Question

To pay a loan of $5,000 at j12 = 9%, Clara agrees to make three payments...

To pay a loan of $5,000 at j12 = 9%, Clara agrees to make three payments in 4, 7 and 12 months, respectively. The second and third payments are to be double the first one. What is the size of the first payment?

part 2. Let r and d be equivalent rates of simple interest and simple discount, respectively. Show that d < r.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer.

First payment size=$1064.48

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To repay a loan of $50,000 at 12% p.a. Ms. Yee agrees to make two equal-sized...
To repay a loan of $50,000 at 12% p.a. Ms. Yee agrees to make two equal-sized payments in oneyear and two years’ time, respectively. What is the size of each payment?
a) You took out a one-year loan for $1000 and agreed to pay it in three...
a) You took out a one-year loan for $1000 and agreed to pay it in three equal installments, one payment at the end of 1 month, second payment at the end of 2 months, and the last payment at the end of the year. What is the size of each payment? Assume the interest rate is 9%. b) In part (a), suppose that you made three non-equal payments: the first was $500 at the end of 1 month, the second...
a loan of $15000 at 9% p.a. is to be settled in three instalments as follows:...
a loan of $15000 at 9% p.a. is to be settled in three instalments as follows: first payment of $5000 in three months and two equal payments, one in six months and the other in nine months. Calculate the size of each equal payments. Let the focal date be three months from now.
Jonathon takes out a cash loan of $12,000. He agrees to pay back the loan with...
Jonathon takes out a cash loan of $12,000. He agrees to pay back the loan with three payments as follows: $2,000 at the end of six months, ($2,000 + Y) at the end of 10 months and ($2,000 + 2Y) at the end of 18 months. What is the value of Y if a) r = 6% and you use 8 months as the focal date b) d = 6% and you use 14 months as the focal date c)  j4...
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage...
I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments. A.     Find the value of the mortgage on their house? (1 mark) B.     Find the value of the monthly payment? C.     Find the loan outstanding after making 20 payments? D.    Find the principal repaid in the 21st payment? II. Fill out the loan amortization schedule provided in the solution template for the first...
a)Paul was due to make loan payments of $1,870 7 months ago, $1,951 5 months ago,...
a)Paul was due to make loan payments of $1,870 7 months ago, $1,951 5 months ago, and $1,232 in 9 months. Instead, he is to make a single payment today. If money is worth 7.61%, what is the size of the replacement payment? ***(Final answer should be rounded to two decimal places.) b) After the COVID-19 pandemic was over, Malika decided to go on a vacation and borrowed $2,520. If interest was charged on the loan at 5.2%, how much...
On January 1, 2019 Panther Company received a two-year $600,000 loan. The loan calls for payments...
On January 1, 2019 Panther Company received a two-year $600,000 loan. The loan calls for payments to be made at the end of each year based on the prevailing market rate at January 1 of each year. The interest rate at January 1, 2019 was 10 percent. Panther company does not want to bear the risk that interest rates may increase in year two of the loan. Aegan company believes that rates ma decrease and they would prefer to have...
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an...
9. Calculating an installment loan payment using the add-on method Calculating the loan payment on an add-on interest installment loan Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single–payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on...
a. [3 pts] Consider the simple loan case. Suppose that the dealership allows you to pay...
a. [3 pts] Consider the simple loan case. Suppose that the dealership allows you to pay the car off in four installments of $5,000, with each installment due once a year. The first payment is due the day that you purchase the car; the remaining installments are then paid on the same date each consecutive year, for the remaining three years. What is the present discounted value of the payments you make for the car? b. [5 pts] Now suppose...
1) You just received a loan offer from Green Loans. The company is offering you $5,000...
1) You just received a loan offer from Green Loans. The company is offering you $5,000 at 5.3 percent interest. The monthly payment is only $100. If you accept this offer, how long will it take you to pay off the loan? A) 6.12 years B) 4.72 years C) 3.98 years D) 2.79 years E) 1.74 years 2) You will receive annual payments of $800 at the end of each year for 12 years. However, the first payment will be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT