Trent borrowed $30,000, which he will repay with quarterly payments of $2100, and a final, smaller...

Trent borrowed $30,000, which he will repay with quarterly payments of $2100, and a final, smaller payment. The interest rate on the loan is 6.2% compounded monthly. How much interest will Trent pay altogether during the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places.) Total interest $

Solutions

Expert Solution

Ans:

Total Interest payment will be $4210.80. Working is attached in excel sheet. One sheet for values and other for formulas learning.

For any query please ask in comment box, we are happy to help you. Also please don't forget to provide your valuable feedback. Thanks!

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Celeste just borrowed 47,700 dollars. She plans to repay this loan by making equal quarterly payments...

Celeste just borrowed 47,700 dollars. She plans to repay this loan by making equal quarterly payments of 2,271.5 dollars for 27 quarters. If she makes her first quarterly payment later today, then what is the quarterly interest rate on the loan? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Sam takes out a bank loan for $12750 that he will repay with 16 quarterly payments...

Sam takes out a bank loan for $12750 that he will repay with 16 quarterly payments at j1 = 6%. Sam has some financial troubles come up and is unable to pay the 7th and 8th payments. The bank allows Sam to skip these payments and then immediately after the 8th payment the loan is refinanced at j1 = 7%. What is the new quarterly payment?

Sanam has bought a property for $120,000 down payment and quarterly payments of $2100 at the...

Sanam has bought a property for $120,000 down payment and quarterly payments of $2100 at the end of every quarter for 15 years. Find the purchase price of her property if interest rate is 4% p.a. compounding quarterly.

If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five...

If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay? please i want the result step by step by hand not using excel! thanks in advance

You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of...

You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of 4000, with the ﬁrst payment occurring one year from today. What annual interest rate are you paying?

Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments...

Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?

On 31 October 2013, Josh borrowed money from his parents. He promised that he would repay...

On 31 October 2013, Josh borrowed money from his parents. He promised that he would repay the money on 31 October 2017, with interest at a nominal interest rate of 7% p.a., compounding quarterly. The total amount that he was due to pay his parents at that time was exactly $10,000 but he started his studies at university so he couldn’t afford to repay the loan. If interest continues to accrue, what amount must Josh pay on 31 October 2022...

Suppose you borrowed $32,000 for 4 years with quarterly payments at an APR of 6%. What...

Suppose you borrowed $32,000 for 4 years with quarterly payments at an APR of 6%. What is the quarterly payment? (ordinary annuity) PLEASE SHOW WORK USING FORMULAS *NOT through excel or financial calulator Amortize the first four payments. Use the table below: (Payment number) (Payment) (Interest) (Prinicipal) (Remaining Balance) 1 _______ _______ _______ ________ 2 _______ _______ ________ ________ 3 _______ _______ _______ _________ 4 _______ ________ _______ __________ How much in interest will you pay over the life of...

You borrowed $700 at 5% compounded quarterly. Your payments are $150 at the end of each...

You borrowed $700 at 5% compounded quarterly. Your payments are $150 at the end of each year. How many years will you make payments on the loan? (Hint: compounding frequency is different from payment frequency; we know that r and t should be matched; compounding effect? Effective interest rate?)

Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over...

Tedros borrowed $2 million and planned to repay the loan by making equal month-end payments over a period of 10 years. The interest rate on the loan is 6%, compounded monthly. (a) Calculate the amount of monthly payment. (b) Of the 60th payment, how much will be used to repay the interest and principal for the month? (c) Tedros plans to pay off the loan immediately after making the 60th payment. What should the size of the lump-sum (pre-)payment be?...

Subjects