Question

On March 2, 2020, Bob borrows $4025.00 with 12.25% compounded monthly. If simple interest is used for part of an interest conversion period, how much is required to settle the debt on July 27, 2025?

Answer #1

Amount Required | PV*(1+r)^n | ||

Here | |||

1 | Interest rate p.a. | 12.25% | |

2 | No. of years | 5.41 | |

3 | Number of compoundings per year | 12 | |

1/3 | Interest rate per month ® | 1.02% | |

2*3 | No. of Months (n) | 64.92 | |

Present Value (PV) | 4025 | ||

Amount
Required |
7,784.75 |
||

4025*(1+1.02%)^65 |
|||

Note: |
|||

02-03-20 | 27-07-25 | 1973 | 5.41 |

On March 2, 2020, Bob borrows $1325.00 with 11.25% compounded
monthly. If simple interest is used for part of an interest
conversion period, how much is required to settle the debt on July
29, 2024? $

a) A person borrows $6650.00 with interest at 15.5% compounded
quarterly for 4 years 7 months. If simple interest is used for part
of an interest conversion period, how much is required to pay off
the debt at the end of 4 years 7 months?
b)A person invests $7500.00 at 6.75% compounded semiannually on
October 1, 2018. If simple interest is allowed for part of an
interest conversion period, how much is the investment worth June
1, 2022?
c) On...

A person borrows $550.00 with interest at 12.5% compounded
quarterly for 4 years 7 months. If simple interest is used for part
of an interest conversion period, how much is required to pay off
the debt at the end of 4 years 7 months? $

A man borrows $120,000 to buy a home. The interest rate is 4.1%,
compounded monthly, and the loan period is 30 years. a) What will
be the monthly payment (360 equal payments) for the life of the
loan? b) What will be the effective annual interest rate, ieff ? c)
How much of the first payment will be interest? d) How much of the
fiftieth (50th) payment will be interest? [Try not to put problem
on a spreadsheet to find...

Henry Fowler borrowed $91,380 on March 1, 2015. This amount plus
accrued interest at 6% compounded semiannually is to be repaid
March 1, 2025. To retire this debt, Henry plans to contribute to a
debt retirement fund five equal amounts starting on March 1, 2020,
and for the next 4 years. The fund is expected to earn 5% per
annum. Click here to view factor tables How much must be
contributed each year by Henry Fowler to provide a fund...

Steve Fowler borrowed $97,230 on March 1, 2015. This amount plus
accrued interest at 10% compounded semiannually is to be repaid
March 1, 2025. To retire this debt, Steve plans to contribute to a
debt retirement fund five equal amounts starting on March 1, 2020,
and for the next 4 years. The fund is expected to earn 9% per
annum.
How much must be contributed each year by Steve Fowler to
provide a fund sufficient to retire the debt on...

A loan of $7,000 is taken out today, March 9, 2017.
What amount will pay off the debt on July 21, 2017 if the interest
rate is 5.1%:
compounded continuously? Use exact time and exact
interest.
compounded monthly and simple interest is paid for part
of a period. Use Banker’s Rule for the simple
interest.

Steve Milner borrowed $120,000 on July 1, 2020. This amount plus
accrued interest at 8% compounded semiannually is to be repaid in
total on July 1, 2030. To retire this debt, Milner plans to
contribute to a debt retirement fund five equal amounts starting on
July 1, 2025 and continuing for the next four years. The fund is
expected to earn 6% per annum.

3) A friend borrows $4000 from you, agreeing to pay 4.55% simple
interest. The loan plus interest is to be paid back after 30
months. When the loan is repaid how much will be the interest
portion of the repayment? What will the total repayment be,
including interest and the principal?
4) You invested $10,000 In a CD that offers 4 1/4% rate
compounded monthly. How much will you have in a CD after 6 years
and 3 months? What...

Exercise 6-16
Morgan Fowler borrowed $91,860 on March 1, 2015. This amount
plus accrued interest at 6% compounded semiannually is to be repaid
March 1, 2025. To retire this debt, Morgan plans to contribute to a
debt retirement fund five equal amounts starting on March 1, 2020,
and for the next 4 years. The fund is expected to earn 5% per
annum.
Click here to view factor tables
How much must be contributed each year by Morgan Fowler to provide...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 24 minutes ago

asked 24 minutes ago

asked 27 minutes ago

asked 27 minutes ago

asked 27 minutes ago

asked 28 minutes ago

asked 31 minutes ago

asked 40 minutes ago

asked 44 minutes ago

asked 50 minutes ago

asked 56 minutes ago

asked 59 minutes ago