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- 4.3 You decide to put R12,000 in a money market fund that pays interest at the annual rate of 8.4%, compounding it monthly. You plan to take the money out after one year and pay the income tax on the interest earned. You are in the 15% tax bracket. Find the total amount available to you after taxes.You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan.a) What is the amount of the payment? $814.24. b) What is the outstanding principal after 7 years? $94,634.01c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $4,410 PLEASE ONLY SOLVE FOR D OTHER ANSWERS ARE ALREADY SOLVED. d) If the bank charges 3.5 points on the loan, what is the true interest rate?1. a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? 1. b) You have Rs.25, 000 which you deposited in a bank account, bank promised to pay you back Rs.75, 000 after 8 years. What rate offered by bank? 1. c) You borrowed Rs.500, 000 at 18% for five years. Part a) How much you will pay each year to settle this loan? Part b) If you decided to settle this loan after two years, what additional amount you will pay at the end of two years to fully payback this loan while bankis not imposing any fine on you?
- If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end up paying? O 6.77% O 5.25% O 9.67% 8.33%You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 4.5% interest for the rest. After 14 years, you decide to pay off the entire loan.a) What is the amount of the payment? b) What is the outstanding principal after 14 years?c) If the bank charges 3.5 points on the loan, what is the amount charged for points?d) If the bank charges 3.5 points on the loan, what is the true interest rate?You want to buy a $170000 home. You plan to pay $51000 as a down payment, and take out a 15 year loan at 5.25% interest for the rest. After 6 years, you decide to pay off the entire loan.a) What is the amount of the payment?$ b) What is the outstanding principal after 6 years?$c) If the bank charges 2 points on the loan, what is the amount charged for points?$d) If the bank charges 2 points on the loan, what is the true interest rate?$ TVM SOLVER
- You want to buy a $140000 home. You plan to pay $14000 as a down payment, and take out a 20 year loan at 4.75% interest for the rest. After 7 years, you decide to pay off the entire loan. a) What is the amount of the payment? b) What is the outstanding principal after 7 years? c) If the bank charges 3.5 points on the loan, what is the amount charged for points? $ d) If the bank charges 3.5 points on the loan, what is the true interest rate?You want to buy a $195,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 5.35% interest for the rest. The bank will charge 1.5 points on the amount financed.a) What is the amount of the down payment?$b) How much is the loan amount going to be?$c) What will be the amount charged for 1.5 points?d) Find the amount of the monthly payment.PLEASE ANSWER THESE 2 QUESTIONS BARTLEBY. THANKYOU 1. If you accumulated P 70,700.00 from an investment of P 10,005.00 in 240 months, what is the rate of simple interest? 2. Your friend made an investment of P 45,000.00 for 60 days at 15% simple interest. If withholding tax is 20%, what is the net interest that he will receive at the end of two months?
- 1. Calculate the future value of $9,000 invested (single amount) for ten years in an account with an APR of 6.3%. (Do not round interest rates.) a. If compounded annually? Future value = P (1+r)t 9,000(1+0.063)¹⁰= b. If compounded semiannually? c. If compounded monthly? d. Given equal rates, time, and investment amount, what effect does the frequency of compounding have on future values? What effect does the frequency of discounting have on present values? 2. Determine the rate that would be earned on a $25,000 investment if $100,000 is paid back in 25 years. Based on your answer, what factors would you consider in whether to invest or not. 3. A company has a $400 million liability that is due in 20 years. If the relevant discount rate is 5.25 percent, what is the present value of the liability? 4. What is the present value of an investment that will pay you $75 per year forever if the appropriate rate of return is 3%?You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year loan at 3.75% interest for the rest.a) What is the amount of the payment?$b) If the bank charges 2 points on the loan, what is the amount charged for points?$c) If the bank charges 2 points on the loan, what is the true interest rate?$ TVM SOLVERYou want to buy a $280000 home. You plan to pay $56000 as a down payment, and take out a 15 year loan at 3.5% interest for the rest. a) What is the amount of the payment? b) If the bank charges 3 points on the loan, what is the amount charged for points? c) If the bank charges 3 points on the loan, what is the true interest rate?