Question 1

James amortizes a loan of $210,000 for a new home by obtaining a 40-year mortgage at the rate of 7.5% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 15 years.

Accepted Answer

The answer of James amortizes a loan of $210,000 for...

Question 2

A 20-year loan for $100,000 is to be amortized by equal semiannual payments.If interest is at the nominal rate of 10% compounded semiannually,find (a)the semiannual payment; (b)the interest in the first payment; (c)the principal repaid in the first payment.

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Question 3

Find the future value of an annuity due with monthly payments of $250 for 26 years at 6% compounded monthly.

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Question 4

The Krishnans amortize a loan of $150,000 for a new home by obtaining a 40-year mortgage at the rate of 10.2% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 15 years.

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Question 5

A $10,000 loan is amortized by equal semiannual payments over 5 years.If the interest rate is 8% compounded semiannually,then the principal repaid in the first payment is

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The answer of A $10,000 loan is amortized by equal...

Question 6

Cyndi bought a multimedia home computer system for $4500 and agreed to pay off the loan by making monthly payments of $109.If the store charges an interest rate of 9.7% compounded monthly,how many months will it take to pay off the debt?

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Question 7

After graduating from college and gaining employment,you decide to open an IRA to help save for retirement.If the IRA earns 6.15% compounded monthly and you deposit $250 into this IRA at the end of each month,what will be the amount you have when you retire 43 years later?

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The answer of After graduating from college and gaining employment,you...

Question 8

You wish to be a millionaire when you retire.To accomplish this you decide to open up an IRA and make equal monthly payments at the end of each month.If the IRA earns 7.5% compounded monthly and you know you will retire in 40 years,what must be the monthly payment to obtain your $1,000,000?

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Question 9

A couple bought a motorboat for $11,000 and agreed to pay off the loan by making monthly payments of $559.If the dealer charges an interest rate of 8.9% compounded monthly,how many months will it take to pay off the debt?

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The answer of A couple bought a motorboat for $11,000...

Question 10

A man bought a stereo system for $3500 and agreed to pay off the loan by making monthly payments of $79.If the store charges an interest rate of 11% compounded monthly,how many months will it take to pay off the debt?

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The answer of A man bought a stereo system for...

Question 11

A person amortizes a loan of $180,000 for a new home by obtaining a 30-year mortgage at the rate of 8.7% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 10 years.

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The answer of A person amortizes a loan of $180,000...

Question 12

An $800 loan is amortized by equal quarterly payments over two years.If interest is at the rate of 16% compounded quarterly,then the quarterly payment is

Accepted Answer

The quarterly interest rate is 4% (16% annually compounded quarterly). The loan is amortized over 8 quarters (2 years). Using the formula for the amortization of a loan, the quarterly payment can be calculated as $118.82.

Question 13

A person purchases a home for $130,000,makes a down payment of $30,000.Find the monthly payment if the person takes a loan for 15 years with an interest rate of 8% compounded monthly.

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Question 14

Find the future value of an annuity due with semiannual payments of $6,250 for 21 years at 4.25% compounded semiannually.

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Question 15

Find the future value of an annuity due with quarterly payments of $550 for 32 years at 3.75% compounded quarterly.

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Question 16

A person purchased a television set for $850 and agreed to pay it off by monthly payments of $50.If the store charges an interest rate of 9% compounded monthly,how many months will it take to pay off the debt?

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The answer of A person purchased a television set for...

Question 17

A person purchases a home for $130,000,makes a down payment of $30,000.Find the monthly payment if the person takes a loan for 25 years with an interest rate of 8% compounded monthly.

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The answer of A person purchases a home for $130,000,makes...

Question 18

Mary amortizes a loan of $80,000 for a new home by obtaining a 15-year mortgage at the rate of 9.9% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 8 years.

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The answer of Mary amortizes a loan of $80,000 for...

Question 19

A debt of $600 is to be repaid by two equal yearly payments with interest at the rate of 5% compounded annually.Complete the following amortization schedule for this debt.  
Totals ________ ________ ________ ________

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Question 20

A $5000 loan is to be repaid over three years by equal payments due at the end of every quarter.If interest is at the rate of 20% compounded quarterly,determine (a)the quarterly payment and (b)the total interest paid.

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The answer of A $5000 loan is to be repaid...

Quiz 6: Mathematics of Finance

James amortizes a loan of $210,000 for a new home by obtaining a 40-year mortgage at the rate of 7.5% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 15 years.

A 20-year loan for $100,000 is to be amortized by equal semiannual payments.If interest is at the nominal rate of 10% compounded semiannually,find (a)the semiannual payment; (b)the interest in the first payment; (c)the principal repaid in the first payment.

Find the future value of an annuity due with monthly payments of $250 for 26 years at 6% compounded monthly.

The Krishnans amortize a loan of $150,000 for a new home by obtaining a 40-year mortgage at the rate of 10.2% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 15 years.

A $10,000 loan is amortized by equal semiannual payments over 5 years.If the interest rate is 8% compounded semiannually,then the principal repaid in the first payment is

Cyndi bought a multimedia home computer system for $4500 and agreed to pay off the loan by making monthly payments of $109.If the store charges an interest rate of 9.7% compounded monthly,how many months will it take to pay off the debt?

After graduating from college and gaining employment,you decide to open an IRA to help save for retirement.If the IRA earns 6.15% compounded monthly and you deposit $250 into this IRA at the end of each month,what will be the amount you have when you retire 43 years later?

You wish to be a millionaire when you retire.To accomplish this you decide to open up an IRA and make equal monthly payments at the end of each month.If the IRA earns 7.5% compounded monthly and you know you will retire in 40 years,what must be the monthly payment to obtain your $1,000,000?

A couple bought a motorboat for $11,000 and agreed to pay off the loan by making monthly payments of $559.If the dealer charges an interest rate of 8.9% compounded monthly,how many months will it take to pay off the debt?

A man bought a stereo system for $3500 and agreed to pay off the loan by making monthly payments of $79.If the store charges an interest rate of 11% compounded monthly,how many months will it take to pay off the debt?

A person amortizes a loan of $180,000 for a new home by obtaining a 30-year mortgage at the rate of 8.7% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 10 years.

An $800 loan is amortized by equal quarterly payments over two years.If interest is at the rate of 16% compounded quarterly,then the quarterly payment is

A person purchases a home for $130,000,makes a down payment of $30,000.Find the monthly payment if the person takes a loan for 15 years with an interest rate of 8% compounded monthly.

Find the future value of an annuity due with semiannual payments of $6,250 for 21 years at 4.25% compounded semiannually.

Find the future value of an annuity due with quarterly payments of $550 for 32 years at 3.75% compounded quarterly.

A person purchased a television set for $850 and agreed to pay it off by monthly payments of $50.If the store charges an interest rate of 9% compounded monthly,how many months will it take to pay off the debt?

A person purchases a home for $130,000,makes a down payment of $30,000.Find the monthly payment if the person takes a loan for 25 years with an interest rate of 8% compounded monthly.

Mary amortizes a loan of $80,000 for a new home by obtaining a 15-year mortgage at the rate of 9.9% compounded monthly.Find (a)the monthly payment,(b)the total interest charges,and (c)the principal remaining after 8 years.

A debt of $600 is to be repaid by two equal yearly payments with interest at the rate of 5% compounded annually.Complete the following amortization schedule for this debt. Totals ________ ________ ________ ________

A $5000 loan is to be repaid over three years by equal payments due at the end of every quarter.If interest is at the rate of 20% compounded quarterly,determine (a)the quarterly payment and (b)the total interest paid.

A debt of $600 is to be repaid by two equal yearly payments with interest at the rate of 5% compounded annually.Complete the following amortization schedule for this debt. Totals