Upon graduation from college, Warren Roberge was able to defer payment on his $39,000 student loan for 3 months.Since the interest will no longer be paid on his behalf, it will be added to the principal until payments begin. If theinterest is 2.39% compounded monthly, what will the principal amount be when he must begin repaying his loan?The principal amount will be s(Do not round until the final answer. Then round to the nearest cent as needed.)

A loan repayment has been deferred. In the deferral period, the interest will be added to the…

Answered: Upon graduation from college, Warren…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Larry Davis borrows $87,000 at 11 percent interest toward the purchase of a home. His mortgage is for 25 years. a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.) Annual payments b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Total interest
Donovan took a $46,000 loan at 3.78% compounded monthly and decided to make end of month payments of $1,413. 1) How many payments will Donovan have to make to amortize this loan? (rounded to the next higher whole number) 2) What will the size of his final payment be? (enter a positive value)
Question: Robert is repaying a debt with 19 annual end-of-the-year payments of $1,000 each. At the end of the 4th year, he makes an extra payment of $2,000. He then refinances his loan by reducing his remaining payment period by 2 years and making level payments over the remaining time. If the effective rate of interest is 7.1%, what is the amount of his new annual payment
To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4% annual interest. His monthly payment for this loan is $722.87. Fill in all the blanks in the amortization schedule for the loan. Assume 1 that each month is of a year. Round your answers to the nearest cent. 12 Interest Payment number Principal New loan payment payment balance 1 $162,477.18 130 $346.85 $376.02 $122,041.32 131
Theodora received an 8-year PLUS Loan of $17,000 to attend law school for her last 2 years. If the current interest rate is 5.32% and she starts her repayments 1 year after graduation, what are her monthly payments? (See Example 5 in this section. Assume the loan has a deferred payment plan. Round your answer to the nearest cent.)
Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to settle the loan six months earlier? The interest rate is 2.25% compounded monthly. Round to the nearest cent
Joey realizes that he has charged too much on his credit card and has racked up $5,400 in debt. If he can pay $125 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Time to pay off the debt months
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $
Jeffery Wei received a 7-year non-subsidized student loan of $32,000 at an annual interest rate of 5.2%. What are Jeffery's monthly loan payments for this loan after he graduates in 4 years? (Round your answer to the nearest cent.)
Joey realizes that he has charged too much on his credit card and has racked up $4,300 in debt. If he can pay $125 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.)
Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Cassandra makes an extra payment of $30,000 at the end of year 3? years and monthsm

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