Tutors Answer Your Questions about Money Word Problems (FREE)
Question 1194125: John wants to buy a car on hire purchase for N$75,000.00 at the rate of 10% p.a. repayable using monthly installments for a period of 2 years and 8 months. (No deposit was required). Use the given information to calculate the:
Total amount of money expected to be paid to the Hire Purchase Company over the years.
Click here to see answer by ikleyn(52781)   |
Question 1193476: You have $400,000 saved for retirement. Your account earns 9% interest compounded monthly. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
$
You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 7% interest compounded monthly.
a) How big of a loan can you afford?
$
b) How much total money will you pay the loan company?
$
c) How much of that money is interest?
$
Click here to see answer by ElectricPavlov(122) |
Question 1193476: You have $400,000 saved for retirement. Your account earns 9% interest compounded monthly. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
$
You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 7% interest compounded monthly.
a) How big of a loan can you afford?
$
b) How much total money will you pay the loan company?
$
c) How much of that money is interest?
$
Click here to see answer by ikleyn(52781) |
Question 1193475: You want to buy a $12,000 car. The company is offering a 5% interest rate compounded monthly for 48 months (4 years). What will your monthly payments be?
$
You want to buy a $205,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be if the interest rate is 6%?
$
c) What will your monthly payments be if the interest rate is 7%?
$
Click here to see answer by ElectricPavlov(122) |
Question 1193475: You want to buy a $12,000 car. The company is offering a 5% interest rate compounded monthly for 48 months (4 years). What will your monthly payments be?
$
You want to buy a $205,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be if the interest rate is 6%?
$
c) What will your monthly payments be if the interest rate is 7%?
$
Click here to see answer by ikleyn(52781) |
Question 1193474: How much should you invest each month in order to have $700,000 if your rate of return is 2.1% compounded monthly and you want to achieve your goal in 40 years?
How much interest will you earn?
How much should you invest each month in order to have $700,000 if you want to achieve your goal in 20 years?
If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?
Click here to see answer by yurtman(42) |
Question 1193474: How much should you invest each month in order to have $700,000 if your rate of return is 2.1% compounded monthly and you want to achieve your goal in 40 years?
How much interest will you earn?
How much should you invest each month in order to have $700,000 if you want to achieve your goal in 20 years?
If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?
Click here to see answer by ikleyn(52781) |
Question 1193473: Jason borrowed $3100 from the bank for 22 months. The bank discounted the loan at 7.8%.
How much was the interest?
$
State your result to the nearest penny.
How much did Jason receive from the bank?
$
State your result to the nearest penny.
What was the actual rate of interest?
% State your result to the nearest hundredth of a percent
Click here to see answer by yurtman(42) |
Question 1193159: On March 5, 2016, Blake borrowed $79,650 from Equitable Bank at 4.09% p.a; he settled the loan on June 4, 2019.
a) How much was the maturity value of the loan?
$
b) How much was the amount of interest charged on the loan?
Click here to see answer by CPhill(1959)  |
Question 1193158: A payment of $2,830 is due in 60 days and another payment of $4,820 is due in 285 days. Calculate the single equivalent payment to be made in 65 days to settle the two payments if money earns 2.82% p.a. (Hint: use 65 days from now as the focal date.)
Click here to see answer by CPhill(1959) |
Question 1192905: uan negoitiates a ten year loan which requires him to pay $ 1,400 per month for the first five years, and $ 1,700 for the remaining years. The interest rate is 3 %, compounded monthly, and the first payment is due in one month. Determine the amount of principal in the 18th payment.
Click here to see answer by CPhill(1959) |
Question 1209509: What are the four phases of the business cycle? How long do business cycles last? How do seasonal variations and secular trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods and consumer durable goods industries more severely than in industries producing non-durables?
Click here to see answer by Edwin McCravy(20055)  |
Question 1209509: What are the four phases of the business cycle? How long do business cycles last? How do seasonal variations and secular trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods and consumer durable goods industries more severely than in industries producing non-durables?
Click here to see answer by ikleyn(52781) |
Question 1208431: Mateo and Klaus would like to buy a house and their dream starter home costs $650,000. Their goal is then to save $65,000 for a down payment and then would take out a mortgage loan for the rest. They plan to put their monthly saved amount in a conservative mutual fund that has a track record of a 4.25% rate of return, compounded quarterly. To break it into managebale amounts, they are going to deposit into their savings every week. Their hope is to be able to buy this home in 7 years.
What would their weekly savings amount have to be to reach this goal? [Blank-1]
What will be the total interest earned? [Blank-2]
Click here to see answer by CPhill(1959) |
Question 1190340: A trader collects the below information to devise his forex management strategy during the next year:
Spot Rate of USD: INR 74.40
Interest rates in USA: 2.5%
Interest rates in India: 6.5%
1. What is Interest Rate Parity Theory? What will be the expected exchange rate in the above case, if the interest rate parity theory is assumed to hold good. Also calculate the forward premium or discount.
2. What is covered interest arbitrage? If there is a one-year forward contract available at INR 75.60, is there a CIA possible, and if yes, write the steps to earn arbitrage profit (use an equivalent amount of INR 1000000)
Click here to see answer by CPhill(1959) |
Question 1190122: You are inherited 1 million pesos from your grandparents. You planned to invest it for your future. You were offered two options a) 45% of ownership and b)6.5 bond of the fast food chain that we will built in your local area. Illustrate the two option with the different successful rate. Decide which of the two options will benefit you more
Click here to see answer by CPhill(1959) |
Question 1189860: Exercise 1: Alec inherited P1,000,000 from his grandparents. He planned to invest it for his future. He was offered a 45% ownership and the other one is 6.5% bond of the fast food chain that will be built on their local area. Help Alec decide by illustrating to him the two options with the different successful rate.
Click here to see answer by CPhill(1959) |
Question 1189743: How much should an investor be willing to pay now for 10%, 50, 000 bond that will mature in 25 years and pays interest semi-annually, if it wants to make 12% nominal interest compounded semi-annually on a bond
investment.
Click here to see answer by CPhill(1959) |
Question 1189719: Alec inherited P1,000,000 from his grandparents. He planned
to invest it for his future. He was offered a 45% ownership and the other one
is 6.5% bond of the fast food chain that will be built on their local area. Help
Alec decide by illustrating to him the two options with the different successful
rate.
Click here to see answer by CPhill(1959) |
Question 1187605: A mutual fund has a growth rate recorded each year, expressed by the function
๐โฒ(๐ก)=๐(๐ก)=200๐0.04๐ก, 0โค๐กโค10 (in thousands of dollars per year), where ๐ก is the number of years passed from year 1997. The value of the fund in year 1997 is $1,000,000.
a) Determine the function ๐(๐ก) which represents the value of the fund ๐ก years after year 1997.
b) Determine the value of the fund in year 2007.
Click here to see answer by CPhill(1959) |
Question 1186810: Mr. P has a debt of Php5,000 due in five years is to be repaid. Php2,000 now and a second payment at
the end of 6 years. How much should the second payment be if the rate of interest is 6% compounded
quarterly?
Click here to see answer by ikleyn(52781) |
Question 1186435: Tina is buying a new apartment. She can afford a mortgage payment of $1050 a month, and a downpayment of $16000. She obtained a 18 year loan at 8% compounded monthly. What is the most expensive apartment she can buy?
Click here to see answer by ikleyn(52781) |
Question 1186539: An equipment costs 50,000 pesos. It will have an annual operating cost of 20,000 pesos and 5,000 pesos salvage value after 5 years. At an interest rate of 10% per year, the capitalized cost of the equipment is?
Click here to see answer by CPhill(1959) |
Question 1186455: On her recent birthday, April 22, 2001, Nicole was given by her mother a certain sum of money as birthday present. She decided to invest the said amount on 20% exact simple interest. If the account will mature on Christmas day at an amount of P 10,000.00, How much did Nicole receive from her mother on her birthday
Click here to see answer by CPhill(1959) |
Question 1186455: On her recent birthday, April 22, 2001, Nicole was given by her mother a certain sum of money as birthday present. She decided to invest the said amount on 20% exact simple interest. If the account will mature on Christmas day at an amount of P 10,000.00, How much did Nicole receive from her mother on her birthday
Click here to see answer by ikleyn(52781) |
Question 1185918: Gonzalez manufacturing borrowed $21000. , part of the money was borrowed at 8%, part 10% and part 12%. annual interest was $2120 and the total at 8%, and 10% was twice the amount borrowed at 12%. find amount borrowed at each rate using the Gaussian elimination or Gauss-Jordan elimination. Need steps please
Click here to see answer by CPhill(1959) |
Question 1185415: You wish to purchased a house for $200,000 in 12 years. You can invest your money at 5%/a compounded semiannually. How much do you need to invest every 6 months, starting in 6 months, so that you will have $200,000 at the time of your last deposit? (Hint: You need to find the value for "a". )
Click here to see answer by ikleyn(52781) |
Question 1185594: A set of clients are seeking car loan financial advice. They are able to make monthly payments of $350 on a 6-year car loan. You know that the car dealership is able to offer them an annual interest rate of 4%. How large of a loan can they get?
Click here to see answer by ikleyn(52781) |
Question 1185513: The present value of an annuity of R pesos payable annually for 8 years, with the first payment at the end of 10 years, is 187, 481.25. Draw the cash flow diagram and find the value of R if money is worth 5%.
Click here to see answer by CPhill(1959) |
Question 1185511: A 1,200,000 pesos machine was purchased by a company. The said machine has an anticipated economic life of 5 years with a salvage value of 80,000 pesos given that the annual rate of inflation is 7% during the next 5 years. The machine will then be replaced with the same new machine and the company will accumulate the necessary capital by making equal end-of-year deposits in a reserve fund that earns 6% per annum. Determine the amount of actual deposit.
Click here to see answer by CPhill(1959) |
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