Tutors Answer Your Questions about Finance (FREE)
Question 1202558: Ron borrowed $1800 to finance a computer at 15.6%/a compounded monthly for 1 1/2 years.
a) How much will his monthly payments be?
b) How much more would Ron have to pay per month to pay the loan off 6 months early?
c) How much interest would Ron save if he paid the loan off early?
Click here to see answer by mananth(16946)   |
Question 1202557: Kara wants to remodel her kitchen. She budgets $25,000 for the job. Her bank is offering her the loan at a rate of 12.6%/a compounded monthly. She has the freedom to choose between paying it off over a 5, 7, or 10 year term.
a) Determine the monthly payment for each term.
b) Calculate how much interest Kara would pay for each term.
c) Which term should Kara choose? Why might she choose a different term?
Click here to see answer by mananth(16946) |
Question 1202556: Marissa has just won the Cash for Life lottery. She must decide between two prize options:
- collect a lump-sum payment of $1 million, or
- receive $1000 every week for 25 years.
After researching her options she concludes that she can safely earn 4%/a interest if she invests the $1 million in a combination of risk-free GICs and Mutual Funds. This would allow her to pay herself every week for 25 years while earning interest (compounded weekly) on the remaining balance.
a) How much would she receive each week if she invested the money herself?
b) Which option should she select? How much more money does this option provide over the life of the payments?
Click here to see answer by Theo(13342)  |
Question 1202585: Company is interested in finding out if there is any difference in the average salary received by managers of two divisions. Accordingly, samples of 12 managers in the first division and 10 managers in the second division where selected at random. The results are given below:
Div 1: n1=12, bar x1=12500, s1=320
Div2: n2=10, bar x2=11200, s2=480
Use alpha= 0.05 to find out whether there is significant difference in the average salary
Click here to see answer by Theo(13342) |
Question 1202635: Ali invests $14 800 in an account that earns interest compounded semi-annually for 8 years. She then takes all the money, which amounts to $17 063.24, and invests it in an account that earns interest compounded quarterly for 6 years. After the 14 years, the account is worth $18 846.11. What annual interest rate was Ali earning on each of the accounts?
Click here to see answer by math_tutor2020(3817) |
Question 1202634: No technology is required for this question.
a) Which annuity formula - Present Value or Future Value - more closely resembles the geometric series formula? Explain.
b) Why is an annuity an example of a geometric series? Explain.
c) Why can we not model compound interest with the geometric series formula?.
Click here to see answer by Theo(13342) |
Question 1201043: Question 3 (15 marks) John has just purchased an apartment at a price of $5,000,000. He made a down-payment of $2,000,000 and financed the remaining with a 30-year mortgage at APR 12%, compounded monthly. (a) Determine the size of the fixed month-end payments. (5 marks)
(b) Calculate the amount John still owes the bank right after the 120th payment was made. (5 marks)
(c) Calculate the interest payment and the amount of principal paid in the 121st loan repayment. (5 marks)
Click here to see answer by mananth(16946) |
Question 1201043: Question 3 (15 marks) John has just purchased an apartment at a price of $5,000,000. He made a down-payment of $2,000,000 and financed the remaining with a 30-year mortgage at APR 12%, compounded monthly. (a) Determine the size of the fixed month-end payments. (5 marks)
(b) Calculate the amount John still owes the bank right after the 120th payment was made. (5 marks)
(c) Calculate the interest payment and the amount of principal paid in the 121st loan repayment. (5 marks)
Click here to see answer by ikleyn(52781)  |
Question 1201043: Question 3 (15 marks) John has just purchased an apartment at a price of $5,000,000. He made a down-payment of $2,000,000 and financed the remaining with a 30-year mortgage at APR 12%, compounded monthly. (a) Determine the size of the fixed month-end payments. (5 marks)
(b) Calculate the amount John still owes the bank right after the 120th payment was made. (5 marks)
(c) Calculate the interest payment and the amount of principal paid in the 121st loan repayment. (5 marks)
Click here to see answer by math_tutor2020(3817) |
Question 1202727: Consider the following information on TD Bank savings accounts:
https://www.td.com/ca/en/personal-banking/products/bank-accounts/account-rates
a) Why are there over 20 rates available with TD Bank?
b) Let's say that you have spent approximately $125 on fast food and entertainment over the last month. If you instead saved this money and deposited it today into a savings account with TD, what interest rate would you get? Explain.
Consider the following information on the Simplii Financial savings account:
https://www.simplii.com/en/bank-accounts/high-interest-savings.html
c) Using the same amount you spent on fast food and entertainment in (b), if you instead saved this money and deposited it today into a savings account with Simplii, what interest rate would you get?
d) If you wanted to open an account to earn the most interest, what bank would you choose an account with?
Click here to see answer by ikleyn(52781) |
Question 1202728: You have searched online and found banks offering two different interest rates for the same service: Bank A offers 4.5%/a and Bank B offers 4.9%/a. All other terms of the service are the same.
In what situation would you be better off choosing Bank B? Explain
Click here to see answer by ikleyn(52781) |
Question 1202728: You have searched online and found banks offering two different interest rates for the same service: Bank A offers 4.5%/a and Bank B offers 4.9%/a. All other terms of the service are the same.
In what situation would you be better off choosing Bank B? Explain
Click here to see answer by math_tutor2020(3817) |
Question 1202734: A new car will cost $92,200. The dealership requires a 15% down payment. In order to save up the down payment, you set up an annuity with an annual interest rate of 4.4%. How much will you need to deposit each month in order to have the down payment in 2 years?
Click here to see answer by math_tutor2020(3817) |
Question 1202754: You're planning to make a one-time deposit into an account paying 8.3% annual interest, compounded semiannually. you want to have $76,500 at the end of 6 years. How much do you need to deposit today to make this happen?
Click here to see answer by ikleyn(52781) |
Question 1202755: You've bought a house for $191,900, and obtained a 30-year mortgage at an annual interest rate of 5.2%. What will your monthly payment be?
I got $1053.74
After 10 years, you still owe $128,573. You decide to refinance by taking out a new 20 year mortgage at 4.7%. What will your new monthly payment be?
i got $827.36
How much will you save in interest over the 20 years?
I got $54331.20
i don't know how to separate these without sounding like I have an incomplete problem?
Click here to see answer by ikleyn(52781) |
Question 1202718: You have taken a loan of $70,000.00 for 27 years at 5.3% compounded quarterly. Fill in the table below
Payment number Payment amount Principal Amount. interest Balance
0. $70,000
1. $________. $___________. $______. $________
2. $____________. $_______. $_________
3. $____________. $________. $_________
Click here to see answer by Alan3354(69443)  |
Question 1202828: Yumi's grandparents presented her with a gift of $21,000 when she was 9 years old to be used for her college education. Over the next 8 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 3.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is expected to earn interest at the rate of 4%/year, compounded annually, what will be the size of each installment? (Assume no interest is accrued from the point she turns 17 until she makes the first withdrawal. Round your answer to the nearest cent.)
$
Click here to see answer by Theo(13342) |
Question 1202826: The price of a new car is $20,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to the nearest cent.)
(a) What monthly payment will she be required to make if the car is financed over a period of 60 months? Over a period of 72 months?
60 months $
72 months $
(b) What will the interest charges be if she elects the 60-month plan? The 72-month plan?
60-month plan $
72-month plan $
Click here to see answer by Theo(13342) |
Question 1202829: Jennifer is the owner of a video game and entertainment software retail store. She is currently planning to retire in 30 years and wishes to withdraw $15,000/month for 20 years from her retirement account starting at that time. How much must she contribute each month for 30 years into a retirement account earning interest at the rate of 4%/year compounded monthly to meet her retirement goal? (Round your answer to the nearest cent.)
$
Click here to see answer by Theo(13342) |
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