Marta needs some quick cash for books at the beginning of spring semester, so she borrows $500 at 9% simple interest for 4 months. How much interest will she pay, and what is the future value of the loan?.
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- A student has a savings account earning 12% simple interest. She must pay $1250 for first-semester tuition by September 1 and $1250 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1250 between September 1 and January 1? Step 1 We know that the student will need $__________ on September 1 for the fall tuition.We must determine the additional amount P she will need so that she can pay her spring tuition on January 1,___________ months later.Since she can earn 12% simple interest on the money she has, we can use the future value for the additive, natrual, compound, simple interest formula. S = P + Prt In this problem, we want the future value to be the amount she will owe on January 1, which is S = $___________We know that the interest rate as a decimal is r =_____________ and the amount of time is t =___________ years.You finance your college education with a student loan. Every month, you borrow $1,000 to pay for living expenses. While in college, you do not have to pay interest on the loan, nor do you need to pay back any loan principal. However, the interest accrues to your loan balance. Assume an annual interest rate of 6% on your student loan, what will be your loan balance when you graduate in four years (round your answer to the nearest dollar)? $52,495 None of these are correct $48,000 $54,098 50,880In 10 months, Alex will need $1,320.00 to pay her college tuition. How much does she need to invest today into an account earning an an interest rate of 8.745% compounded monthly, so that she has enough money to pay her tuition? The amount Alex needs to invest is (Note: Your answers should include a dollar sign and be accurate to two decimal places)
- A student needs to borrow $7,000 to pay for college. She can get a loan at an APR of 10% to paid off in monthly installments over the next 4 years. If she decides to pay the loan off in monthly installments over 3 years instead of 4 years at the given APR, how much money will she save altogether. Round to the nearest centMaria wants to attend Clarke University. She will need $90,000 eight years from today. Assume Maria's bank pays 6% interest compounded semiannually. What must Maria deposit today to have $90,000 in eight years? verify your answer.Scenario: Ashley decides to pay 500 total to her student loans each month. She continues the minimum payment on the loan with the lower interest rate and puts the rest of the $500 towards the higher interest rate loan until it's paid off. Then she puts all $500 towards the lower interest rate loan until it is paid off. a) How much total interest will Ashley pay in this scenario? b) How much does she save by increasing her payments in this way
- A bank offers a savings account with a 3% annual interest rate, compounded monthly. Sars wants to open a savings account and make one deposit now that will enable her to withdraw $700 to go on vacation 5 months from now. How much money does Sara need to deposit now?A student has a savings account earning 3% simple interest. She must pay $1100 for first-semester tuition by September 1 and $1100 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1100 between September 1 and January 1? (Round your answer to the nearest cent.)1) Student A has a credit balance of $20,000. The annual effective interest rate on the credit card is 20%. Student A takes out a home equity loan to pay off her credit card balance. The interest rate equity loan is 5%. Ignoring taxes, how much does this strategy save Student A, assuming she pays off the loan in full 18 months from now?
- Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for $45004500 and plan to begin paying it back on December 1 after graduation and grace period 27 months later. The interest rate is 6.8%. How much of what you will owe will be interest?$Round your answer to the nearest cent.A student graduates from college with $49,000 in student loans with a 6.8% annual simple interest rate. In order to reduce his debt as quickly as possible, beginning next month he is going to pay $800 per month towards the loan. After his first payment, how much will he owe on the loan?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 ___%