Please anwser question 3. business. Jill must re with a 6 percent ist te 6 perce
ID: 2790921 • Letter: P
Question
Please anwser question 3.
business. Jill must re with a 6 percent ist te 6 percent simple EXERCISES AND PROBLEN 1. Jill Kramer borrowed $25,000 to pay for a start-up the loan at the end of 5 months in one payment w b. How much interest does Jill repay? 2. Joe Jones take for $1,000 to interest rate. a. What is the total amount that Jill must repay in 5 ve Joe's problem nt to his bank to find out how long it will tal d the Prime goes down to 3.5 percent. Al Truistyk owns an exerc upgrade his equipment in order to meet his customers ment costs $275,000 and the lender requires a 10 pe Al must borrow $250,000 and the lender agrees amount to $1,350 at 9 percent simple interest. Solve Joeor$1 e center and needs to 3. The Fed cuts the Federal Funds rate and the Discount ra is customers needs. The percent down paymen a 60-month of Prime plus 4 percent. th fixed princ- a. Construct an amortization table for the first 3 months of this i ve Al a variable rate loan oft b. Instead of a fixed interest loan, the lender gave Al a va prime plus 4 percent. Using the Internet find the cu rate. Construct an amortization table listing Al's interest payments fot the first 3 months of this loan if he borrowed the money o 2013 4. The Smiths purchase a $600,000 house and must sell their old home in order to make a 20 percent down payment plus closing costs of $7,000 on the new house. Currently, they have a mortgage balance of $100,000 dn their old home, which has been annraiExplanation / Answer
1.
Total Interest in five month = $25,000 × 6% × 5 / 12
= $625
Total INterest payment in five month is $625.
Total Repayment in 5 month = $25,000 + $625
= $25,625
Total Repayment in five month is $25,625.
2.
Total Interest = $1,350 - $1,000
= $350.
Total time it take = T
$350 = $1,000 × 9% × T
T = $350 / $90
= 3.89 year.
It Takes 3.89 year.