fiCMP: Quiz 4.2.21) A firstyear college student borrows money (a loan) tohelp pay for the tuition. The student can borrow$8,000 at an APR of 4% compounded monthly and willnot have to make any payments until graduationis complete. However the interest will start to AccrveWhen the loan is taken out.NAMEA) Assuming graduation takes 4 years, what will thebalance of the loan be when the student startsto pay monthly?Bal(n) = (Bal) (1 + √2)^$300 perB) If the student only payshowthe LOANwill the student have to pay balance reaches,long(assume the loAN will be paid when the balance reaches)$100.12tOWED = (Bal) (1 + √₂2) 1¹²+ - (Payment) ( ( 1 + ²/12) ¹2 =1)7/12month,2

The balance of a loan is the amount of money that is still owed on the loan. When a person borrows…

Answered: 1) A first year college student borrows…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 23PROB

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Create an Amortization schedule-see amortization video. How much student debt will I bear by the time I graduate? What will my student loan payments be? a. My undergraduate student debt is $32,500. I have secured a 4.08% annual rate (EAR) for a 25-year loan, identify the monthly payment. b. What is the total amount of interest paid on this loan? c. In total (interest plus principle) how much did you pay for this $32,500 loan?
1. Exercise One: Jessica decides to take a $25,000 to help her cover her tuition expenses. The tenor of the loan is 10 years, and the interest rate is 6.75%. Repayments will be made on a monthly frequency. Based on the aforementioned information, and the material covered in class, (a) use the PMT function in Excel to find the fixed total payment, (b) verify your answer from (a) by programming the present value annuity formula as shown in class, (c) create an amortization schedule for this loan, (d) create a bar chart showing the Fixed Total Payment, Interest Paid, and Principal Paid.
Tony Ring wants to attend Northeast College. He will need $75,000 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $75,000 in 4 years? (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. X Answer is complete but not entirely correct. Amount to be deposited $ 47,056 X
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Often, through government-supported programs, students may obtain "bargain" interest rates such as 6% or 8% to attend college. Frequently, payments are not due and interest does not accumulate until the student stops attending college. A student has borrowed $52,000 at an annual interest rate of 6.8%. Calculate the amount of interest due 5 months after the student must begin payments. Question content area bottom Part 1 The interest due is $enter your response here. (Round to the nearest cent as needed.)
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I’m order to start a small business, a student takes out a simple interest loan for 8000 for 3 months at a rate of 9.00%. How much interest must the student pay? Find the future value of the loan
In order to start a small business, a student takes out a simple interest loan for $3000 for 9 months at a rate of 11.25%. a. How much interest must the student pay? b. Find the future value of the loan.
Today you made a student loan of $10,000 with the 5.5% annual interest rate. You will be in school next four years and you do not have any obligation to make payments until you graduate while the interest accumulates. How much will you owe in four years when you start making payments? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase a car immediately after graduating which will cotst you P 750 000. How much should you invest at the end of every year in an investment fund that earns 9% annually to have enough to buy the car upon graduation? a. P 164 000 b. Р 531 300 с. Р 607 445 d. P 132 828
Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans at an annual interest rate of 10%. If Mary repays $1,300 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
A man plans to take a vacation in 4 years. He wants to buy a certificate of deposit for $1200 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1700 for the trip? Assume that the interest on the loan is computed using simple interest The rate he must obtain is ___%

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