Week 10 Assignment Print this out, answer on the papers, then post scans or photographs of the papers. Use this table: Monthly payment per 31,000 initially borrowed Interest rate 15year loan 30year loan 4.0% $7.40 $4.77 4.5% $7.65 $5.07 5.0% $7.91 $5.37 5.5% $8.17 $5.68 6.0% $8.44 $6.00 6.5% $8.71 $6.32 7.0% $8.99 $6.65 7.5% $9.27 $6.99 8.0% $9.56 $7.34 8.5% $9.85 $7.69 9.0% $10.14 $8.05 9.5% $10.44 $8.41 10.0% $10.75 $8.77 10.5% $11.05 $9.15 11.0% $11.36 $9.52 11.5% $11.68 $9.90 12.0% $12.01 $10.29 Each question, or part ofa question, is worth one point. On May 14, 2033, a business takes a 30year loan of $350,000 at an annual interest rate of 11.5%. The rst payment is scheduled for June 14, 2033; the nal payment is scheduled for May 14, 2063. la) Assuming the business makes standard payments for the 30year repayment cycle, what total amount of interest will it have been charged over the course of the loan? (Hint: your rst step will be to calculate the monthly payment of the loan.) 8 $3.amazonaws.com lb) How much will the business owe immediately after making the payment on July 14, 2033? (This is the second loan payment.) Round, if necessary, to the penny. A student takes on S40,000 of debt on August 2 of 2024 at an annual interest rate of 8%. She makes no payments while in school. On February 2, 2027 she prepares to start repaying her debt on a IS-Year repayment cycle, and the payment size is calculated. The rst payment is made in March 2, 2027, the last one on February 2, 2042. 2a) How much money will this person owe as of February 2, 2027? Round up to the nearest penny. 2b) What is the payment size? Round off to the nearest penny. 2c) On March 2, 2027 she nds herself with an extra $725, which she pays (in addition to the regular payment) toward reducing her debt. Assuming she makes standard payments thereafter, what month (and year) will the nal payment be made? 2d) How much interest did she save herself by making the payment in 2c? Round down to the nearest $10. On May 13, 2027, a college graduate takes an interest-only loan of S'80,000 at an annual interest rate of 7%. The rst payment is scheduled for June 13, 2027. On June 13, 2027, instead o_f making the regular-size payment, he pays S7,200. Each month after that he makes the regular payment. 3a) What is the size of the payment made On August 13, 2027? 3b) When will the loan be paid off? 4) Multiple choice: If a borrower owe 520,000 of credit card debt, on which they are charged an annual interest rate of 18%, and they can afford to pay $508 per month, it will take them 5 years to pay off their loan. If they owe S30,000 on the same credit card rather than S20,000, how long will it take to pay off the loan. a) less than 7.5 years b) 7.5 years c) More than 7.5 years but the loan will be paid off eventually d) The loan will never be paid off; they will go bankrupt