Question

On 1 January 2012, Vivian borrowed money from his parents. He promised that he would repay...

On 1 January 2012, Vivian borrowed money from his parents. He promised that he would repay the money with interests at 12% p.a. on 1 January 2018. The total amount that he was due to pay to his parents at that time was exactly $10,000 but he started his studies at university so he couldn’t afford to repay the loan. If interest continues to accrue, what amount must Vivian pay on 1 January 2022 to fully pay off the loan? Select one: a. $15,735.19 b. $31,058.48 c. $32,125.68 d. $18,012.30

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:-

To Calculate the Amount that Vivan Must Pay on 1 Jan 2022 to fully Pay off the loan-

Future Value = Present Value *

Future Value = $10,000 *

Future Value = $10,000 * 1.573519

Future Value = $15,735.19

The Amount that Vivan Must Pay on 1 Jan 2022 to fully Pay off the loan is $15,735.19

The Correct Answer is point A i.e. $15,735.19

If you have any query related to question then feel free to ask me in a comment.Thanks. Please rate.

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
A) Justin finished paying his parents back the $30,400 he borrowed on September 17, 2012. they...
A) Justin finished paying his parents back the $30,400 he borrowed on September 17, 2012. they had agreed upon an interest rate of 3.20% and that he would make payments every month. how large were his payments? B) abby's retirement account has $112,500 and it earned 5.2%. how many years ago did she open the account if she's been investing $554 every month since then? C) Olivia intends to retire on september 17, 2042. Olivia is committed to set aside...
A man has borrowed $10,000 which he will repay in 60 equal monthly installments. After his...
A man has borrowed $10,000 which he will repay in 60 equal monthly installments. After his twenty-fifth payment he desires to pay the remainder of the loan at the time of the 26th payment in a single payment. At an interest rate of 2% per month what is the amount of the payment?
Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making...
Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded monthly. (Please use financial BAII calculator method by showing calculator inputs) (a) What is the size of the monthly payments? (b) How much will the loan cost him? (c) How much will Angelo owe after 18 months? (d) How much interest will he pay in his 36th payment? (e) How much of the principal...
Don graduated from a prestigious east coast university in May 2012. His parents could not pay...
Don graduated from a prestigious east coast university in May 2012. His parents could not pay for all his college education and so borrowed $75,000 in student loans. After graduation, Don landed a great job with the accounting firm of Dewey, Cheatham and Howe. They started him off with a six-figure salary. Don enjoys his new job and enjoys his newfound credit rating even more. Don wants to reduce his carbon footprint but not at the risk of style, so...
1. Alberto purchased a diamond ring for his girlfriend today. He will pay $320 (interest and...
1. Alberto purchased a diamond ring for his girlfriend today. He will pay $320 (interest and principal) at the end of each year for the next 8 years. Assuming that the store is charging Alberto 6% interest, what was the purchase price of the gift? (Round your answer to the nearest dollar) 2.Georgia deposited money in her retirement account 11 years ago. Today her account has $8600 in it. Assuming a 4% interest rate. how much did Georgia deposit 11...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company and dissolved the old one. The balances of the accounts (with the exception of fixed assets and uncollectible) were transferred over from the old business. Mr. Burns decided that he needed to invest more money into the business in order to get operational. Mr. Burns invested $2,120,000 to create stock. 2. January 3: Mr. Burns bought a cookie making machine for $500,000 from Cookie...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
SELECT ONLY ONE SCENARIO OF THE GIVEN 3. Scenario 1 - Liability on Negotiable Instruments Porter...
SELECT ONLY ONE SCENARIO OF THE GIVEN 3. Scenario 1 - Liability on Negotiable Instruments Porter Cable hired a bookkeeper, Gerald Smith, and gave him general authority to issue company checks drawn on First Bank so Smith could pay employees’ wages and other company bills. Smith decided to cheat his employers out of $9,500 by issuing a check payable to Timkin Bearings, one of the suppliers of bearings. Smith does not intend for Timkin to receive any of the money,...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING:...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING: a. Voting/Proxy Rights b. Right to Dividends c. Residual Right d. Pre-emptive Right e. Right to Interest Payments 10 points    QUESTION 2 Your best friend's parents want to buy a home in the Worcester County, but they don’t know the exact amount of money that they can afford to borrow. They can afford monthly payments of $ 1,800. A friendly bank in Worcester...
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT