Purchase Solution

Loan Table Calculations

Not what you're looking for?

Ask Custom Question

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
Purchase this Solution

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.

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 ...

Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Motivation

This tests some key elements of major motivation theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.