Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) Find the accumulated amount at the end of 10 months on a $2400 bank deposit paying simple interest at a rate of 9%/year. (Round

image text in transcribed

(a) Find the accumulated amount at the end of 10 months on a $2400 bank deposit paying simple interest at a rate of 9%/year. (Round your answer to the nearest cent.) $ (b) An individual purchased a 5-year, $10,000 promissory note with an interest rate of 6.5%/year compounded semiannually. How much did the note cost? (Round your answer to the nearest cent.) $ (c) loan of P dollars over t years with interest charged at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) Find the periodic payment R required to amortize P = 30,000, r = 2, t = 16, m = 12 $ (d) Josh purchased a condominium 5 years ago for $170,000. He made a down payment of 20% and financed the balance with a 30-year conventional mortgage to be amortized through monthly payments with an interest rate of 3%/year compounded monthly on the unpaid balance. The condominium is now appraised at $270,000. Josh plans to start his own business and wishes to tap into the equity that he has in the condominium. If Josh can secure a new 30-year conventional mortgage at the same rate to refinance his condominium based on a loan of 80% of the appraised value, how much cash can Josh muster for his business? (Disregard taxes. Round your answer to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wealth Inequality Asset Redistribution And Risk Sharing Islamic Finance

Authors: Tarik Akin , Abbas Mirakhor

1st Edition

3110583739, 3110583887, 9783110583885

More Books

Students also viewed these Finance questions

Question

7. Why is operations management involved in funds fl ow?

Answered: 1 week ago

Question

How are resources allocated?

Answered: 1 week ago