Question

This is Actuarial Science. Please answer asap! Susan repays a loan of $4800 by making equal...

This is Actuarial Science. Please answer asap!

Susan repays a loan of $4800 by making equal annual amounts of principal at the end of each year for 12 years plus interest on the outstanding balance at an annual effective rate of 6%.

Compute the total amount of interest paid during the term of this loan. ΣIt=

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

first, we need to find the annual payment

L=4800

r=6% = 0.06

n=1 for annual payment

t=12 years

......................annual payment

.

.

total interest is given by

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
Problem 1 - Amortizing a Loan Jason takes out a loan L of 3000 dollars to...
Problem 1 - Amortizing a Loan Jason takes out a loan L of 3000 dollars to buy a car at an annual effective rate of interest of 6%. He repays the loan by making annual payments at the end of each year for 10 years. a) The amount of Jason's annual payment is R=______ b) The amount of interest Jason paid in the 1st payment is I1=iL_________ c) The amount of principal repaid in the 1st payment is P1=R−I1_______ d)...
Brown is repaying a $1,000 loan with 5 equal payments of principal at the end of...
Brown is repaying a $1,000 loan with 5 equal payments of principal at the end of each year. Interest at an annual effective rate of 10% is paid on the outstanding balance each year. The first installment is due one year from today. Immediately after the loan was made, the loan was sold to an investor. Find the price the investor paid to earn an annual effective rate of 5%. The answer is 1134.105, but I'm not sure how to...
please answer all questions!!! 1. A loan may be repaid using the following two options of...
please answer all questions!!! 1. A loan may be repaid using the following two options of payments: i) Payments of 2,000 at the end of each year for eighteen years ii) Payments of 2,500 at the end of each year for nine years. Which of the following is closest to the effective annual interest rate being paid on the loan? A. 14% B. 17%. C. 20%. D.23%. E. 26% 2. A loan is being repaid by payments of 1100 at...
Susan takes a loan of $50,000 from Baroda bank. The rate of interest is 10% per...
Susan takes a loan of $50,000 from Baroda bank. The rate of interest is 10% per annum. The first instalment will be paid at the end of year 5. Determine the amount of equal annual instalments if Mr. X wishes to repay the amount in five instalments
A loan is repaid in 12 equal annual installments, beginning in 1 year. The effective annual...
A loan is repaid in 12 equal annual installments, beginning in 1 year. The effective annual interest rate is 3.5%. The total amount of principal repaid in the 9th through 12th payments is $9,503. What is the amount of interest paid in the 4th payment? Possible answers are: 725 or 690 or 755 or 395 or 740. Thanks
a. Complete an amortization schedule for a $28,000 loan to be repaid in equal installments at...
a. Complete an amortization schedule for a $28,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $   $   $   $   $   2 $   $   $   $   $   3 $   $   $   $   $   b. What percentage of the payment represents interest and what percentage represents principal...
a. Complete an amortization schedule for a $13,000 loan to be repaid in equal installments at...
a. Complete an amortization schedule for a $13,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $   $   $   $   $   2 $   $   $   $   $   3 $   $   $   $   $   b. What percentage of the payment represents interest and what percentage represents principal...
Construct an amortization schedule for a $20,000, 3.45% annual rate loan with 3 equal payments.  Please complete...
Construct an amortization schedule for a $20,000, 3.45% annual rate loan with 3 equal payments.  Please complete the schedule below as you see fit. Year          Beg. Balance        Payment           Interest             Principal           End Balance
A 30-year $115000 loan has a level amortization payments at the end of each year. The...
A 30-year $115000 loan has a level amortization payments at the end of each year. The effective annual interest rate is 3.75%. Let P be the ratio of total interest paid and total payments made during the life of the loan. (a) Find P. (b) At the end of year n, the outstanding balance is less than half of the loan amount for the first time. Find n. Please do the problem without Excel.
Complete an amortization schedule for a $25,000 loan to be repaid in equal installments at the...
Complete an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 11% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $   $   $   $   $   2 $   $   $   $   $   3 $   $   $   $   $   b. What percentage of the payment represents interest and what percentage represents principal for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT