How much principal is there in each annual payment

Assignment Help Microeconomics

Reference no: EM131505613

Question: 1. What is the future equivalent of $1,000 invested at 6% simple interest per year for 3½ years?

2. Jonathan borrowed $10,000 at 6% annual compound interest. He agreed to repay the loan with five equal annual payments at end-of-years 1-5. How much of the annual payment is interest, and how much principal is there in each annual payment?

Reference no: EM131505613

Questions Cloud

What are consequences of medias portrayal of social class : Discussion- What are the consequences of the media's portrayal of social class or gender inequality in American society?

Compare karl marxs and max webers theories of social class : Compare and contrast Karl Marx's and Max Weber's theories of social class. Explain which theory you think is more accurate and why.

How much will your investment be worth in given years : The interest rate on short-term German bonds is -0.1%. Explain how this is possible and what it means.

Create a report by compiling and reviewing all your document : Create a report by compiling and reviewing.Describe the organization in which the service learning took place, including its policies, procedures, and services.

How much principal is there in each annual payment : What is the future equivalent of $1,000 invested at 6% simple interest per year for 3½ years?

How do physical actions bring out the persons personality : Discussion- Most Unforgettable Person- How do the physical description, actions, and dialogue bring out the person's personality?

Show that the given equation relationship is true : You borrow $500 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest.

Analyze the style and situational approaches to leadership : Describe and analyze the Style and Situational approaches to leadership. Contrast the two styles and identify best use case for each of the styles.

Develop a plan to reduce driving under the influence : Develop a plan to reduce driving under the influence. The plan could include educational, legislative, and community support; and social advertising.

User Account

All Pages