# Mathematics - Interest and Loan Repayment

Please see the attached file for the fully formatted problems.

1.21) Geometric Series- Intro to Finance

10

∑ 500

I=1 1.12 * 2825.11

TOPIC: TIME VALUE OF MONEY INTRO TO FINANCE

2.34)

Suppose you put$250 at the beginning of every month into savings that credits interest at the annual rate of 6% per annum, but compounds it monthly. Find the amount in this account after 25 years.

*$174,114.73

2.48)

Adana Corporation is interested in buying a building for $500,000 in cash or it may pay for it in 50 monthly installments of $12,000 each. If the cost of capital for Adana's is 9%, which method should it use?

? Installment- show work for answer

2.50)

Akron Corporation has borrowed 1 million from Canton Bank with the understanding that Akron will pay the loan back in 12 monthly installments of $90,000 each. Find the annual rate of interest charged by the bank.

* 14.54%

https://brainmass.com/math/algebra/mathematics-interest-and-loan-repayment-258206

#### Solution Summary

Complete, Neat and Step-by-step Solutions are provided in the attached file.

Math of Finance Monthly Payments

You find a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that the best interest rate of 9% intersest that compounds monthly for seven years.

1. What is the monthly payment for this loan? Show the formula used and the values used for each variable to calculate the monthly payment.

2. What is the unpaid balance of the loan at the end of the 1st year? Show the formula that was used and the values used for each variable to calculate the unpaid balance at the end of the first year.

3. What is the unpaid balance at the end of the 6th year? Show the formula that was used for each variable to calculate the unpaid balance at the end of the 6th year.

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