Monthly Payments: These are payments made by the borrower to the lender for the purpose of…

Q: owner of a ski resort estimates that a new 4-person ski lift will cost $4,000.000. The owner begins…

A: Future value of the amount includes the amount being deposited and amount of compounding interest…

Q: Adrian has taken a loan to buy computer servers for their small bussiness. They need to borrow…

A: Borrowed amount is $91,000 Interest rate is 5.8% compounded quaterly Time period 7 years To Find:…

Q: Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in…

A: Loan amount (PV) = $ 61000 Interest rate = 4% Monthly interest rate (r) = 4%/12 = 0.333333333333333%…

Q: Jenson SawLogs borrows $34,500 to buy a new electric generator. The company agrees to make quarterly…

A: Given: P0=$34500r=10% i.e. 0.1K=4(quarterly payment)N= 2 years

Q: Slopes R Us needs to borrow $100,000 to increase its inventory of ski equipment for the upcoming…

A: Amortization is a process of gradually writing off the initial cost of an asset.

Q: A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost…

A: Future value required (FV) = $81000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4%…

Q: Windsor Tool Inc. has a $500,000 loan for a new EDM machine to be used in the tool/die production.…

A: Periodic Payment (PMT) = P * r * [(1+r)n /{(1 +r)n -1}] Where, P = Principal borrowed = $500,000 r =…

Q: A design studio received a loan of $5,850 at 4.40 % compounded semi-annually to purchase a camera.…

A: Amortization Schedule   Beginning Balance Interest Principal Ending Balance 1 $5,850.00 $64.00…

Q: The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000,000. The owner…

A: For accounting purposes, when an investor needs to make an investment in any project or asset and…

Q: Pool-N-Patio World needs to borrow $70,000 to increase its inventory for the upcoming summer season.…

A: Amortization of a loan refers to the process of paying off a debt over time, usually through a…

Q: A new home was purchased in Niagara Fall's Butler Heights subdivision for $375,000 by Karen. The…

A: Purchase price of house $ 3,75,000.00Down payment15%Finance Amount $ 3,18,750.00Amortization…

Q: For the following stream of free cash flows, calculate the npv if the discount rate is 12.5%

A: Net Present Value: It is the difference between the cash outflow and the discounted cash inflows.…

Q: Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in…

A: Monthly payments (EMI) for a given loan amount for a particular time period (in years) at a given…

Q: An engineering firm borrowed $500,000 at a 5%/year interest rate. They will repay the loan in 5…

A: Using Simple Interest: Amount borrowed (P) = $500,000 Tenure (t) = 5 years Interest rate (r) = 5% We…

Q: A loan for $16,000 is secured to pay for a new boat to use at the owner’s lake house. The loan is…

A: A loan repayment amount consists of 2 parts  - Principle and Interest. During the initial period of…

Q: The price of a new car is $36,000. Assume that an individual makes a down payment of 25% toward the…

A: The loan which is paid-off by making installment payments having two components as interest mount…

Q: U.S. Fax has been granted a loan from a commercial finance company for $1 million at a stated…

A: Effective Cost of Debt(ECD) refers to the total amount that is paid by borrower to lender for taking…

Q: Lush Gardens Co. bought a new truck for $56,000. It paid $6,160 of this amount as a down payment and…

A: Time, the value of money describes the concept that the money received today is more valuable than…

Q: The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its…

A: The rate which is applied to a financial product for one year is known as the annual interest rate.…

Q: Troy Juth wants to purchase new dive equipment for Underwater Connection, his retail store in…

A: concept. Interest payments and principal payments are required to be made on loan taken.

Q: 4. Suppose Dr.Campbell has a home purchase of $145,000 at the APR of 6% for 30 years, and he have…

A: Loan refinancing is the process of paying off the outstanding balance of current loan by taking a…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.