Question 1

Kris has borrowed $2,000 and has agreed to repay the loan in two payments in nine and fifteen months. Each payment is $1,000 of principal and interest at the rate of 7%. Kris wants to settle the debt in six months. What single equivalent payment should she make if money is now worth 5%?

Accepted Answer

The answer of Kris has borrowed $2,000 and has agreed...

Question 2

Calculate the size of the equal payments. Use the loan date as the focal date.

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The answer of Calculate the size of the equal payments....

Question 3

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

Accepted Answer

The answer of A $5,000 loan made on March 15...

Question 4

An $8,000 loan at an interest rate of 6.5% is to be repaid in three equal payments at six months, nine months, and one year later. Determine the size of the equal payments.

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The answer of An $8,000 loan at an interest rate...

Question 5

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.

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The answer of $3,000 loan was advanced on March 1....

Quiz 6: Simple Interest

Kris has borrowed $2,000 and has agreed to repay the loan in two payments in nine and fifteen months. Each payment is $1,000 of principal and interest at the rate of 7%. Kris wants to settle the debt in six months. What single equivalent payment should she make if money is now worth 5%?

Calculate the size of the equal payments. Use the loan date as the focal date.

A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?

An $8,000 loan at an interest rate of 6.5% is to be repaid in three equal payments at six months, nine months, and one year later. Determine the size of the equal payments.

$3,000 loan was advanced on March 1. The loan is to be repaid by the three indicated payments. Calculate the unknown payment in each case. Use the loan date as the focal date.