Question

Assume you borrow $30,000 at an interest rate of 5.35 percent. The terms stipulate that the principal is due in full in 5 years and interest is to be paid annually at the end of each year. How much total interest will you pay on this loan assuming you pay as agreed?

Answer #1

On the day you enter college you borrow $12,000 from your local
bank. The terms of the loan include an interest rate of 5.45%. The
terms stipulate that the principle is due in full one year after
you graduate. Interest is to be paid annually at the end of each
year. Assume that you complete college in four years. How much will
you pay the bank one year after you graduate?
Question 12 options:
$12,000.00
$12,654.00
$2,806.27
$3,419.59
$15,646.39

ABC borrowed $236,000 at an annual interest rate of 11 percent.
The terms of the loan required ABC to make quarterly payments and
to completely amortize the loan over five years. Assuming ABC made
the payments as agreed, how much total interest did ABC pay over
the life of the loan? Please show all work.

Assume that today you borrow $25,000 from your local bank. The
stated interest rate is 10%, compounded annually. It will be a 5
year loan. You will pay back the loan at the end of each of the
next five years. Part A) What will be your annual payment be for
the next five years. Part B) How much of your first payment is
going toward interest? Part C) What is the outstanding principle
balance after you make the first...

You plan to borrow $47,400 at a 7.5% annual interest rate. The
terms require you to amortize the loan with 7 equal end-of-year
payments. How much interest would you be paying in Year
2? Support your answer by showing the first two years of
the amortization table for this loan:
Year
Beginning Balance
PMT
INT
PRIN
Ending Balance
1
2
Total

Assume that someone borrows $5,000 at an interest rate of 9
percent per year for five years and agrees to make interest and
principal payments in the amount of $1285.46 at the end of each
year. Prepare a loan amortization schedule for each of the five
years, showing the beginning principal balance, the total payment
of $1285.46, the interest component of the payment, the principal
component of the payment, and the ending balance. Fill in the blank
spaces in the...

2. Suppose you borrow $20,000 at an 18 percent simple interest
but must repay your loan in 12 equal monthly payments.
a. Find the APR for this loan.
b. What is the corresponding EAR?
3. Suppose you deposit $20,000 in a savings account. After 210
days, you withdraw your funds. If the bank paid you $340 in
interest for the 210-day period, what is your APY?
4. Suppose that the house of your dreams costs $1,200,000. You
manage to scrap...

Taylor Farms is borrowing $75,000 for three years at an APR of 9
percent. The loan calls for the principal balance to be reduced by
equal amounts over the life of the loan. Interest is to be paid in
full each year. The payments are to be made annually at the end of
each year. How much will Taylor Farms pay in interest over the life
of this loan?

You borrow $50,000 from a bank at the rate of 8 percent per
year. You are planning to pay off this loan in 5 years in equal
quarterly payments. How much would be each payment?

Problem I) Determine the monthly payment required if you want to
borrow $30,000 from a
bank to buy a car, at 6%/year nominal interest, for 6 years.
Problem 2) For the previous car loan, when you handed the bank
your check for the 24th
monthly payment, how much of that check was for interest, and
how much went toward
reducing what you owed on the car (principal reduction)?
Problem 3) How much total interest over the life of the loan...

Today you borrow $25,000 from your local bank. The stated
interest rate is 10%, compounded annually. It will be a 5 year
loan. You will pay back the loan at the end of each of the next
five years.
A) What will be your annual payment be for the next five years.
B) How much of your first payment is going toward interest?
C) What is the outstanding principle balance after you make the
first payment?
D) How much...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 9 minutes ago

asked 20 minutes ago

asked 21 minutes ago

asked 27 minutes ago

asked 35 minutes ago

asked 40 minutes ago

asked 40 minutes ago

asked 49 minutes ago

asked 49 minutes ago

asked 56 minutes ago

asked 1 hour ago

asked 1 hour ago