Question

A) zach owes $36,700 because he's been borrowing $299 from his parents every month since September 17, 2012. what interest rate did they agree to?

B) Emma just finished paying back her parents what she borrowed on September 17, 2014. they agreed upon an interest rate of %3.2 and that she would make $95 payments every week. how large was the loan?

C) Hannah intends to retire on september 17, 2040 and expects her interest to earn %10. how much did she set aside every month to reach $741,100?

D) katy intends to set aside $1,225 every quarter to reach $29,200 for retirement. how many years will she need to invest for retirement if she can earn %8.8 interest?

E) Chris is borrowing $17,200 from his parents at an interest rate of 3.2%. if he makes the final payment on September 17, 2027, how much will he repay every quarter?

Answer 1

A)
FV = $36,700
PMT = $299
Nper = (2020 - 2012) * 12 = 96
PV = 0

Interest rate can be calculated by using the following excel formula:
=RATE(nper,pmt,pv,fv)
=RATE(96,299,0,-36700)*12
= 5.98%

Interest rate = 5.98%

B)
PMT = $95
Rate = 3.2% / 52
Nper = (2020 - 2014) * 52 = 312
FV = 0

Loan amount can be calculated by using the following excel formula:
=PV(rate,nper,pmt,fv)
=PV(3.2%/52,312,-95,0)
= $26,960.73

Loan amount = $26,960.73

Note: Post the rest of the questions separately.