Question

Suppose you have a loan of amount P, and you plan to pay off the debt...

Suppose you have a loan of amount P, and you plan to pay off the debt in 10 equal annual installments. Suppose the annual compounding rate is r. Suppose you have paid six installments and you want to pay off the rest at the time the 7th installment is due. How much do you need to pay at that time? (Express your answer in terms of the variables in the problem P and r and simplify your answer.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Suppose that under the Plan of Repayment one should pay off the debt in a number...
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal​ end-of-month installments​ (principal and​ interest). This is the customary way to pay off loans on​ automobiles, house​ mortgages, etc. A friend of yours has financed ​$23 comma 000 on the purchase of a new​ automobile, and the annual interest rate is 24​% ​(2​% per​ month). a. Monthly payments over a 48​-month loan period will be how​ much? b. How much interest and...
Suppose that under the Plan of Repayment one should pay off the debt in a number...
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal​ end-of-month installments​(principal and​ interest). This is the customary way to pay off loans on​ automobiles, house​ mortgages, etc. A friend of yours has financed ​$20,000 on the purchase of a new​ automobile, and the annual interest rate is 12% (1% per​ month). a. Monthly payments over a 36​-month loan period will be how​ much? b. How much interest and principal will be...
Suppose that under the Plan of Repayment one should pay off the debt in a number...
Suppose that under the Plan of Repayment one should pay off the debt in a number of equal​ end-of-month installments​ (principal and​ interest). This is the customary way to pay off loans on​ automobiles, house​ mortgages, etc. A friend of yours has financed ​$29,000 on the purchase of a new​ automobile, and the annual interest rate is 6​% (0.50% per​ month). a. Monthly payments over a 60​-month loan period will be how​ much? b. How much interest and principal will...
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...
You want to buy a $203,000 home. You plan to pay 15% as a down payment,...
You want to buy a $203,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 4.3% annual interest compounded monthly for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment...
How many years will it take you to pay off a loan of $59970 if you...
How many years will it take you to pay off a loan of $59970 if you make semiannually payments of $6580 and the bank is charging you 14% annually? (Express your answer to two decimal places.)
you have a credit card debt of $5,000. How much should you pay each month to...
you have a credit card debt of $5,000. How much should you pay each month to pay off if your credit card carries an interest rate of 20.05% and you want to pay off the debt with equal monthly payments in two years and six months? A. $129.73 B. $210.56 C. $213.27 D. None of above
You want to buy a $233,000 home. You plan to pay 5% as a down payment,...
You want to buy a $233,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if the annual interest rate is 6%? $ c) What will your monthly payments be if the annual interest rate is 7%? $
You want to buy a $183,000 home. You plan to pay 15% as a down payment,...
You want to buy a $183,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if the annual interest rate is 6%? $ c) What will your monthly payments be if the annual interest rate is 7%? $
You borrow $70,000 and arrange to pay off the loan in five equal annual installments. Payments...
You borrow $70,000 and arrange to pay off the loan in five equal annual installments. Payments will be made at the end of each year. The loan interest rate is 7.50 percent. What percentage of your second year's payment will go toward interest? A. 19.5 percent B. 17.2 percent C. 80.5 percent D. 28.7 percent E. 25.1 percent
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT