to cost $40,000 and increased by 5% every yea
Q: You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your…
A: Given Loan amount is $100 Amount to be paid back is $200 Rate of return is 12%
Q: After graduation, you decide that you can pay $203.24 per month extra on your student loan (…
A: The objective of this question is to determine how many years early you will be able to pay off your…
Q: How much must you put away at the end of each year
A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…
Q: Upstate University charges $15,000 a year in graduate tuition. Tuition rates are growing at 3.5%…
A: Expected graduate tuition in 6 years = Current Charges * (1+growthrate)^no. of years Where, current…
Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…
A: Amount of home = $255,000 Down payment = 5% The time duration of the loan = 30 years
Q: You have a student loan of 40,000$ that you want to repay in 10 years. Interest rates are at 6% per…
A: Since an amount is paid annually over the loan period, it is a type of annuity. The present value of…
Q: how much would you have to deposite if you wanted to have $49000 in five years?annual interest rate…
A: The formula to calculate present value is as below:
Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…
A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…
Q: You plan to start grad school in 5 years (at the end of year 5) and will graduate 3 years after you…
A: There are two types of basic annuities, i.e., ordinary annuity and annuity due. An ordinary annuity…
Q: Assume the total cost of a university education will be $90,000 when your child enters university in…
A: Compound = Monthly = 12Future Value = fv = $90,000Time = t = 6 * 12 = 72Present Value = pv = $55,000
Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…
A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…
Q: You've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…
A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…
Q: Assume you graduate from university with a $24,000 student loan. If your interest rate is fixed at…
A: Families of students and students often take student loan. This is taken for the purpose of…
Q: 3. Need help with finance homework. Assume a discount rate of 6.75%. You are planning to receive…
A: Discount rate (r) = 0.0675 Period (n) = 6 Years First payment (C) = $12,000 Growth rate (g) = 0.022…
Q: Suppose that you borrow $20,000 for four years at 8% toward the purchase of a car. Find the monthly…
A: Given: Amount borrowed = $20,000 Number of years = 4 Interest rate = 8% Compounding frequency = 12
Q: have an outstanding student loan with required payments of 550 per month for the next four years.…
A:
Q: You have the alternative of paying for university fees today for a payment of $16,000 or, you can…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Future value. Upstate University charges $21,000 a year in graduate tuition. Tuition rates are…
A: Current tuition charges (P) = $21,000 Annual growth rate (g) = 2.5% Period (n) = 4 Years
Q: Suppose that you borrow $10,000 for four years at 8% toward the purchase of a car. Find the monthly…
A: The amortization schedule shows the periodic loan payment owed for each period, the amount of…
Q: You estimate that you will have $30,000 in student loans by the time you graduate. The interest rate…
A: Amount of the student loan =$30000The interest rate compounded monthly =5%Number of years of loan…
Q: Suppose you have a student loan of $50,000 with an APR of 6% for 30 years. a. What are your…
A: Here,Loan Amount is $50,000APR is 6%Time Period is 30 years
Q: You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…
A: Cost of home = $169,000Down payment = 20%Interest rate = 4.85%Number of years = 30 years
Q: University tuition and fees can be paid by using one of two plans. Early-bird: Pay total amount due…
A: Equivalent Amount refers to the amount which is proportionally equal to its own value at any…
Q: Assume you graduate from university with a $40,000 student loan. If your interest rate is fixed at…
A: The present value of monthly payments over a 20-year period should be equal to the amount of the…
Q: Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Comp parts (a) through…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…
A: The question is based on the concept of time value.
Q: What should the present value of a savings account be to cover $30,000 of college expenses in 12.5…
A: Compound = Quarterly = 4Future Value = fv = $30,000Time = t = 12.5 * 4 = 50Interest Rate = r = 7.5 /…
Q: Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a)…
A: We need to use loan amortisation formula to calculate monthly payment of loan. The formula is PMT…
Q: finish your engineering degree with $17,350 in student loans. The interest rate on your loans is…
A: Loans are paid the monthly payments and these monthly payments are equal and fixed and these carry…
Q: start saving in one year from now a fixed amount for 20 total deposits. Wha is the amount of that…
A: First we need to determine the PV of all 4 payments using the formula below:CFn = cash flow in year…
Q: What will your monthly payment be if you have a 5% interest rate and a term of 20 years? How much…
A: Given:Annual interest rate = 5%Loan term = 20 yearsYearly payment (PV) = $17,000
Q: What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to…
A: Since Future value = Present value ×(1+Periodic Interest rate)^n Where, N= Number of periods = 1…
Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…
A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…
Q: . What are the monthly loan payments? Enter your response below.
A: The monthly payment on a loan is the set amount that is recurrently paid to the lender over the…
Q: Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years…
A: Non-Subsidized Student Loan per year = $11,000 Time Period of Non-Subsidized Student Loan = 4 Years…
Q: ou will have $56,500 in student loans by the time you graduate. The interest rate is 4.5 percent. If…
A: Loans are paid by the equal monthly installments and these are paid by equal monthly payments and…
How much money would you need at the present to pay for 4 years of college tuition if the first year was anticipated to cost $40,000 and increased by 5% every year. Assume an interest rate of 8%.
Step by step
Solved in 2 steps with 2 images
