help me with these questions on annuities and loan repayments- loan repayments (1 Viewer)

[chooky_girl26]

Can someone please help me with these questions, i've done them lots of times and can't get the answer in the back of the book. Can someone plz help me, plz.

Q1. Jeremy and Patricia spend $15 000 on new furnishings for their home. They pay a 15% deposit on the furnishings with the balance paid in equal monthly instalments at 18% pa. interest over 4 years. Calculate the amount of each monthly repayment.

Q2. Ron borrows $13 500 to purchase a car. The loan is taken out over a 3 year term at an interest rate of 15% pa. Calculate the total repayments made on the loan.

Q3. a. $4000 at 8.4%pa. reducible interest to be repaid over 2 years in equal monthly repayments.

b. $20 000 at 13.2% pa, reducible interest to be repaid over 2 years in equal monthly instalments

c. $60 000 at 7.2% pa. reducible interest to be repaid over 15 years in equal montly instalments

d. $150 000 at 10.8% pa, reducible interest to be repaid over 20 years in equal monthly instalments


Q4. A loan of $12 000 is taken out at 12% pa. reducible interest in equal monthly instalments over 5 years. Total amount of interest paid on the loan is...


Q5. A loan of $75 000 is taken out over 15 years at 9% pa. reducible interest. The minimum monthly repayment is $760.70 Calculate how long it will take to repay the laon at $1000 per month

Q6. A $150000 loan is taken out over a 25 year term. Interest rate is 9.6%pa

a. calculate the minmum monthly repayment.
b. calculate the total repayments on the loan.
c. calculate the length of time that is will take to re[au the loan at $1600 per month.
d. Calculate the total saving on the loan by repaying the loan at $1600 per month?


Could someone plz help me... i've tried over and over again... but am not getting the correct answers..
Thanks

 

[Casmira]

im assuming you used the correct future value / present value equations?

 

[chooky_girl26]

yes i do all correct formua etc are used and the right answers are not being produced

 

[100percent]

for q 1, use pay 15% off. so amount starts from $12750, then you use the formula, i'm not sure if it's compound or simple interest. but thats how you start off.

 

[j_mobey2005]

A little help.

Can someone please help me with these questions, i've done them lots of times and can't get the answer in the back of the book. Can someone plz help me, plz.

Q1. Jeremy and Patricia spend $15 000 on new furnishings for their home. They pay a 15% deposit on the furnishings with the balance paid in equal monthly instalments at 18% pa. interest over 4 years. Calculate the amount of each monthly repayment.

Q2. Ron borrows $13 500 to purchase a car. The loan is taken out over a 3 year term at an interest rate of 15% pa. Calculate the total repayments made on the loan.

Q3. a. $4000 at 8.4%pa. reducible interest to be repaid over 2 years in equal monthly repayments.

b. $20 000 at 13.2% pa, reducible interest to be repaid over 2 years in equal monthly instalments

c. $60 000 at 7.2% pa. reducible interest to be repaid over 15 years in equal montly instalments

d. $150 000 at 10.8% pa, reducible interest to be repaid over 20 years in equal monthly instalments


Q4. A loan of $12 000 is taken out at 12% pa. reducible interest in equal monthly instalments over 5 years. Total amount of interest paid on the loan is...


Q5. A loan of $75 000 is taken out over 15 years at 9% pa. reducible interest. The minimum monthly repayment is $760.70 Calculate how long it will take to repay the laon at $1000 per month

Q6. A $150000 loan is taken out over a 25 year term. Interest rate is 9.6%pa

a. calculate the minmum monthly repayment.
b. calculate the total repayments on the loan.
c. calculate the length of time that is will take to re[au the loan at $1600 per month.
d. Calculate the total saving on the loan by repaying the loan at $1600 per month?


Could someone plz help me... i've tried over and over again... but am not getting the correct answers..
Thanks

Heres a few ones done for you and then you can have another go at the others. Sometimes they do take a few tries!
Q1/ Monthly Repayment =
principal(interest rate multiplyed by the number of years)+principal

4 multiplyed by 12(number of months)​

P=15000- 15%
= $12750
Interest Rate = 18%
=0.18 p.a.
N=4

Therefore Monthly Repayment=
$12750(0.18 multiplyed by 4)+12750, divided by 48

which equals $456.90 ( nearest 5cent).

Q2/ Total Repayments is Interest + Principal

Interest = P(r multiplyed by n)
P=13 500
r= 15%
= 0.15
n=3

therefore total repayments = 13 500(0.15 multiplyed by 3) + 13 500
which equals $19 575.

Hope these are helpful,
Please feel free to contact me if you need anymore help.

Luv Jay
P.S. Hope my working out isn't to confusing!

 

[PC]

Hey Chooky!

Have a look at the answers in the attachment.

Hope this helps.

 

[Casmira]

i was half way into those equations on paper

 

[chooky_girl26]

thanks alots it helped hheeaaapppss