Question
Mystic Resort owes $150,000 at 9% c.s.a. for 4 years due in 6 months. This debt is commuted into a payment of X due in
Mystic Resort owes $150,000 at 9% c.s.a. for 4 years due in 6 months. This debt is commuted into a payment of X due in 1 year and a payment of $100,000 due in 2 years. Find X. Show all your work. Set N.R. at 9% c.m..
At the end of his schooling, Molly owes $14,000 in student loans. A repayment schedule is set up with a bank with the interest rate set at 4% c.m. over 10 years and monthly payments of $141.74
a) For tax purposes, interest paid on student loans may be used as a tax deduction.
How much interest is paid in the first year of the loan?
b) If Molly paid $200 per month instead of $141.74, calculate the final payment and interest savings.
Kelly buys a new kitchen set for $3,400 paying $600 down and the remainder in equal monthly payments over 2 years at 7.75% c.a.
Calculate the monthly payment and the total interest charge.
Step by Step Solution
3.43 Rating (166 Votes )
There are 3 Steps involved in it
Step: 1
Expert Answer This solution was written by a subject matter expert Its designed to help s...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started