Tom will pay 10000 dollars to Monica 2 years from now. John wants to buy this debt from Monica. How much would John pay to Monica in order to buy this debt if the yearly interest rate in the market is 10% for the first year and 12% for the following year?

Q: Gage is suppose to receive a payment of $480.00 today from Mark. One month from today, Gage should…

A: Interest rate = 2.95% per annum Payment to be received today (P0) = $480 Payment to be received…

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Mary is buying a town house priced at $360,000.00. Mortgage A calls for her to make equal monthly…

A: Option b: This option is correct. Step 1:We have to calculate the monthly payments with the first…

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: Yao currently acquired a mortgage to buy a house in Leamington Spa. This mortgage is for a value of…

A: We can use this formula to find out equal annual payment of loan amount    A = P*[…

Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…

A: Future value: Future value is $97,435.86

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: Diego is getting a mortgage for $320,000 at a rate of 4.5% for 30 years. What is his monthly payment…

A: Monthly Payment is the payment that is to be paid monthly for a specific period of time to repay the…

Q: Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most…

A: Amount received for trade-in = $6,000  Monthly Payment, P = $500  Interest rate = 2.2%  Number of…

Q: selling their house. Offer #1 puts $8094 down and pays the lump sum $140010 in 3 months. Offer #2…

A: Simple interest is simple that means no interest on interest and there is no compounding of interest…

Q: Bill and Cathy will be retiring in fifteen years and would like to buy an Italian villa. The villa…

A: Time value of money states that a dollar is worth more today than sometimes later. This is because…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: Allison is considering paying $400 a year for an extended warranty on several of her major…

A: Rate of interest =2% Period =5 years  Payment =$400 per year  Future value FACTOR =(1+r)n/r Future…

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

Q: Jennifer buys a $300,000 house and pays $100,000 down. The loan is for 30 years and is at 4%…

A: Monthly payments is calculated by present value of annuity formula. r is interest rate and n is…

Q: Max the mouse decides that he needs a new place to put his giant cheese refrigerator. So, Max…

A: GIVEN, pv = $300,000 A= $25,000 r=4%

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: Derek decides to buy a new car. The dealership offers him a choice of paying $588.00 per month for 5…

A: A purchase can be made by paying in cash or paying in installments.

Q: Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not…

A: Simple discount refers to the method of calculation of the amount received and interest paid where…

Q: . Ji-Hoon wants to get a $500,000 3% 30-year mortgage in order to buy his first home. How much…

A: Loan amount (PV) = $500,000 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 30…

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: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Nick has just signed a 30-year, fixed-rate mortgage for $180,000 with a nominal annual rate of 7.6%.…

A: We need to use PMT and NPER function to calculate monthly payment and number of periods to pay off…

Q: How long would it take to pay off the loan if she chooses the biweekly payments option?

A: First we need to determine the loan amount using the formula below:In a normal mortgage, the…

Q: My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5%…

A: While taking a loan for any purpose one should evaluate the payment schedule where the requirement…

Q: Donna enters into an investment contract that will guarantee her 4% per year if she deposits $3,500…

A: The future value of the investments can be calculated using the FV Function in excel.FV = (RATE,…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Arthur is planning on buying a house and needs to take out mortgage for $200,000 . He has two…

A: A mortgage refers to a covered loan that is borrowed to purchase a property which in turn acts as…

Q: Jane agrees to buy a car for a down payment of $8000 and payments of $360 per month for 9 years. If…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%,…

A: The amortization is the systematic and regular repayment of loan and interest amount. Each payment…