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alekssr [168]
4 years ago
12

Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Ly

nn at the end of 8 years with 6% interest compounded semiannually. How much will Lynn receive at the end of 8 years?
Business
2 answers:
Juliette [100K]4 years ago
8 0

Answer:

Lynn will receive $63,754 at the end of 8 years.

Explanation:

Future value is the sum of value of principal invested and compounded return received over the investment period.

Using following formula of future value to calculate the required interest rate.

FV  = PV x ( 1 + r )^n

PV  = Present value = $40,000

n = number of years = 8 years

r = Interest rate = 6%

FV = Future value = ?

FV  = $40,000 x ( 1 + 6% )^8 = $63,754

tester [92]4 years ago
5 0

Lynn Ally owner of a Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 8 years with 6% interest compounded semiannually. How much will Lynn receive at the end of 8 years?

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An unexpected frost in the orange groves of California would causea. a decrease in the supply of orange juice, increasing the eq
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a buyer's willingness to pay for a good plus the price of the good. the amount by which the quantity supplied of a good exceeds
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Read 2 more answers
Calculate the monthly payment for a 5-year car loan of $23,570 at 10. 43% interest, compounded monthly. A. $247. 44 b. $337. 56
Phoenix [80]

The monthly payment for this car loan is equal to: D. $505. 79.

<u>Given the following data:</u>

  • Time = 5 years
  • Principal = $23,570
  • Interest rate = 10.43%

To calculate the monthly payment for this car loan:

Mathematically, the monthly payment on a loan is given by this formula:

M = \frac{P(\frac{r}{12})(1 \;+\; \frac{r}{12})^{12t}}{(1 \;+ \; \frac{r}{12})^{12t} -1}

<u>Where:</u>

  • P is the principal or amount borrowed.
  • r is the interest rate.
  • M is the monthly payment.
  • t is the number of years.

Substituting the given parameters into the formula, we have;

M = \frac{23570(\frac{0.1043}{12})(1 \;+\; \frac{0.1043}{12})^{12 \times 5}}{(1 \;+\; \frac{0.1043}{12})^{12 \times 5}\; -\;1}\\\\M = \frac{23570(0.008692)(1 \;+\; 0.008692)^{60}}{(1 \;+\; 0.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.008692)^{60}}{(1.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.6808)}{1.6808\; -\;1}\\\\M = \frac{344.34}{0.6808}

Monthly payment, M = $505.79

Read more: brainly.com/question/16992474

4 0
2 years ago
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