Kathy Crag, the owner of The Fabric Comer, lent $15,000 to Dani Flynn to open her...

Question

Question

business finance

Answer 1

Answer #1

Future Value = Present Value(1+r)^n

Present value =$15,000 (amount lent today)
r = 8% compounded quarterly= 2% quarterly rate.
n = number of periods= 12× 4 = 48 quaters.

Future Value = 15000(1.02)^48
=38,806.05

Amount to be repaid after 12 years with interest = $38,806.05. (Katty will receive).

Answer 2

Similar Homework Help Questions

Lynn Ally, owner of a local Subway shop, loaned $45,000 to Pete Hall to help him...

Lynn Ally, owner of a local Subway shop, loaned $45,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 6 years with 12% interest compounded semiannually. How much will Lynn receive at the end of 6 years? (Do not round intermediate calculations. Round your answer to the nearest cent.)
Anne Katz, the owner of Katz Sport Shop, loaned Shelley Slater $8,000 to help her open...

Anne Katz, the owner of Katz Sport Shop, loaned Shelley Slater $8,000 to help her open an art shop. Shelley plans to repay Anne at the end of eight years with interest compounded semiannually at 8%. At the end of eight years, Anne will receive Multiple Choice 0 $13,120 0 $14,484 0 0 $14.983.85 $13.120 $14,484 $14,983.85 $14.807.44
Lynn Ally, owner of a local Subway shop, loaned $46,000 to Pete Hall to help him...

Lynn Ally, owner of a local Subway shop, loaned $46,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 7 years with 4% interest compounded semiannually. How much will Lynn receive at the end of 7 years? (Do not round intermediate calculations. Round your answer to the nearest cent.) Future value

Lucy purchases a retirement annuity that will pay her $1,500 at the end of every six...

Lucy purchases a retirement annuity that will pay her $1,500 at the end of every six months for the first eight years and $700 at the end of every month for the next five years. The annuity earns interest at a rate of 3.9% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Lucy receive from the annuity? Round to the nearest cent
Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit...

Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
Kathy Woo, owner of Flower Paradise, operates a local chain of floral shops. Each shop has...

Kathy Woo, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Woo wants to set the delivery fee based on the distance driven to deliver the flowers. Woo wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months:...

3. a) b) Victoria invested her savings in a bank at 2.75% compounded monthly. How much...

3. a) b) Victoria invested her savings in a bank at 2.75% compounded monthly. How much money did she invest to enable withdrawals of $3,000 at the beginning of every 6 months from the investment for 8 years, if the first withdrawal is to be made in 12 years? Round to the nearest cent How much would a business have to invest in a fund to receive $13,000 at the end of every month for 5 years? The fund has...
12 What is the future worth of P600 deposited at the end of every month for...

12. What is the future worth of P600 deposited at the end of every month for 4 years if the interest rate is 12% compounded quarterly?Ans P36.64113. A young woman 22 years old, has just graduated from college. She accepts a good job and desires to establish her own retirement Fund Ar the end of each year thereafter she plans to deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an...
1. Shirley wants to go on a trip to Hawaii. She budgets that she can save...

1. Shirley wants to go on a trip to Hawaii. She budgets that she can save $108 at the end of every month, and interest in her account is 8% compounded biweekly. By looking at prices, she knows that the trip will cost her $4813 total. How long in years (round to two decimal places) will it take before she can go on her trip? 2. Joey buys a new Honda civic for $18997. He agrees to payments at the...

The management of Gibraltar Brokerage Services anticipates a capital expenditure of $20,000 in 3 yr for...

The management of Gibraltar Brokerage Services anticipates a capital expenditure of $20,000 in 3 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 10%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.) $ Need Help? Read it Tato Tuter 11. [-/0.1 Points) DETAILS...