HomeworkLib
Question

1.Four years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and...

1.Four years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and agreed to pay it back in equal payments over a 10 year period. This same person now wants to pay off the remaining amount of the loan. How much should this person pay? Assume that she has just made the 3rd payment.

2.What is the accumulated amount resulting from a series of equal yearly deposits of $1,000 for 6 years if the interest rate is 9% per year compounded yearly? Assume that the first deposit is made 1 year from now.

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

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
1.Four years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and...
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

  • engnieering economy Note: Show all of your work to arrive at a final result and for...

    engnieering economy Note: Show all of your work to arrive at a final result and for full credit. 1) If a person places $10,000 in an account that pays 10% compounded annually, how much money will be in the account after 10 years? 2) Three years ago a person borrowed $15,000 at an interest rate of 10% compounded annually and agreed to pay it back in equal payments over an 8 year period. This same person now wants to pay...

  • A)   A person borrows 10.000 $ at 8% interest rate compounded annually and wishes to pay...

    A)   A person borrows 10.000 $ at 8% interest rate compounded annually and wishes to pay the loan back over a five- year period with annual payments. However, the second payment is to be 500 $ greater than the first payment, the third payment must be 1.000 $ greater than the second payment; the forth payment must be 1.500 $ greater than the third payment; and the fifth payment must be 2.000 $ greater than the fourth payment. Determine the...

  • -27 How much invested now at an interest rate of 9% compounded annually would be just...

    -27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...

  • RM60,000 is borrowed for 12 years at 5% compounded annually. The borrower does not pay interest c...

    RM60,000 is borrowed for 12 years at 5% compounded annually. The borrower does not pay interest currently and will pay all accrued interest at the end of 12 years together with the principal. (a) Find the amount annual sinking fund deposit necessary to liquidate the loan at the end of 12 years if the sinking fund earns 3% yearly compounding and the borrower make first payment immediately. (b) Prepared a sinking fund schedule. Ans: (a) RM 7,371.25 (PLS DUN ANSWER...

  • 1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest...

    1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...

  • 4) If a person deposits $2000 in to an account paying 6% compounded annually one year...

    4) If a person deposits $2000 in to an account paying 6% compounded annually one year from now and then increases his deposits by 100$ each year for the next eight years, determine the amount of money that will be in the account at the end of eight years. 5) What is the equivalent present amount of a fifteen year period series of decreasing amounts if the interest rate is 12% compounded annually the first year amount is $35000 and...

  • You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are...

    You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to make 10 equal end of-year payments to pay off the loan. a) What is the amount of these equal payments? b) What is the amount of the 10 payments if the first payment is not made until 3 years after receipt of the money?

  • Three years ago Jake borrowed R7 500 from Martha. The condition was that he would pay...

    Three years ago Jake borrowed R7 500 from Martha. The condition was that he would pay her back in seven years’ time at an interest rate of 11,21% per year, compounded semi-annually. Six months ago he also borrowed R25 000 from Martha at 9,45% per year, compounded monthly. Jake would like to pay off his debt four years from now. (a). The amount of money that Jake will have to pay Martha four years from now is (b). After seeing...

  • James King bought a house three years ago that cost $750,000. James put up 20% deposit and borrowed the rest from FC Bank at a rate of 7.2% per annum, compounded monthly, for 10 years. Three months ag...

    James King bought a house three years ago that cost $750,000. James put up 20% deposit and borrowed the rest from FC Bank at a rate of 7.2% per annum, compounded monthly, for 10 years. Three months ago, FC Bank notified James that after the last monthly payment for the third year, the interest rate on his loan will increase to 9.6% per annum, compounded monthly, in line with market rates. Also, from the fourth year of his loan James...

  • An amount of $45,000 is borrowed for 9 years at 8.25% interest, compounded annually. If the...

    An amount of $45,000 is borrowed for 9 years at 8.25% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back? Use the calculator provided and round your answer to the nearest dollar.

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