Question
1. A loan is to be repaid over 30 years, with month-end repayments of 7,000. If the interest rate is 6.3% p.a. compounded monthly. Calculate
1. A loan is to be repaid over 30 years, with month-end repayments of 7,000. If the interest rate is 6.3% p.a. compounded monthly. Calculate the loan outstanding balance at the end of 10 years. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)
2. A $11,000 loan is to be repaid with 9 equal half-yearly instalments. Interest is at 8.4%p.a. compounding half-yearly Calculate the principal repaid in the fourth instalment. (use excel; answer to include cents but do not use the comma separator)
3.
Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $200 quarterly, with payments made at the beginning of each quarter, over the next 6 years. How much can he spend on his boat today if the interest rate is 12.1% per annum compounded quarterly?
a.
$3480.19
b.
$819.96
c.
$919.17
d.
$3378.00
4.
Jill is wishing to accumulate $19,000 for a renovation in 5 years time. To do this, she will make 20 deposits (quarterly) with the first deposit today. If she can earn 14.7% per annum compounding quarterly, what regular deposit will be needed? (round to nearest cent; dont use $ sign or commas)
a.
$2471.48
b.
$1352.60
c.
$636.48
d.
$659.87
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