Please answer all the following questions. This is Business Math I, first year m
ID: 2717941 • Letter: P
Question
Please answer all the following questions. This is Business Math I, first year math for business.
Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.Payments of $2000 and $3000 months were made after four months and nine months, respectively. At the end of one year, Sheridan Service borrowed an additional $4000. Six months later, the line of credit loan was converted into a collateral mortage loan. What was the amount of the mortgage loan if the line of credit interest was 9% compounded monthly? A $2800 promissory note issued without interest for five years on September 30, 2015, is discounted on July 31, 2018, at 8% compounded quarterly. Find the compound discount. On April 15, 2019, a 10-year note dated June 15, 2014, is discounted at 10% con pounded quarterly. If the face value of the note is $4000 and interest is 8% compounded quarterly, find the compound discount. A financial agreement requires the payment of $1200 in 9 months, $1400 in 18 months, and $1600 in 30 months. When would an alternative single payment of $4000 have to be made if money is worth 7% compound e quarterly? LO_23 Compute the effective annual rate of interest for 6% compounded monthly; at which $1100 will grow to $2000 in seven years if compounded monthly.Explanation / Answer
14 ) Initial loan amount = 6000
Interest rate = 9%
Amount of loan after 4 month, interest compound monthly = 6182
Less: repayment = 2000
Balance amount of laon after 4 month = 6182-2000 =4182
Amount of loan after 9 month, interest compound monthly = 4341
Less: repayment = 3000
Balance amount of laon after 4 month = 4341- 3000 =1341
Amount of loan after 12 month, interest compound monthly = 1371.4
Add- additional loan = 4000
Balance amount of laon after 12 month = 1371.4+4000 = 5371.4
Amount of loan after 6 month, interest compound monthly which converted into mortgage loan = 5575.87
12) compund fv = face value ([+ (r/m)]m*n
= 2800 [1+ (.08/4)]*4*3
= 3551
Compound discount = 3551 -2800 = 751