Brent Pickett borrowed $4000 from his brother Dave. He agreed to repay the money at the end of 2 years, giving Dave the same amount of interest that he would have received if the money had been invested at 2.75% compounded quarterly. How much money did Brent repay his brother? ..... Brent repaid his brother $ (Round to the nearest cent as needed.)
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- Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: • The bank owes Sam $100 per year forever. The 1st payment is due in 1 year. • The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X. A B с D E 3,330 3,350 3,400 3,450 3,500Two years ago, Paul borrowed $10000 from his sister Gerri to start a business. Paul agreed to pay Gerri interest for the loan at the rate of 4% /year, compounded monthly. Paul will now begin repaying the amount he owes by amortizing the loan (plus the interest that has accrued over the past 2 years) through monthly payments over the next 5 years at an interest rate of 3% /year compounded monthly. a) Find the size of the monthly payments Paul will be required to make. b) Find the outstanding principal at the end of 3 years. (Using formula)Louie borrowed $2,000 from Phil. Under this agreement, Louie would repay with $1,300 at t = 1 and $1,700 at t = 4 where time is given in years. Louie successfully made the payment in full at t = 1, but he faced some financial difficulty and was only able to pay 60% of what he owed at the time of the second payment. a. What was the annual interest rate (as a percent) for the original loan? b. What is Phil's annual yield (as a percent) for this four-year period?
- Carl borrowed P183,074 from his friend to pay for remodeling work on his house. He repaid the loan 14 months later with simple interest at 4.38%. His friend then invested the proceeds in a bank for 7 years paying 6.63% compounded quarterly. How much will his friend have at the end of the 7 years?Write your answer in two decimal places.Mark borrowed an amount of P8,830 from Brian and after 2 years, he borrowed again an amount of P2,750. He paid P3,600 one year after the last borrow, P2,450 the following year, and P1,800 the next year after. If the money is worth 9.45% compounded semi-quarterly, determine the following: 1. Amount he should pay 7 years after the last borrow to discharge all his debts. 2. Amount he should pay as a single lump sum at the end of 6th year to discharge all his debts.Andy borrowed P9000 from Randy today and P12000 two years after and made a partial payment of P7000 one year after. It was agreed that the balance of the loan would be amortized by two payments on the 4th and 5th year from the start of transaction, the second being 50% larger than the first, if the interest rate is 12%, what is the amount of each payment?
- John borrowed P4500 cash from his friend. His friend’s condition is that he must pay his debt in 2 years with an interest of 3% one time payment only. However, john plans to set aside an amount of money in his piggy bank every 3months with an interest of 4% compounded quarterly until he can accumulate the total debt and pay it one time to his friend. How much money must John set aside every 3months? ANSWER:A = ₱559.39958. Your brother-in-law borrowed $2,000 from you 4 years ago and thendisappeared. Yesterday he returned and expressed a desire to pay back the loan,including the interest accrued. Assuming that you had agreed to charge him 10%annual interest and he wishes to make 5 equal annual payments beginning one yearfrom now, how much will he need to pay you annually in order to pay off thedebt? (Assume that the loan continues to accrue interest at 10% per year.)Miller invested P15,250 for 10 years and received P9,150 in simple interest. What was the rate of that investment? Nick borrowed P6000 at 9% simple interest fro 1 ½ years to repair his rice threshing-machine. Find the simple interest, future value, and equal monthly installments? Benjamin deposited P600 in a saving account that pays 4% simple interest. How long did it take for his deposit to earn an interest of P72. What amount was invested for 5 years at 2 ¼ % if it earned interest of P2,500? At what interest rate will P15,000 earn an interest of P2,500 at 1.8%?
- Mark borrowed an amount of 10,865 from Brian and after 3 years, he borrowed again an amount of 7,750. He paid 2,885 one year after the last borrow, 4,056 the following year, and 3,414 the year after. The money is worth 11.528% compounded semi-quarterly. a) what ammount should he pay as an equivalent single lump sum at the end of 8 years to discharge all his debt? b) what amount should he pay at year 8, 9 and 10 equally discharge all his debts?(a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to repay the debt in 2 years at 7% per annum, simple interest. How much should Heather repay her grandmother? (b) How much must Jason deposit in a special account paying interest at the rate of 9.5% to receive $75.21 in interest after 6 months? (c) An investment of $4500 gained $337.50 in intesest in 9 months. What rate of yearly intesest did the investment pay?Using the image attached answer 3, and 4 below. 3) Isaac invested $77.000 in an account paying an interest rate of 4.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent. would be inthe account after 12 years? 4) Evan is going to invest in an account paying an interest rate of 5.4% campounded annually. How much would Evan need to invest, to the nearest dollar, for the value of the account to reach $1,360 in 5 vears.