# Construct the amortization schedule for a - 95055

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## shri21

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1. Using the formula for simple interest and the given values, find I. P=\$200; r=6%; t=4 years; I=? I = \$48 2. Using the formula for simple interest, I=Prt, to find the indicated quantity. I=\$36; r=6%; t=3 months; P=? P = \$2400 3. Determine the present value P you must invest to have value A at simple interest rate r after t. A=\$2000.00, r = 14.5%, t=26 weeks \$1864.80 4. A radio commercial for a loan company states: “You only pay 29 cents a day for each \$500 borrowed. “ If you borrow \$1,922 for 235 days, what amount will you repay, and what annual interest rate is the company actually charging? (assume a 360-day year) a. Amount you repay = \$2183.97 b. Annual interest rate = 20.8800% 5. Use the compound interest formula to find the future value A for the following values. P=\$500 I=0.045 N=25 A = \$1502.72 6. Given the annual interest rate and the compounding period, find i, the interest rate per compounding period. 8% compounding monthly I = 0.667% per month 7. Given the rate per compounding period, find r, the annual rate. 4.325% per quarter R = 17.300% 8. A newborn child receives a \$5000 gift toward a college education from her grandparents. How much will the \$5000 be worth in 18 years if it is invested at 6% compounded quarterly? It will be worth \$14605.79 9. Find I (the rate per period) and n (the number of periods) for the following annuity. Quarterly deposits of \$1,100 are made for 5 years into an annuity that pays 6% compounded quarterly. I = 0.0150 N = 20 10. Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If \$922 is deposited into this annuity every month, how much is in the account after 4 years? How much of this is interest? Type the amount in the account: \$48978 Type the amount of interest earned: \$4722 11. A company estimates that it will need \$157,000 in 9 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 5.4% compounded monthly, how much should each payment be? The amount of each payment should be \$1132.16 12. Solve the following problem PV=\$23,897; n=92; i=0.035; PMT=?; PMT = \$873.26 13. American General offers a 14 year-year annuity with a guaranteed rate of 4.81% compounded annually. How much should you pay for one of these annuities if you want to receive payments of \$900 annually over the 14 year period? How much should a customer pay for this annuity? \$9017.99 14. You want to purchase an automobile for \$27,046. The dealer offers you 0% financing for 60 months or a \$4974 rebate. You can obtain 6.3% financing for 60 months at the local bank. Which option should you choose? ___ Rebate ___ 0% financing How much money will you save per month? \$20.97 15. Construct the amortization schedule for a \$14,000 debt that is to be amortized in 10 equal payments at 6% interest per half-year on the unpaid balance. Fill out the amortization schedule below. Round all values to the nearest cent Payment Number Payment Interest Unpaid Balance Reduction Unpaid Balance Amortization Schedule
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