Question

Mohammad borrows $3,500 from the bank at 15 percent annually compounded interest to be repaid in...

Mohammad borrows $3,500 from the bank at 15 percent annually compounded interest to be repaid in four equal annual installments. The interest paid in the Third year is?

Select one:

a. $276.91

b. $233.69

c. $298.95

d. $255.16

Business   Finance   
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
Mohammad borrows $3,500 from the bank at 15 percent annually compounded interest to be repaid in...
Mohammad borrows $3,500 from the bank at 15 percent annually compounded interest to be repaid in four equal annual installments. The interest paid in the Third year is? Select one: a. $298.95 b. $233.69 c. $255.16 d. $276.91
Danny Joe borrows $24,000 from the bank at 6 percent annually compounded interest to be repaid...
Danny Joe borrows $24,000 from the bank at 6 percent annually compounded interest to be repaid in four equal annual installments. For one of the above loans, make an amortization table for the entire period, which has the following columns: Year Beg. Bal. Payment Interest Part Principal Part End. Bal. please show steps
Big Brothers, Inc. borrows $242,894 from the bank at 15.15 percent per year, compounded annually, to...
Big Brothers, Inc. borrows $242,894 from the bank at 15.15 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 9 years. How much will each annual payment be?
Big Brothers, Inc. borrows $333,793 from the bank at 17.87 percent per year, compounded annually, to...
Big Brothers, Inc. borrows $333,793 from the bank at 17.87 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal installments at the end of each year over the next 5 years. How much will each annual payment be? Round the answer to the two decimal places.
You have just arranged for an eight-year bank loan for $350,000 at an interest rate of...
You have just arranged for an eight-year bank loan for $350,000 at an interest rate of 12% p.a. with interest compounded semi-annually. The loan will be repaid in 16 equal semi-annual installments and the first payment will be due six months from today. Assuming end-of-theperiod cash flows, the interest paid in period 2 will be closest to: a) $13,633. b) $14,451. c) $20,182. d) $21,000.
Bank A pays 4 percent interest, compounded annually, on deposits, while Bank B pays 3.9 percent,...
Bank A pays 4 percent interest, compounded annually, on deposits, while Bank B pays 3.9 percent, compounded daily. What is the effective rate offered by Bank A? By Bank B? Which bank should you use?
Two local banking institutions offer the following interest on deposits: Blue Bank: 3% annual compounded semi-annually...
Two local banking institutions offer the following interest on deposits: Blue Bank: 3% annual compounded semi-annually Red Bank: 2.95% per year compounded monthly Determine which of the following items is not true: Select one: a. The Red Bank offers better interest because it calculates the interest monthly so it accumulates more frequently and is therefore more attractive. b. The APY (Annual Percentage Yield) of the Blue Bank is 3,022% per year. c. The effective interest rate of the Red Bank...
If the quoted interest rate on a mortgage loan is 7.5% per year CSA (compounded semi-annually)...
If the quoted interest rate on a mortgage loan is 7.5% per year CSA (compounded semi-annually) and the mortgage is to be repaid by way of equal monthly instalments, what is the appropriate period rate for one month? Select one: a. About .5229% b. About .8000% c. About .6155% d. About 1.000% e. None of the above
A debt of $14,300 with interest at 8 % compounded semi-annually is repaid by payments of...
A debt of $14,300 with interest at 8 % compounded semi-annually is repaid by payments of $2,100 made at the end of every 3 months. Construct an amortization schedule showing the total paid and the total cost of the debt. Complete the amortization schedule. (Round to the nearest cent as needed.) Payment Number Amount Paid Interest Paid Principal Repaid Outstanding Principal Balance 0 $14,300 1 $2,100 $ $ $
You borrowed $20,000 from a bank at an interest rate of 12%, compounded monthly. This loan...
You borrowed $20,000 from a bank at an interest rate of 12%, compounded monthly. This loan will be repaid in 60 equal monthly installments over 5 years. Immediately after your 30th payment if you want to pay the remainder of the loan in a single payment, the amount is close to:
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT