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2 years ago

Perry Mazza wants to borrow $40,000 from the bank. The interest rate is 7% and the term is for 5 years.

1 answer:

8 0

The yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.

<h3>How to calculate the annual payments?</h3>

The annual payments can be computed using an online finance calculator as below.

The results show that a total interest of $8,778.15 will be paid by Perry Mazza.

<h3>Data and Calculations:</h3>

N (# of periods) = 5 years

I/Y (Interest per year) = 7%

PV (Present Value) = $40,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $9,755.63

Sum of all periodic payments = $48,778.15 ($9,755.63 x 5)

Total Interest $8,778.15

Thus, the yearly payment amount for a loan of $40,000 at 7% interest and for 5 years that Perry Mazza borrowed is $9,755.63.

Learn more about computing annual payments at brainly.com/question/24576997

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A $ 5000 bond with a coupon rate of 6.7% paid semiannually has eight years to maturity and a yield to maturity of 7.8%. If int

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Explanation:

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3 years ago

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3 years ago

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It’s Levi because it’s clearly written that Levi is a beginner. Hope that works!

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3 years ago

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Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with

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Answer:

Monthly savings= $3,584.42

Explanation:

Giving the following information:

Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $4,600 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

First, we need to find the final value.

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Now, we can calculate the monthly deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

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3 years ago