How much interest is payable each year on a loan of $2,000 if the interest rate is
Question:
How much interest is payable each year on a loan of $2,000 if the interest rate is 10% per year when half of the loan principal will be repaid as a lump sum at the end of four years and the other half will be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Total Interest 1200 200 in interest is payable each y...View the full answer
Answered By
Diksha Bhasin
I have been taking online teaching classes from past 5 years, i.e.2013-2019 for students from classes 1st-10th. I also take online and home tuitions for classes 11th and 12th for subjects – Business Studies and Economics from past 3 years, i.e. from 2016-2019. I am eligible for tutoring Commerce graduates and post graduates. I am a responsible for staying in contact with my students and maintaining a high passing rate.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Question Posted:
Students also viewed these Business questions
-
As indicated in the All About You feature in this chapter, a student can benefit from financial leverage by borrowing to pay for an education. However, too much leverage can result in graduates...
-
Dunder Mifflin Inc. wanted to expand its manufacturing and sales facilities. The company applied for a loan from First Bank, presenting the prior- year audited financial statements and the forecast...
-
Andrew Peller Ltd. is a leading producer and marketer of quality wines in Canada. Selected information from the companys financial statements for the year ended March 31, 2012, is provided below (in...
-
Convert the ERD below into a Relational Model (Schema List of tables). Specify the Primary and Foreign Keys clearly. id ROLE type id IS A address EMPLOYEE medical details lype name EVIDENCE name...
-
Consider panel (b) of Figure 25-5, in which the ATC curve and associated data are the same-drawn at a slightly different scale, however-as in Figure 25-4. Suppose that the shape of the demand curve...
-
The overarching goal for this problem is to calculate and evaluate trends in key financial performance metrics including RI and ROE. The learning objectives are to analyze Prestiges performance on...
-
The salaries (in thousand dollars) of a sample of 10 employees Find the mean, the median, and the mode of the data, if possible. If any measure cannot be found or does not represent the center of the...
-
Cummings Inc. had the following reconciliation at December 31, 2017: Fair value of plan assets.......................$5,000 PBO...............................................4,200 Funded...
-
Directions and Info for Building 1. Use a program where you can draw and type, like pages, or you can draw this out on a piece of paper and take a picture to submit. 2. You will begin with the...
-
The diagram shows part of a membrane containing a channel protein. Part of the protein molecule is shaded. a. Identify the parts labelled A, B and C. b. For each of the following, state whether the...
-
Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a year (compounded once per year). Thats probably one less pizza per week! But if you contribute...
-
Compare the interest earned by P dollars at i% per year simple interest with that earned by the same amount P for five years at i% compounded annually.
-
In Exercises, you are shown the tangent line to the graph of f (x) = x 2 at the point (a, f (a)). Find a, f(a), and the slope of the parabola at (a, f (a)). y = x 0 Y a y = 2x - 1 X
-
Briefly discuss the following statement: The concept of full disclosure is at variance with window-dressing, and creative accounting.
-
Why are different financial statements needed for Islamic business organisations?
-
When a person in California renews the registration for an automobile, the bar graph shown in Figure 14.24 is included with the bill. Use this bar graph to answer the questions in Problems 18-23. The...
-
In Canada, all of a subsidiarys assets and liabilities are consolidated regardless of the ownership percentage of the parent. Nevertheless, the ownership percentage may affect the amount of the...
-
In 2010 Andy's batting average was better than Dave's; and in 2011 Andy once again beat Dave. Does it follow that Andy's combined 2010-2011 batting average is better than Dave's? Andy AB Hits 2010...
-
Sketch the n = 4 wave function for the potential energy shown in FIGURE EX40.13. U(x) E4 FIGURE EX40.13 8 8.
-
Smiths Family Fashions implemented a balanced scorecard performance measurement system several years ago. Smiths is a locally owned clothing retailer with fashions for men, women, teens, and...
-
Four mutually exclusive projects are being considered for a community gym. The life of equipment in the gym is expected to be 50 years, and the sponsoring agency's MARR is 15% per year. Annual income...
-
In an oil refinery, an equipment is to be installed for the treatment of greenhouse gases and the reduction of emissions. The company requires installing the equipment due to pressure from the...
-
Are you thinking of bypassing a gasoline-fueled car in favor of a hybrid (gasoline and electric) automobile? Let's take a look at the relative economics of your possible choice. The gasoline-fueled...
-
Diaz Company issued $91,000 face value of bonds on January 1, Year 1. The bonds had a 9 percent stated rate of interest and a ten- year term. Interest is paid in cash annually, beginning December 31,...
-
Manvir had to make payments of $1,125 every 6 months to settle a $22,000 loan that he received at 4.52% compounded semi-annually. a. How long did it take to settle the loan?
-
If I invest a single amount of $14,000 in an account earning 8% p.a. compounding quarterly for 5 years, how much interest will I have earned in those 5 years?
Study smarter with the SolutionInn App