Question 1 (1 point)
1 answer:
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Answer:
Monthly payments=$418.14
Total amount will be=down payment + 48×$418.14
$14000+$20070.84=$34070.84
Step-by-step explanation:
Loan payment per month=Amount to pay÷discount factor
Mathematically P=A÷D
where D is the discount factor calculated using the formula;
where i=periodic interest rate=annual rate divided by number of payment periods
A is the amount to pay after downpayment
P is the loan monthly payment amount
n=number of periodic payments=payments per year times number of years
⇒In this question you find the discount factor then divide the amount remaining to pay with the discount factor to get monthly payments
Given;
Cost of boat=$32000
Down payment=$14000
Loan to pay=$32000-$14000=$18000
Annual rate=5.5%=i=5.5%÷12=0.458%⇒0.00458
Periodic payments, n=4×12=48
Finding the discount factor D;
To get the amount to pay monthly divide the loan to pay with the discount factor
Monthly payments=$418.14
Total amount will be=down payment + 48×$418.14
$14000+$20070.84=$34070.84
An Investment of $10,000 yields 8% interest compounded quarterly. The accumulated capital after 6 months is $10,404. The accumulated capital after 5 years is $14.859.47
From the information given;
- The principal amount of investment = $10,000
- Interest Rate = 8% = 0.08
- number of times it get compounded = 4
a. we are to determine the amount of the accumulated capital after 6 months.
- i.e. when time (t) = 6 months.
Now, using the formula for calculating the amount value of the accumulated capital:
A = $10,404
b. we are to determine the amount of the accumulated capital after 5 years
- i.e. when time (t) = 5 years
A = $14859.47
Therefore, we can conclude that the accumulated capital after 6 months is $10,404 and the accumulated capital after 5 years is $14859.47
Learn more about compound interest here: