Question

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

Answer #1

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

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 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 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 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, 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
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) 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 $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 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:

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