Question
In: Economics
JOHN BORROWS $14000 FROM THE SAVINGS AND LOAN AT A COMPOUND INTEREST RATE OF 5%/YR. HE...
JOHN BORROWS $14000 FROM THE SAVINGS AND LOAN AT A COMPOUND INTEREST RATE OF 5%/YR. HE WILL PAY BACK THE LOAN IN EQUAL ANNUAL PAYMENTS OVER A 4- YEAR PERIOD. BERTHA BORROWS $10,000 FROM SETH, WHO IS JOHN’S BROTHER.
-DETERMINE THE EQUAL ANNUAL PAYMENTS
- SUMMARIZE JOHN’S FINANCIAL POSITION IN BULLET OUTLINE FORMAT
- BORROWS: $14000
-
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
John borrows $30,000 to buy a new car from a local bank with 0.55% interest rate...
John borrows $30,000 to buy a new car from a local bank with
0.55% interest rate per month (you don’t need to do any rate
conversion). He agrees to pay off the loan in 36 equal end-of-month
payments. The first payment will be made at the end of this
month.
a. What should be the monthly payment? Report the answer with 2
numbers after decimal place
b. Create an amortization table showing his payment, interest
payment, principal payment and loan...
Ian Borrows $5,600 at rate of interest i(2)=5.55%. He repays the loan by making N payments...
Ian Borrows $5,600 at
rate of interest i(2)=5.55%. He repays the loan by making
N payments of $350 at the end of each half-year plus a
final larger payment of X at the end of N+1
half-years.
Find X (nearest cent)
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan...
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The
annual interest rate on the loan is 8.25 percent, and the term of
the loan is 15 years.
Suppose Ron refinances the loan at the end of month 48 at the
then prevailing interest rate of 8%. Rather than reducing his
monthly payment, however, Ron decides to continue making the same
monthly payments. How many months must Ron continue to make the
payments on this new loan? (Round your answer...
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan...
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The
annual interest rate on the loan is 8.25 percent, and the term of
the loan is 15 years.
How much principal will Ron pay in month 37?
Enter your answer rounded to the nearest penny with no
punctuation, but do not use the rounded intermediate results in
future calculations involving Ron's Loan (keep all available
decimals).
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan...
Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The
annual interest rate on the loan is 8.25 percent, and the term of
the loan is 15 years. The loan requires the borrower to pay
two discount points at the time of origination.
A) What is the monthly payment necessary to
amortize this loan?
B) What is the balance on the loan at the end
of month 36?
C) How much interest will Ron pay in month
37?
D) How...
Andrew borrows $2,500,000 to purchase a warehouse. The annual interest rate on the loan is 7.25%, and...
Andrew borrows $2,500,000 to purchase a
warehouse. The annual interest rate on the loan is
7.25%, and the term of the loan is 15 years. Answer the
following questions about this loan:
What is the monthly payment necessary to amortize this
loan?
What is the balance on the loan at the end of month 36?
How much interest will Andrew pay in month 37?
How much principal will Andrew pay in month 37?
How much principal will Andrew pay in the fourth...
On January 1, Matthew borrows $6300 with a fixed interest rate on the loan of 10%...
On January 1, Matthew borrows $6300 with a fixed interest rate
on the loan of 10% and a loan term of 2 years. He will be making
monthly payments of $290.71. How much of Matthew’s fifth loan
payment would be interest charged?(Round answers to 2
decimal places, e.g. 52.75.)
$44.46
$42.41
$46.49
$48.51
On January 1, Steven borrows $5700 with a fixed interest rate on
the loan of 10% and a loan term of 2 years. He will be making...
A person borrows $100,000 at a simple interest rate r = 24%. He is to repay...
A person borrows $100,000 at a simple interest rate r =
24%. He is to repay the loan with 2 payments, one at the end of 2
months and the other at the end of 6 months. The first
payment is the same as the 2nd payment. Determine the
size of the payments, using the end of 6 months as the focal
date.
1. An entrepreneur borrows $275,000 today. The interest rate is 8%. Finally, the loan needs to...
1. An entrepreneur borrows $275,000 today. The interest rate is
8%. Finally, the loan needs to be paid off in equal annual
installments over the next 12 years, starting one year from today.
How much will the entrepreneur have to pay each year?
a. 22917
b. 22000
c. 36491
d. 44917
2. Suppose that you just turned 30 and that you would like $6
million at age 70 to fund your retirement. You would like to save
each year an...
Roberto borrows $10,000 and repays the loan with three equal annual payments. The interest rate for...
Roberto borrows $10,000 and repays the loan with three equal
annual payments. The interest rate for the first year of the loan
is 4% compounded annually; for the second year of the loan the
interest rate is 5% compounded annually; for the third year of the
loan the interest rate is 6% compounded annually.
a. Determine the size of the equal annual payments.
b. Would interchanging the interest rates for first year and third
year change the answer to part...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
ADVERTISEMENT