A lifetime cap is the maximum upper limit interest rate allowable on an adjustable-rate mortgage.
Answer:
The yearly value of the card 25 years later is $16.93.
Step-by-step explanation:
You can use the following formula to find the future value:
FV=PV(1+r)^n
FV= future value
PV= present value= 5
r=rate= 0.05
n=number of periods of time= 25
Now, you can replace the values in the formula:
FV=5(1+0.05)^25
FV=5(1.05)^25
FV=16.93
According to this, the answer is that the yearly value of the card 25 years later is $16.93.
Answer:
The monthly payment is $241.76.
Step-by-step explanation:
Given : Suppose you take out a car loan for $9999 for 4 years at a 7.5% interest rate.
To find : What is your monthly payment ?
Solution :
The formula to find monthly payment is
Discount factor is
Substitute in the formula,
where, A is the amount A=$9999
r is the rate =7.5%=0.075
time t=4 years
Time in months
Substitute all the values in the formula,
Therefore, the monthly payment is $241.76.