Mr. Park plans to loan 500,000 from a bank to replace his old equipment. The bank approved him the money with an interest rate of 15% compounded monthly payable for 3 years, first being due at the end of 2 years. His monthly salary is 20,000. Can Mr. Park pay his monthly obligations?
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Mr. Park plans to loan 500,000 from a bank to replace his old equipment. The bank approved him the money with an interest rate of 15% compounded monthly payable for 3 years, first being due at the end of 2 years. His monthly salary is 20,000. Can Mr. Park pay his monthly obligations?
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- Jim wants to deposit an amount anually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Mark has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. How much should Mark place in the account annually to cover his retirement needs.Mr. Joe pays $2068 a month for the loan he took from a bank. If the total payment period is 3 years and the interest rate is 29% per year compounded monthly. Determine the amount of loan Mr Joe took?James received a 15 year loan of $230,000 to purchase a house. The interest rate on the loan was 2.10% compounded semi- annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 2? Round to the nearest cent c. By how much will the amortization period shorten if James makes an extra payment of $30,000 at the end of year 2?
- Mr. Doe is trying to decide whether to put his money in the XYZ Bank or the ABC Bank. The XYZ Bank pays 6% per annum interest, compounded annually; the ABC Bank pays 5% per annum interest, compounded quarterly. Mr. Doe expects to keep his money in the bank for 5 years. Which bank should he select?Julio buys a koi fishpond (and fish to put in it) for his wife on their anniversary. He pays $8000 for the pond and fish with $2000 down. The dealer charges add-on interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information to answer the following questions: a.)Find the total amount of interest he will pay. b.)Find the monthly payment. c.)Find the APR value (to the nearest half percent). d.)Find (1d.) the unearned interest and (2d.) the payoff amount if he repays the loan in full with 12 months remaining. Use the most accurate method available.Mr. Reyes wants to retire 15 years from now. Aside from the retirement benefits from his company and the social security benefits that he will get, Mr. Reyes wants to have an additional 2 million pesos when he retires. To achieve this goal, he will make equal annual deposit at the end of each year for the next 15 years in an account that earns 5% interest per annum. How much should Mr. Reyes deposit each year?
- Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an annuity of $600 per month for twenty-four years. How much he deposit if the Trust Company agrees to accumulate interest at the rate of 6% payable monthly? show solutionMegan takes out a car loan for $13,000. She intends to make monthly payments for 5 years to pay off her loan. If the bank charges her an annual interest rate of 4.2% computed monthly on the loan balance, how much will her monthly payments be?İhsan wants to pay the 50,000 TL loan he received from the bank in annual installments of 2,500 TL at the end of each year, and if any balance payment remains, he will make the remaining balance after the last installment. If the annual interest rate is 5%, Mr. İhsan, how many payments and what will be the final balance payment.
- sky wants to purchase a new house that cost 1,440,000. The bank agrees to provide a loan to fixed interest rate of 5.88%. Compute her amortization when spread over a. 5 years b. 10 years. which loan term will she avail if she is recieving a salary of 20,000 per monthCraig decides to purchase a property that has been valued at $480,000. He has $90,000 available as a deposit and will require a mortgage for the remaining amount. The bank offers him a 25 year mortgage at 2% interest. Calculate the total interest he will pay over the life of the loan, assuming he makes monthly payments.Geoff has paid $19,000 for a retirement annuity from which he will receive $1,624 at the end of every month. The payments are deferred for 14 years and interest is 3% compounded monthly. (a) How many payments will Geoff receive? (b) What is the size of the final payment? (c) How much will Geoff receive in total? (d) How much of what he receives will be interest?
