Question

Please show work A person borrows $11,000 from the bank at a yearly interest rate of...

Please show work

A person borrows $11,000 from the bank at a yearly interest rate of 10% which is compounded monthly. The loan will be paid off in 2 years

1. What are the monthly payments?

2. If he decides to pay off the entire loan balance at the end of 17th month, what would be the total amount at that time?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A person purchases a house with a loan from a bank for a value $2,500,000 to...
A person purchases a house with a loan from a bank for a value $2,500,000 to be paid monthly (uniform series) during 5 years at a rate of 1.25% monthly interest. After making 12 monthly payments, this person decides to pay off the debt in one final payment in month 13. How much would he have to pay to the bank to finish off the debt?
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $16,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 4th year and he hands over the entire amount...
Paul takes a loan of $150,000 from the bank at 4% interest rate per year over...
Paul takes a loan of $150,000 from the bank at 4% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $10,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 5th year and he hands over the entire amount...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $16,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 4th year and he hands over the entire amount...
Ricky borrows X amount for 30 years at nominal rate of 12% compounded monthly from BANKFB....
Ricky borrows X amount for 30 years at nominal rate of 12% compounded monthly from BANKFB. If he pays the principal as equal monthly installments for 30 years and on top of this payment, he pays every month the interest on the outstanding balance. Immediate after 200th payment, the BANK FB sells the contract on the future payments to BANK SD at a price of 102,891.65. Find the value of the initial loan amount X.
A person decides to get a loan from the bank (today) to finance buying a piece...
A person decides to get a loan from the bank (today) to finance buying a piece of land. The borrowed amount is equal to $120,000. The arrangements with the bank state that the loan will be paid off in 96 equal monthly payments, based on an annual market/combined rate of 12% compounded monthly. a) Calculate the monthly payment considering the given market/combined rate. (10 points) b) If the monthly inflation rate is estimated to be 0.5%, calculate the value of...
A company borrows $52000 at 10.75% simple interest from State Bank to purchase equipment. State Bank...
A company borrows $52000 at 10.75% simple interest from State Bank to purchase equipment. State Bank requires the company to make monthly interest-only payments and pay the full $52000 at the end of 5 years. In order to meet the 5 year obligation of $52000,the company makes equal deposits at the end of each month into a sinking fund with Wolf Savings. The sinking fund earns 6.75% compounded monthly. Note: This problem is set to allow for an answer of...
Derek borrows $32,448.00 to buy a car. He will make monthly payments for 6 years. The...
Derek borrows $32,448.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 6.47%. After a 16.00 months Derek decides to pay off his car loan. How much must he give the bank?
Derek borrows $33,011.00 to buy a car. He will make monthly payments for 6 years. The...
Derek borrows $33,011.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.49%. After a 16.00 months, Derek decides to pay off his car loan. How much must he give the bank? Answer format: Currency: Round to: 2 decimal places.
a) "Clay borrowed $32,000 from a bank at an interest rate of 11.16% compounded monthly. The...
a) "Clay borrowed $32,000 from a bank at an interest rate of 11.16% compounded monthly. The loan will be repaid in 72 monthly installments over 6 years. Immediately after his 48th payment, Clay desires to pay the remainder of the loan in a single payment. Compute the total amount he must pay." b) "Suppose that $5,000 is placed in a bank account at the end of each quarter over the next 7 years. What is the future worth at the...