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    The Time Value of Money, Annual Payments and Interest Rates

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    1. How much will my annual payments be on a $15,000 loan at 12% interest, to be paid off in 4 years?

    2. How much will my monthly payments be on a $15,000 loan at 12% interest, to be paid off in 4 years?

    3. How long will it take me to save $13,816.45 if I make annual payments of $1,000 at 7%?

    4. Which of the following provides the greatest effective annual interest rate?
    (a) 9% compounded annually?
    (b) 8.5% compounded quarterly?
    (c) 8% compounded monthly
    (d) 7.5% compouned daily

    5. How much must I pay into my 6% savings account at the beginning of each month to have
    $25,000 in 4 years?

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    https://brainmass.com/business/the-time-value-of-money/the-time-value-of-money-annual-payments-and-interest-rates-587526

    Solution Summary

    This solution shows step-by-step calculations in an Excel sheet to determine the interest of loan payments, annual payments, and situations that provide the greatest effective interest rate.

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