Question: 1. Henry borrows $2000 from a bank and repays it in four equal monthly instalments. If interest is charged at 24% p.a., compounded monthly, find

1. Henry borrows $2000 from a bank and repays it in four equal monthly instalments. If interest is charged at 24% p.a., compounded monthly, find a) the monthly instalment and b) the total amount and interest paid

2. To provide for the purchase of a car, Alexis deposits $1200 at the end of every quarter into an account earning 12% p.a. compounded quarterly. a) How much does Alexis have at the end of four years? b) How much more does she need to save before she can buy a car costing $25 000? c) Will she have enough for this car if she saves for four and a half years?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please read the case study victor Lenac shipyard (VL). Please prepare a report that will answer the following questions (please upload the report and the excel spreadsheet): 1. What problem does...

fast and i will like SECTION B Note : Attempt all questions. Illustrate your answers with the help of appropriate working notes and calculations. Each question carries five marks. (15M) 6. Henry...

6. Henry borrows $2000 from a bank and repays it in four equal monthly instalments. If interest is charged at 24% p.a., compounded monthly, find a) the monthly instalment and b) the total amount and...

Business Mathematics Question 5 (a) Eighteen months ago, Aishah deposited RM1500 in a savings account earning 5% interest compounded semi-annually. At the same time, she deposited RM150 at the end of...

Question 5 (a) Eighteen months ago, Aishah deposited RM1500 in a savings account earning 5% interest compounded semi-annually. At the same time, she deposited RM150 at the end of every month in...

1.Following the closing of the Trial Balance, the accounting staff carried out a stocktaking exercise and the unsold stock for the month of January amounted to $620,000. Mr. Blake has asked that you:...

1. Find the future value of an annuity due if #800 is paid into an account at the beginning of each month for 5 years at a rate of interest of 5%% p.a. compounded monthly. Find the present value of...

i need help with the individual ledger accounts Justin Blake operates a Tyre Store on Lakewood Drive. He is the sole owner of the business. He entered into a lease arrangement for a year for the...

Jack Blake operates a car parts store on Woodlake Drive called Parts Galore. He is the sole owner of the business. He entered into a lease arrangement for a year for the rental of business premises....

i need help creating the individual ledger accounts in T accounts Justin Blake operates a Tyre Store on Lakewood Drive. He is the sole owner of the business. He entered into a lease arrangement for a...

UCD (U.S. based MNC) will receive 250,000 euros in one year. The spot exchange rate today is $1.20 per euro. It observes that 1. The one-year interest rate for euros is 8%, and the one-year interest...

How should a company select its projects?

The measure of beta associates most closely with: systematic risk risk - free return uneqpected riak. uncystematic risk

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...