Owing to its increasing popularity, Parker's Patisserie (Quebec, Canada) is aiming to open a second branch...

 

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Owing to its increasing popularity, Parker's Patisserie (Quebec, Canada) is aiming to open a second branch in 4 years and will require $250,000 for the initial setup. They're considering placing $175,000 in a savings account offering 8.75% interest, compounded twice a year. Will they gather the necessary amount to launch the new branch in 4 years? If they fall short, determine the lowest interest rate the patisserie should seek to reach their 4-year financial target. If the patisserie decides to add an additional $25,000 to the initial investment, how will this affect the final amount after 4 years at the same interest rate? How much would the patisserie need to deposit initially if they aim for the savings to grow to $275,000 instead of $250,000 at the same interest rate and time period? What would be the total amount in the account after 4 years if the interest was compounded quarterly instead of semi-annually at the same rate? (25 Points) The monthly payment necessary to clear (or settle) a car loan can be determined using AR P . In the formula, P represents the payment amount, A stands for the initial loan 1-(1+R) -nt amount, t is the loan's duration in years, R is the yearly interest rate, and n is the number of payments each year. Determine the monthly payment needed to settle a $125,000 car loan with an annual interest rate of 5.5% over a 30-year period. a. How much total interest will be paid over the life of the loan? b. If the loan is paid off in 20 years instead of 30, how much would the monthly payment be? C. How would the monthly payment change if the interest rate were to increase by 1%? d. If one decides to make quarterly payments instead of monthly, what would be the amount of each payment? Owing to its increasing popularity, Parker's Patisserie (Quebec, Canada) is aiming to open a second branch in 4 years and will require $250,000 for the initial setup. They're considering placing $175,000 in a savings account offering 8.75% interest, compounded twice a year. Will they gather the necessary amount to launch the new branch in 4 years? If they fall short, determine the lowest interest rate the patisserie should seek to reach their 4-year financial target. If the patisserie decides to add an additional $25,000 to the initial investment, how will this affect the final amount after 4 years at the same interest rate? How much would the patisserie need to deposit initially if they aim for the savings to grow to $275,000 instead of $250,000 at the same interest rate and time period? What would be the total amount in the account after 4 years if the interest was compounded quarterly instead of semi-annually at the same rate? (25 Points) The monthly payment necessary to clear (or settle) a car loan can be determined using AR P . In the formula, P represents the payment amount, A stands for the initial loan 1-(1+R) -nt amount, t is the loan's duration in years, R is the yearly interest rate, and n is the number of payments each year. Determine the monthly payment needed to settle a $125,000 car loan with an annual interest rate of 5.5% over a 30-year period. a. How much total interest will be paid over the life of the loan? b. If the loan is paid off in 20 years instead of 30, how much would the monthly payment be? C. How would the monthly payment change if the interest rate were to increase by 1%? d. If one decides to make quarterly payments instead of monthly, what would be the amount of each payment?