The purchaser of a car paid $10,000 cash and agreed to pay $3000 at the end of 6 months for 10 years. He failed to make the first 5 payments of $3000 each. At the end of 3 years, he desires to pay the car by a single payment which will cancel both his accumulated liabilities and his future liabilities. What must he pay if money is worth 6% per annum compounded semi-annually?

Q: Scottie wants to accumulate $30,000 for a down payment for a house. He can only afford to set aside…

A: Future value needed = $30,000Payment = $300 every half year (i.e semi annually)Interest rate = 7.5%…

Q: Donald buys a machine from Biden Manufacturer and signs a contract that calls for a down payment of…

A: First, we need to determine the equivalent annual interest rate as the payments are made monthly,…

Q: Tom borrowed $80,000 at a rate of 6.5% from bank for his new house. This is a 30 year monthly paid…

A: Given, Tom borrowed = $80,000 Rate= 6.5% Time period= 30 year

Q: compounded daily. Answer the questions below. Do not round any intermediate computations, and round…

A: More is compounding of interest more is annual effective interest rate and more is accumulated…

Q: how much should the couple withdraw each month? If the couple decides to withdraw $6,000 a month…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: 8. Your brother-in-law borrowed $2,000 from you 4 years ago and then disappeared. Yesterday he…

A: Future Value Future Value is the value which is measured at a specified date at a given interest…

Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…

A: Here, Value of Car is $43,000 Down Payment is $2,150 Therefore, Loan Amount is : =$43,000-$2,150…

Q: he Nicols are buying a house selling for ​$435,000. They pay a down payment of ​$35,000 from the…

A: Data given: Cost of house = $435,000 Down payment= $35,000   Required: Amount of the​ mortgage= ?

Q: Diane borrowed $8000 at a rate of 7.5%, compounded monthly. Assuming she makes no payments, how much…

A: Future value is that amount which is required to paid by the borrower to his lendor at the time of…

Q: Your brother-in-law says you will pay him only 13 cents per day for each $200 borrowed. Assuming a…

A: Any sum borrowed from a bank, financial institution, or any acquaintance to fund personal or…

Q: While buying a new car, Mitchell made a down payment of $1,000 and agreed to make month-end payments…

A: Compound = Monthly = 12Down Payment = dp = $1000Payment = p = $240Time = t = (4 * 12) + 9 = 48 + 9 =…

Q: Alberto wants to buy a car in 10 years. This car costs $200, 000 today but its price inflates 4%…

A: The term "future value" typically refers to the value of an investment or amount of money at a…

Q: M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15.000 every 3…

A: r = 12%/4 = 3% t = 10 years*4 = 40 Quarterly payments = P15,000 Loan value = 1-1+r-tr×Quarterly…

Q: Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash…

A: Present value of future amount is computed by following formula:-PV = wherePV = Present value of…

Q: Anthony planned to buy a house but could afford to pay only $9,000 at the end of every 6 months for…

A: Here,Down Payment $   30,000.00Semi Annual Payment $     9,000.00Interest Rate5.70%Time Period in…

Q: Vanessa was supposed to make a payment of $3,500 in 2 years and another payment for $1,800 in 5…

A: Equivalent value today is the present value of both payments based on time and interest rate of…

Q: While buying a new car, Alexander made a down payment of $1,100 and agreed to make month-end…

A: Given data:Down payment = $1,100Monthly payment (PMT) = $290Interest rate (r) = 4% compounded…