A local business borrows $200,000 to purchase property. The loan has an annual interest rate of 8%

Fantastic news! We've Found the answer you've been seeking!

Question:

A local business borrows $200,000 to purchase property. The loan has an annual interest rate of 8% compounded monthly and a minimum monthly payment of $1467.

a. Approximately how many years will it take the business to pay off the loans if only the minimum payment is made?

b. How much interest will the business pay over the life of the loan if only the minimum payment is made?

Related Book For answer-question

Personal Finance

ISBN: 978-0134724713

4th Canadian edition

Authors: Jeff Madura, Hardeep Singh Gill

See More Books

Posted Date: Feb 13, 2023 03:40 AM

See More Questions

Approximately how many years will it take to double a 1000 investment when the average return is 9% per year?
A 30-year mortgage has an annual interest rate of 6.84 percent and a loan amount of $250,000. What are the interest and principal for the 120th payment?
A 30-year mortgage has an annual interest rate of 7.18 percent and a loan amount of $180,000. What are the monthly mortgage payments?
Find RL for maximum power transfer and the maximum power that can be transferred to the load in the circuit in figure. 1 mA 1 kn 2 mA RL 0.5 kn 1 kn 2 mA +)6 V
Consider the two bonds described below: a. If both bonds had a required return of 8%, what would the bonds prices be? b. Describe what it means if a bond sells at a discount, a premium, and at its...
Brent, Matt, Chris, Brad, and Anwer are five unrelated shareholders who each own 20 of the 100 outstanding shares of Aggie Corporation. On June 30 of this year, Aggie distributed $100,000 in cash to...
Using the notation of Exercise 4, assume that $\sum_{i=1}^{n} 1 / r_{i}=1$, but try to find a solution where one of the $\alpha_{k}$ 's is zero. In particular, suppose the segments are ordered in...
Paradise Rides manufactures snowboards. Tom Posney, the CEO, is trying to decide whether to adopt a lean thinking model. He expects that adopting lean production would save $ 87,000 in warehousing...
Current Attempt in Progress Larkspur presented the following data. Net income $5,551,000 Bonds: 10%, $715,000 par value 703,000 Preferred stock: 108,000 shares outstanding. $100 par, 9% cumulative,...
Carrie D'Lake, Reed A. Green, and Doug A. Divot share a passion for golf and decide to go into the golf club manufacturing business together. On January 2, 2015, D'Lake, Green, and Divot form the...
Tasks 4: Matlab code for predicting the average time Goal: Develop a Matlab code that is able to predict the average time that your robot will be able to complete a randomly created maze. You must...
Describe the provider incentives under each of the following reimbursement methods: a. Cost based b. Charge based (including discounted charges) c. Per procedure d. Per diagnosis e. Per diem f....
Of the following statements regarding the producer price index (PPI), which is the least likely? A. The PPI can influence the future CPI. B. The PPI category weights can vary more widely than...
The proposition that the real interest rate is relatively stable is most closely associated with: A. the Fisher effect. B. money neutrality. C. the quantity theory of money.
The characteristic of national consumer price indexes that is most typically shared across major economies worldwide is: A. the geographic areas covered in their surveys. B. the weights they place on...
Briefly describe the typical structure of the finance department within a health services organization.
A. Juarez, Mexico, manufacturer of paint has developed the demand forecast of the next four quarters: Demand Forecast Quarter (in thousands of gallons) 1 2 3 4 380 630 220 160 Based on past...
-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".
You have earned income of $46 000 for 2016. You have a defined-contribution plan to which your employer contributes $4600 in 2016. How much of an RRSP contribution can you make in 2017, assuming you...
Maria, a 22-year-old recent college graduate, wants to retire a millionaire. How much will she need to set aside annually to achieve her goal, assuming she will retire at age 67 and earns an 8...
Over the years, Katrina, 43, has accumulated $400 000 in her RRSP but took a $90 000 withdrawal to build a new home. Calculate the amount of taxes Katrina must pay when she files her tax return if...
Based on Exhibit 1, which statement is most likely correct? A . Company A has below-average liquidity risk. B . Company B has above-average solvency risk. C . Company A has made one or more...
Using the information presented in Exhibit 4, the quick ratio for SAP Group at 31 December 2017 is closest to: A . 1.00. B . 1.07. C . 1.17.
Using the information presented in Exhibit 14, the fi nancial leverage ratio for SAP Group at December 31, 2017 is c losest to: A . 1.50. B . 1.66. C . 2.00.

A local business borrows $200,000 to purchase property. The loan has an annual interest rate of 8%

Question:

Expert Answer:

The detailed answer for the above question is provided below ... View the full answer

Personal Finance

Students also viewed these mathematics questions