$14,000 loan at 6% compounded monthly is repaid by monthly payments over four years. a. What is...
Question:
$14,000 loan at 6% compounded monthly is repaid by monthly payments over four years.
a. What is the size of the monthly payment?
b. Calculate the principal portion of the 25th payment.
2.)
The dean of the School of Business and Applied Arts at Red River College in Winnipeg wants to establish a scholarship program for the newly created finance major in its business administration stream. He wants to distribute five $2,000 scholarships annually starting immediately. How much money must he raise from college supporters if the perpetuity can earn 3.6% compounded monthly?
3.) A hardware store always advertises a Master designer 75-piece screwdriver set at 80% off for a sale price of $17.99.
If the cost of the set is $10 and expenses are 30% of the sale price, what is the planned profit when the product is on sale?
What profit is earned if the product actually sells at its regular selling price?
Expert Answer:
1 Loan Calculation a To calculate the size of the monthly payment we can use the formula for the mon... View the full answer
