1.1 Suppose Thabo wanted to buy some household items that were on sale but did not haveenough money. He needed R5 000 and had the following options available to him:Option 1:a. A friend agreed to lend Thabo the money at a simple interest rate of 15% per annum for aperiod of two years. Use the provided formula to calculate the total amount that Thabo canrepay in option 1.A = P[1 + (1)(n)]b. Use the above answer to show the monthly premium under option 1:

Answered: Image /qna-images/answer/43747ecd-ecac-44c4-83a6-ec5fcaf6c738.jpg

Answered: Suppose Thabo wanted to buy some…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's future value A, or the total amount due at time t. P = $15,000, r = 5.0%, t = 4 years $(Round to the nearest cent as needed.) ...
The debtor wants to pay off a debt due from three amounts: 1000 riyals, 1500 riyals and 2000 riyals, on dates separated from today by 30, 35 and 40 days, in one batch after 38 days. What is the basic value of the payment, given that the rate used is 10%?
Emma wants to donate $1,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of j4=2.47% p.a. effective and the first scholarship will be first awarded 2.5 years after the date of the donation. (b) Assume that the fund's earnings rate rate has changed from j4=2.47% to j4=2.22% one year before the first scholarship payment. How much does Emma need to add to the fund at that time (one year before the first scholarship payment) to ensure that scholarship amount will be unchanged (rounded to two decimal places)? a. 120871.62 b. 117931.61 c. 116810.57 d. 113655.15
0.049 With PV = 100,000, i = 12 and n = 276, we are now ready to find the monthly payment PMT, by substituting these known values into the formula. Simplify and round the result to the nearest cent. PMT = PV 1 (1 + i)- 0.049 12 PMT = -276 0.049 1 - 1 + 12 Thus, the monthly payment on a 23-year, $100,000 mortgage at 4.9% per year is $
(5) A loan oF P50,000 is ma de for a period of 20o months, at a Simple interest rate of 20% what tuture amount is dve atthe end ?
The Peel Trading Company received an invoice dated September 20 for $16,000 less 25%, 20%, terms 5/10, 2/30, n/60. Peel made a payment on September 30 to reduce the debt to $5000 and a payment on October 20 to reduce the debt by $3000. (a) What amount must Peel remit to pay the balance of the debt at the end of the credit period? (b) What is the total amount paid by Peel?
Mr. Bingle who is currently 65 yrs. old and in retirement is looking to invest $400,000 (about 1/3 of his retirement assets), and his local banker is offering the following: 1 year CD at 5.00% 5yr CD at 4.75% 10yr CD at 4.50% 20 yr CD at 4.25% Which option would you recommend and why?
Currently, student loans have a payoff time of 25 years at an interest rate of about 7.5% compounded monthly. Suppose the remaining principal of your student loan is $33,760 and the remaining payoff time is 15 years at the 7.5% rate. You recently inherited $40,000 and can't decide if you should pay off your student loan or invest the money in a high yield savings account. Before moving on... Determine the total amount of the loan you will pay back after the remaining 15 years.
Nine years from now, Sam wants to have an amount available to deposit into an account that earns 6 percent compounded annually. This account is to provide Sam with an income of $10,000 at the end of each year for 10 years. To accomplish this, Sam invests in an 8-year bank certificate that pays 8 percent compounded semiannually, and he will use this certificate, plus interest , to establish his income account. What should be the principle value of the certificate be ? solving these math details
Suppose Avary, who works for Nasa, buys a fried chicken franchise in Atlanta with a full price of $858,000. Avary will pay 10% of the full price as a downpayment, and will borrow the rest on a 30-year term loan. The annual rate of interest on the loan is 6%, and is compounded monthly. What will the monthly payment be?

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