(1 point) Starting on July 1, 2000, Peter borrows $8,000.00 each year for 4 years from...

 

Transcribed Image Text:

(1 point) Starting on July 1, 2000, Peter borrows $8,000.00 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 9 percent compounded semiannually, and he will pay Aunt May back with 18 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007? Answer= (Note: Your answer should include a dollar sign and be accurate to two decimal places) (1 point) Starting on July 1, 2000, Peter borrows $8,000.00 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 9 percent compounded semiannually, and he will pay Aunt May back with 18 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007? Answer= (Note: Your answer should include a dollar sign and be accurate to two decimal places)

Answer rating: 100% (QA)

Total fund borrowed 80004 32000 Pay Back Period 18 Semi Annual Payments Job start date July 1 ... View the full answer