QUESTION 2   a)                    Assume that you borrow $30,000 to purchase a new automobile and that you finance it for a four-year loan at the interest rate of 4% per year.  If you make one payment per year for four years, what will the yearly payment be? What is the total amount that will be paid out on the loan?

Q: A sum of money invested at 12% interest, compounded quarterly, will triple in amount in…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…

A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…

Q: Choose the equation below that can be used to determine the value of "P" for a known interest rate,…

A: Present value refers to the value right now of some amount of money in the future. For instance, if…

Q: If you borrow $4,000, what single payment must you make after 5 years to repay the principal and…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Assume you borrow $30,000 today at a rate of 13%. The loan will be returned over a five-year period,…

A: To calculate the annual payment for a loan using a spreadsheet, use the PMT function in Microsoft…

Q: Compared the interest earned by $13,000 for seven years at 8% simple interest with interest earned…

A: Given:  Principal amount ( P) = $13,000 Interest rate(r) = 8% Time(t) = 7 years

Q: 1. You needed $10,000 and obtained the following loan: Loan specifics: You are expected to pay 24…

A: You are expected to pay 24 equal monthly installments (SA per month) at APR 12%, compounded monthly,…

Q: If a bank says that it has a 5% nominal interest rate, but money is compounded monthly in that bank,…

A: An effective annual interest rate is basically the actual return on a savings account or on any…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Given that there are withdraws of $1000 in the fourth period and $2800 in the eighth period.…

Q: An automobile loan of $15,000 at a nominal rate of 10% compounded monthly for 36 months requires…

A: Based on the need of question , simple mathematical calculations have to be done to find out values.…

Q: If you invest $4,000 at 3% interest compounded monthly, how long will it take you to reach $5,000 ?

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: The U.S. Department of Interior is planning to build a dam and construct a hydroelectric power…

A: AlternativesDesign AInitial cost=$100 MAnnual benefit=$20 MAnnual cost=$8 MDesign BInitial cost=$160…

Q: If you want to have $100,000 in your saving account in ten years, how much do you need to deposit…

A: The compounded monthly means interest is calculated and added to the principal monthly, while…

Q: How long will it take money to quadruple itself if invested at 13% compounded annually?

A: Money quadruples meaning current value becomes four time in n years.

Q: a) What is the future value of a series of payments of $6,000 each, at the end of 8 years, at 6%…

A: Ordinary annuity is the equal series of payment is made at constant interval at the end of each…

Q: (i)  If $10,000 is needed in 12 years, how much should be deposited at the end of each year into an…

A: Given future value = 10000 $ Time = 12 years Interest rate = 5 % compounded annually

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly  This loan is a fixed payment loan…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Given: Annual interest rate = 7% Interest is compounded semi-annually. Hence, i (rate per period) =…