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Financial Calculator Input

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1. John is planning to use student loans to pay for graduate school tuition starting next year. His tuition will be $25,000 a year for three years. The loan program has an 12% annual rate of interest.
A. If John borrows to pay all of his tuition, how much will he owe at the end of three years, assuming annual compounding?
B. The student loan program will allow John to defer payment on the loan for up to five years after graduation. Interest, however, will continue to accumulate (compounded annually). If John exercises this option for the full five years, how much will he owe by the time he starts paying back the loan?

2. You place $25,000 in a savings account paying monthly compound interest of 6% for three years and then move the balance to another account that pays 9% compounded monthly. How much will you have after 3 more years have passed?

3. What rate of return will you earn if you pay $900 now for three consecutive annual (annuity) payments of $50 and an additional $1,000 at the end of the three years?

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1. John is planning to use student loans to pay for graduate school tuition starting next year. His tuition will be $25,000 a year for three years. The loan program has an 12% annual rate of interest.
A. If John borrows to pay all of his tuition, how much will he owe at the end of three years, assuming annual compounding?

Inputs 3 12 0 - 25,000
Financial button N I PV PMT FV
Output = 84,360

After inputting every number into the financial calculator, press ...

Solution Summary

This solution is comprised of a detailed explanation of how to use financial calculator to calculate for the answer of the finance questions.

$2.19
See Also This Related BrainMass Solution

Mortgage Loans and Monthly Payments

6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments
a) if the interest rate is 16% per year what is the amount of the monthly payment?
Answer: PMT = 1,358.89
b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?
Answer: n = 166
c) if you can pay 1500 per month, need to borrow 100000, and want a 25 year mortgage, what is the highest interest rate you can pay?
Answer: i= 1.482% per mo.

What does the below mean?

- Do not round off the interest rate when computing the monthly rate, or you will not get the same answer reported here.
- You must input PMT and PV with opposite signs.
- You must input PMT and PV with opposite signs.

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