HomeworkLib
Question

4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay this debt he is to pay an amount of X for the next 7 years and an amount of 2X for the following 15 years. All payments are made at the end of the year. The annual interest rate is 12%. Calculate X.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins as Cut Σ AutoSum ー E ゴWrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard GC100 FS Font Alignment Number Styles Cells Edting FT FU FV FW FY FZ GA GB GD GE 94 95 96 97 98 IT IS A MIX CASE OF PRESENT VALUE OF ANNUITY AND PRESENT VALUE TABLE 235000-(X) PVI FA @ 12% FOR 7 YEARS + (2x)*(PVIFA@ 12% FOR 15 YEARS)( PVIF@ 12%, 7 YEARS) 235000X)4.564 (2X) 6.811*0.452 2350004.564 (X) 6.157144(X) 235000 10.721144(X) 235000/10.721144 100 101 102 103 104 105 106 107 108 109 110 21919.30 NOTEALL VALUES ARE TAKEN FROM TABLES 3 DECIMALS ARE TAKEN EXCEL IF WE USE EXCEL, TAKE FULL VALUES, NO ROUNDING IS DONE ANSWER WILL BE DIFFERENT 235000X)4.563757(2X)*6.810864*0.452349 235000 10.725535(X) NOTE PVIFA 1296,7 YEARS PVI FA 12%, 15 YEARS = PVIF 12%, 7 YEARS= EXCEL 21910.33 4.563757 PV(1296,7,-1) 6.810864 PV(12%,15-1) 0.452 349 PV(12%,7,-1) 112 CALCULATOR | LOAN OPTIONS CAP STRU VALUE LOCK BOXDILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2She 05:58

0 0
Add a comment
Know the answer?
Add Answer to:
4. Mr. Jones is in debt. He owes Mr. James an amount of $235,000. To repay...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Mr. G obtains a $70,000 loan today. He will repay the bank with equal payments to...

    Mr. G obtains a $70,000 loan today. He will repay the bank with equal payments to be made at the end of each 6-month period, or twice each year, for 6 years. If the interest rate the bank charges is an 8% annual percentage rate, what amount of money will each payment be? (Note that payments and compounding occur semi-annually, not annually, in this example.) Hint: use the Basic Time Value of Money table attached to this quiz or a...

  • a student takes an education loan from a bank. He expects to borrow $40,000 a year...

    a student takes an education loan from a bank. He expects to borrow $40,000 a year for the next 4 years (the first amount is drawn immediately, on 2/28/2010). The annual interest rate being charged is 8%; for the first several years, the interest is not paid, but it is added to the loan at the end of each year. He is required to repay the loan in equal annual payments starting 7 years from the date of the loan...

  • Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he...

    Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he will make $100 payments at the beginning of each month for the next two-and-a-half years. He will then pay nothing for the next two years. Finally, after four-and-a-half years, he will make $200 payments at the beginning of each month for one year, which will pay off his debt completely. For the first four-and-a-half years, the interest on the debt is 9% compounded monthly....

  • Sunland, Inc. owes $37,310 to Criitter Company. How much would Sunland have to pay each year...

    Sunland, Inc. owes $37,310 to Criitter Company. How much would Sunland have to pay each year if the debt is retired through four equal payments (made at the end of the year), given an interest rate on the debt of 9%? Amount paid each year Answer . (round to whole dollars) You are interested in purchasing a Honda Acura. The salesperson indicated that the price of the car was either $26,000 cash or $6,500 at the end of each of...

  • Please show the work, thanks! 8. Herman has agreed to repay a debt by using the...

    Please show the work, thanks! 8. Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he will make $100 payments at the beginning of each month for the next two-and-a-half years. He will then pay nothing for the next two years. Finally, after four-and-a-half years, he will make $200 payments at the beginning of each month for one year, which will pay off his debt completely. For the first four-and-a-half years, the interest on...

  • Cal Lury owes $35,000 now. A lender will carry the debt for four more years at...

    Cal Lury owes $35,000 now. A lender will carry the debt for four more years at 10 percent interest. That is, in this particular case, the amount owed will go up by 10 percent per year for four years. The lender then will require that Cal pay off the loan over the next 12 years at 13 percent interest.    What will his annual payment be? Use Appendix A and Appendix D for an approximate answer, but calculate your final...

  • Cal Lury owes $34,000 now. A lender will carry the debt for eight more years at...

    Cal Lury owes $34,000 now. A lender will carry the debt for eight more years at 9 percent interest. That is, in this particular case, the amount owed will go up by 9 percent per year for eight yeers. The lender then will require that Cal pay off the loan over the next 16 years at 12 percent interest What will his annual payment be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments

  • 1. Sunland, Inc. owes $37,310 to Cxiitter Company. How much would Sunland have to pay each...

    1. Sunland, Inc. owes $37,310 to Cxiitter Company. How much would Sunland have to pay each year if the debt is retired through four equal payments (made at the end of the year), given an interest rate on the debt of 9%? 2. You are interested in purchasing a Honda Acura. The salesperson indicated that the price of the car was either $26,000 cash or $6,500 at the end of each of 5 years. Compute the effective-interest rate to the...

  • Help ure.vretta.com Vretta BMAT text Question 2 of 4 James purchased a house for $475,000. He...

    Help ure.vretta.com Vretta BMAT text Question 2 of 4 James purchased a house for $475,000. He made a down payment of 10.00% of the value of the house and received a mortgage for the rest of the amount at 4.329 compounded semi-annually amortized over 15 years. The interest rate was fixed for a 7 year period. 59 a. Calculate the monthly payment amount. rint $0.00 Round to the nearest cent b. Calculate the principal balance at the end of the...

  • Mr Benard is struggling to repay his loan of $ 400,000 with payments of $ 7,200...

    Mr Benard is struggling to repay his loan of $ 400,000 with payments of $ 7,200 made monthly in arrears for 6 years. (a) Calculate the FLAT RATE OF INTEREST per annum (b) Hence, or otherwise, calculate the APR of Mr Benard's loan After exactly one , loan company offers to " help" Mr Benard by restructuring his loan with new monthly payments of $ 4,000 made in arrears (c) Assuming the company charges the same APR as Mr Benard's...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT