please help me with the following questions? 1. Determine the total amount of an investment of $1,400 at 3.5% simple interest for 48 months. 2. Determine the total interest on a loan of $5,000 if the interest rate is 6.24%, compounded monthly for 12 years. 3. Use a TVM solver to determine the interest rate on a loan of $5,400 if interest is compounded monthly for 72 months and the final amount of the loan is $6,965.35. List the values you used for present value, future value, number of years, and number of compounding periods per year. 4. Use a TVM solver to determine the monthly payment of a lease of $21,568 if the interest rate is 4.8% compounded monthly for 48 months. 5. Over a five-year period, the maintenance on a car included two oil changes per year ($48 each), new brakes ($452), new tires ($678), and a new set of spark plugs ($145). What is the average yearly maintenance fee on the car for the five-year period? 6. Compare the cost of borrowing $4,300 for six months (180 days) in the following two scenarios. How much will you save if you take out the bank loan as opposed to the cash advance? You take out the money as a cash advance at 19.99%, compounded daily. Your creditor charges a cash advance fee of $5. You take out a bank loan for the amount of the purchase at 6.75%, compounded monthly.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you please help me with the following questions? 1. Determine the total amount of an investment of $1,400 at 3.5% simple interest for 48 months. 2. Determine the total interest on a loan of $5,000 if the interest rate is 6.24%, compounded monthly for 12 years. 3. Use a TVM solver to determine the interest rate on a loan of $5,400 if interest is compounded monthly for 72 months and the final amount of the loan is $6,965.35. List the values you used for present value, future value, number of years, and number of compounding periods per year. 4. Use a TVM solver to determine the monthly payment of a lease of $21,568 if the interest rate is 4.8% compounded monthly for 48 months. 5. Over a five-year period, the maintenance on a car included two oil changes per year ($48 each), new brakes ($452), new tires ($678), and a new set of spark plugs ($145). What is the average yearly maintenance fee on the car for the five-year period? 6. Compare the cost of borrowing $4,300 for six months (180 days) in the following two scenarios. How much will you save if you take out the bank loan as opposed to the cash advance? You take out the money as a cash advance at 19.99%, compounded daily. Your creditor charges a cash advance fee of $5. You take out a bank loan for the amount of the purchase at 6.75%, compounded monthly.

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