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- Mail Solicitation Home Equity Loan: Is This a Good Deal? Discover offers a home equity line of credit that lowers the total of the monthly payments on several hypothetical loans by $367.32. (See the following table.) The home equity loan payment is based on "10.43% APR annualized over a 10-year term." This means that the loan is amortized at 10.43% with monthly payments. Table 1t Question 1 Current Monthly Payment Example Discover Home Equity Loan Type Loan Amount Monthly Payment Loan Amount Monthly Payment Bank cards $10,000 $186.00 PAID OFF NONE Auto loan $12,500 $320.03 PAID OFF NONE Department $2,500 $78.58 PAID OFF NONE store cards Discover home equity line of $25,000 $217.29 credit Total $25,000 $584.61 $25,000 $217.29 Using this interest rate and monthly payments for the 10 years, how much money will still be owed at the end of the 10 years? (Round to the nearest cent.) $28763.18 X Question 2 Question 3 How much would the payment have to be for the debt to be paid in the 10…Cost of Bank Loans Del Hawley, owner of Hawley's Hardware, is negotiating with First City Bank for a 1-year loan of $93,000. First City has offered Hawley the alternatives listed below. Calculate the effective annual interest rate for each alternative. Do not round intermediate calculations. Round your answers to two decimal places. a. A 11% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year. 11 b. A 8% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year. 10 c. A 8.5% annual rate on a discounted loan, with a 15% compensating balance. * 8.5 7 % X % d. Interest figured as 7% of the $93,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year. Alternative B # % % Which alternative has the lowest effective annual interest rate?Cost of Bank Loans Del Hawley, owner of Hawley's Hardware, is negotiating with First City Bank for a 1-year loan of $65,000. First City has offered Hawley the alternatives listed below. Calculate the effective annual interest rate for each alternative. Do not round intermediate calculations. Round your answers to two decimal places. a. A 14% annual rate on a simple interest loan, with no compensating balance required and interest due at the end of the year. 14 b. A 10% annual rate on a simple interest loan, with a 20% compensating balance required and interest due at the end of the year. 12.5 c. An 8% annual rate on a discounted loan, with a 15% compensating balance. 9.41 % 9.38 % d. Interest figured as 9% of the $65,000 amount, payable at the end of the year, but with the loan amount repayable in monthly installments during the year. Alternative A V % % Which alternative has the lowest effective annual interest rate?
- Unsubsidized Student Loans Step 1 You receive a 10-year unsubsidized student loan of $33,000 at an annual Interest rate of 5.8%. Use simple interest to find your new total loan amount after you graduate in 4 years. (Round your answer to the nearest cent.) $7656 x 40656.00 Step 2 Your new total loan amount is $40656.00. What are your monthly loan payments for this loan? (Round your answer to the nearest cent.) %24 |x Submit Skip (you cannot come back)ofiles Tab Window Help (78117/quizzes/195667/take Question 2 The bank is paying 9% interest compounded quarterly. If you deposit P5,000 at the beginning of each 3-month into a savings account. How much will it be worth in 10 years? Question 3 Vilma wants to have P350,000 at the end of 5 years by making a regular deposit at the end of each quarter in an account that pays 9.6% interest, compounded every 3 months. a. Find the amount of quarterly deposit. P b. Find the accumulated amount in the account after the 15th.P DO FS F6 F7 F9 &ath Advanced MathQ&A LibraryYou borrow Ksh 1.2million to buy a new car. The lender charges 5% p.a. compounded at the end of each month. You intend to pay the loan off in 5 years. i. How much interest will you pay on the loanii. If the interest is compounded once a year instead of monthly, how much interest would you pay iii. What is the effective interest rate for the loan iv. How would the effective interest rate change if interest was compounded fortnightly instead of monthly? v. Generate a table to show how the Loan of 1million to 2million should be paid over 1 yr, 2yrs and 3yrs in successive quantums of 100,000 to enable any borrower to see what best fits their capability of repayment Formulae A = P(1 +i)n B =P(1+ i/m)mn C =(1+i/m)m- 1 You borrow Ksh 1.2million to buy a new car. The lender charges 5% p.a. compounded at the end of each month. You intend to pay the loan off in 5 years. i. How much interest will you pay on the loanii. If the interest is compounded once a year…
- FINANCE QUESTION Note:- Plz Don't use Excel Only Show your work By Typing Answer with formula Or Handwrite in plane Page.... Question→ A loan can be settled by monthly payments of $350 in four years at 5.5% compounded monthly. If the lender sells the loan contract after two years, calculate the selling price if the new buyer’s rate of return is: 5.5% compounded monthly; 5.0% compounded monthly. Explain the impact on the selling price of a loan contract if the interest rate on the contract increases.Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $38,000. The dealer has told Tim that if he can come up with a down payment of $5,300, the dealer will finance the balance of the price at a 6% annual rate over 4 years (48 months). (Hint: Use four decimal places for the monthly interest rate in all your calculations.) a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.4%? ..... a. Tim's monthly (end-of-month) payment amount is $ (Round to the nearest cent.) b. Tim's monthly payment, if the dealer were willing to finance the balance of the car price at an annual rate of 3.4%, would be $ (Round to the nearest cent.)Siyles Assume twwo banks have different offers to take a lone. Where the amount will be compound monthly. How much money you must pay on 10 years. Bank A Bank B Loan 75,000 5.25% 25,000 Interest Rate 5% 1. Calculate the monthly compounded amount for Bank A and B algebraically. 2. Calculate the monthly compounded amount for Bank A and B using MS excel 3.Decide which bank you will select and why. 4. find the annual rate of interest, compounded quartile will money double in 4 years?
- Future Value Computation Peyton Company deposited $10,500 in the bank today, earning 12% interest. Peyton plans to withdraw the money in 5 years. How much money will be available to withdraw assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly? Use Excel or a financial calculator for computation. Round your answer to nearest dollar. (a) Annually %24 (b) Semiannually $ (c) Quarterly 2$www Will You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, th bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of the loan. What is the effective annuall interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Effective annual interest rate 19.98 % < PrevQUESTION 14 You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining balance under a bank amortization plan to be paid in 8 years. At an effective quarterly interest rate of 1.5%, How much interest will you pay in the 2nd year Solve on the white paper or typed. Not explain in the excel.