Share
Explore BrainMass

Loan Table Calculations

Loan Table Calculations. See attached file for full problem description.

1. Your loan $12,000 to your brother-in-law at 10% interest for six months. At the end of 6 months, you calculate how much he owes you and calculate the interest on that amount for the next six-month period. This continues for three years.

Make a table showing how the amount owed increases.

2. Continuing this same process, calculate how much your brother-in-law will owe you 6 years after the loan was made.

1. If $125,000 is invested and receives a return of 8.4% compounded quarterly, what will it be worth in 16 years?
2. Find the Principle that will grow into $1,000,000 in 20 years at 10% compounded annually.
3. I want to set some money aside now so that I will have $60,000 for a down-payment on a house ten years from now. If I can put it in an account paying 9% compounded semi-annually, how much money must I deposit now?
4. A bank loans me $1,000 at 12% compounded monthly. Determine how much I owe them in one year. How much of this is interest? What is the interest of the original loan?
5. If you deposit $100 at 5% compounded annually, how long will it take to double your money?
6. If I borrow money from Jerry he will charge me 10% simple interest.
George will charge me only 9% compounded daily.
Who will charge me the most on a 1-year loan of $10,000?
Who will charge me the most on a 5-year loan of $10,000?

Attachments

Solution Preview

1. Your loan $12,000 to your brother-in-law at 10% interest for six months. At the end of 6 months, you calculate how much he owes you and calculate the interest on that amount for the next six-month period. This continues for three years.

Make a table showing how the amount owed increases.

2. Continuing this same process, calculate how much your brother-in-law will owe you 6 years after the loan was made.

1. If $125,000 is invested and receives a return of 8.4% compounded quarterly, what will it be worth in 16 years?
2. Find the Principle that will grow into $1,000,000 in 20 years at 10% compounded annually.
3. I want to set some money aside now so that I will have $60,000 for a down-payment on a house ten years from now. If I can put it in an account paying 9% compounded semi-annually, how much money must I deposit now?
4. A bank loans ...

Solution Summary

This solution is comprised of a detailed explanation and calculation to answer the loan amount, the present value, the future value, and time of investment.

$2.19