If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years,
how much is the annual interest?
How much is the total amount of interest paid during the life of the loan? Assume that only the interest is paid annually, and the principal is repaid at the end of three years.
A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund to have this money available in five years. How much should the quarterly deposits be if the fund earns 8%? Use MS-Excel to illustrate the accumulation of funds over the five year period.
Friendly Auto offers Jennifer a car for $2000 down and $300 per month for 5 years. Jason wants to buy the same car but wants to pay cash. How much must Jason pay if the interest rate is 9.4%? (Hint: What is the present value of $300 at 9.4% plus $2,000 paid now?)
In 1970, an average house in Cupertino cost $41,000.
If the average house appreciates in value at 3.3% annually for the past 18 years, what is the price of that house in 1987?
Suppose that your property tax was $250 and has increased by 3.5% annually, how much property tax would you have paid over the last 18 years for the house.
Suppose further that your maintenance expense during the first year was $200 and has increased steadily by 2.5% annually, prepare a table (Using MS-Excel), that shows, by year, the value of your house, the annual maintenance expense and your property tax and then your profit, if you sell the house in 1987. Assume that the annual change in property tax is determined at the end of the year and then spread through the following year.
The Gomez Company Inc bought a machine for $175,000. They paid 20% down and amortized the rest at 11.2% over a 3-year period.
The post If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, appeared first on blitzarchive.com.