Roscoe signs a note for $2000 due in 18 months at 15% monthly. After five months, Gertrude sells it to Horace. Horace determines the present value at 18% monthly. What are the proceeds?

Q: Karen owns a rental house in Ruston. Her policy requires the renter to make an initial deposit equal…

A: According to the information, the initial deposit is made on February 1, 2018 post which payments…

Q: Nate bought a home for $143,000 with a down payment of $15,000. Nate's rate of interest is 6.75% for…

A: When we buy a large ticket item like a home we usually take loan for that. The loan is repaid…

Q: Pat and Joe are divorced. The divorce settlement stipulated that Joe pay $525 a month for their…

A: A person may put aside a specified amount and also make periodic deposits to achieve their financial…

Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: How much money did he have for retirement?

A: Future Value of annuity = A= R* (1+rm)n-1rmwhereA - future valueR - periodic paymentr - nominal…

Q: June Watson is contributing $2500 each year to a Roth IRA. The IRA earns 4.2% per year. How much…

A: To calculate the future value of June's Roth IRA after 40 years, we can use the formula for compound…

Q: Kyler deposits $225 each month into an annuity at 6.2% annual interest for 25 years . At the end of…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Alan loans $3750 to Betty at a 6.2% simple interest rate. Betty agrees to repay the loan after 13…

A: Simple rate of interest is calculated by multiplying the rate with principal and adjusting the same…

Q: Eugene began to save for his retirement at age 26, and for 10 years he put $ 425 per month into an…

A: Here we have to use the concept of future value to determine the retirement amount.  The amount…

Q: John borrows 10,000 from Tony and agrees to repay the loan with 10 equal annual installments of…

A: Borrowed amount = $10,000Rate on unpaid balance = 5%Number of annual payments = 10 Rate charged for…

Q: Fatimah pays monthly rent of $520 for her townhouse. If she bought the property, the mortgage loan,…

A: When a series of deposits or payments are made of equal amounts at equal intervals of time, it is…

Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…

A: The proceeds would be the difference between Present value at new terms and old terms. and we  will…

Q: Remy obtains a 30-year mortgage in the amount of $625,000 for a co-op. She secures a 7/1 ARM at an…

A: ARM is a type of variable interest loan, where the interest amount changes after the initial period.…

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Fred owes $10,000 due in three years and $5,000 due in ten years. Fred is allowed to pay off both…

A: Simple interest does not involve compounding and no interest on interest is considered.

Q: Joseph purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided…

A: The purchase price of an annuity corresponds to current worth of annuity payments that make investor…

Q: Jennifer invests $2,400 at the end of each year for 11 years in an ordinary annuity at 10% interest…

A: Periodic Payment = $2,400 Time Period = 11 Years Interest Rate = 10%

Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years.…

A:

Q: Peter buys an item from Sue and signs a note to pay $315 in 10 months. Then, 3 months before the…

A: Due to the legal duty for a business to return borrowed monies in the future, sometimes with…

Q: John deposits $2,000 in the first year, $800 in the second year and $600 in the third year to WMW…

A: future value formula: future value = present value×1+rateyear

Q: Eugene began to save for his retirement at age 27, and for 14 years he put $ 275 per month into an…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: A couple buys a $190000 home, making a down payment of 23%. The couple finances the purchase with a…

A: Individuals and couples usually take loan when they buy homes because of the fact that houses are…

Q: red decides to invest $1000 into an account which earns a floating interest rate. For the first…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: Candace borrows $4000 from Nick due in 10 years with simple interest at 8% monthly. Two years after…

A: The concept of TVM refers to the inherent ability of money to earn interest which makes money earned…

Q: Marcus receives an inheritance of $11,000. He decides to invest this money in a 15-year certificate…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: A couple buys $160000 home, making a down payment of 17%. The couple finances the purchase with a 15…

A: Here, Particulars Values Purchase value   $ 160,000 Down payment 17.00% Number of years…

Q: Margo borrows $400, agreeing to pay it back with 8% annual interest after 17 months. How much…

A: We need to use simple interest formula to calculate interest to be paid by Margo. Interest =…

Q: How much did Bill pay Sam for the note?

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Fred owes $12000 due in two years and $8,000 due in twelve years. Fred is allowed to pay off both…

A: We have to consider present value and future value of both.

Q: Erika inherits $20,000, and decides to invest it in an account earning 6.25% interest, compounded…

A: Formula Future value = PV*(1+i)n Where PV - Investment i.e. $20,000 i - Semi annual interest rate…