How to have the necessary funds to pay off the loan

Assignment Help Econometrics
Reference no: EM13200993

You borrowed $20,000 from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance. Suppose your payment plan is as follows:

Payment 1: $5,000 two years from now
Payment 2: $7,000 three years from now
Payment 3: $X five years from now

How much money do you need to come up with in year 5 (payment 3) to ensure you have the necessary funds to pay off the loan?

Reference no: EM13200993

Questions Cloud

Define height after t seconds is given by the equation : If an object is propelled upward from a height of 96 feet at an initial velocity of 80 feet per second, then its height after t seconds is given by the equation
Describe null hypothesis that quantities are uncorrelated : Suppose in a random sample of 353 grad student teachers, the correlation between annual salary increases and teaching evaluations is found to be 0.11. Test at the 5% significance level , the null hypothesis that the quantities are uncorrelated.
Demonstrate mathematically that atc and avc are not parallel : Total cost and total variable cost are parallel, yet average total cost and average variable cost are not parallel. Demonstrate mathematically that ATC and AVC are not parallel.
State many people know that the weight of an object varies : Many people know that the weight of an object varies on different planets, but did you know that the weight of an object on Earth also varies according to the elevation of the object?
How to have the necessary funds to pay off the loan : You borrowed $20,000 from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance.
What is the annual equivalent worth of the project : while costs are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of 5 years, what is the annual equivalent worth of the project assuming a MARR of 12%
Determine how to route the posters through the various stage : Kathleen and Lindsey are unsure how to route the posters from one stage to the next to make as many posters as they possibly can at the lowest cost. Determine how to route the posters through the various stages for Graphic Palette to minimize cost..
Role of the organization in ethical decision making : Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry and outline a training plan that will help employees at all levels-from bus boys to kitchen managers-understand and ..
State the quadrilateral is a trapezoid : Suppose that a given quadrilateral is a kite with no right angles. Which of the following is possible? a. the quadrilateral is a trapezoid

Reviews

Write a Review

 

Econometrics Questions & Answers

  What is the effective annual interest rate on car

A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing. The car you like costs $6000. a) What is your effective annual interest rate

  How many days per year use the car to justify purchase

A sales engineer has the following alternatives to consider in touring his sales territory. (a) Buy a new car for $14,500. Salvage value is expected to be about $5000 after 3 years. Maintenance and insurance cost is $1000 in the first year and inc..

  Determine what profit will the monopolist earn

A single producer of both products controls the entire market for beverages in this city and is considering strategies to bundle one bottle of health drink with one bottle of fruit juice. Assume that the marginal cost of supplying both varieties i..

  Determine gdp by both the expenditures and income approaches

Then determine NDP. The Expenditure approach equals out to $361 Billion, the way to find this is to add up all the expenses, and the Income approach equals out to $380 billion and the way to find this part is to add up all the income. With that de..

  Which independent variable has the smallest affect on gpa

It has been hypothesized that overall success for college freshmen as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation i..

  What is the elasticity of demand over the range

Price Quantity demanded $200 1000 150 1400 100 1800 a. If price falls from $200 to $150, what is the elasticity of demand over this range b. As output increases from 1,000 to 1,400 what is marginal revenue

  What percentage of the time would you expect to draw

suppose that you randomly draw a large number of values from the standard normal distribution. what percentage of the time would you expect to draw a value greater than or equal to two?

  Comparative banking assignment on market power

ASB2505-3505 - Comparative Banking Review the theoretical relationships between market structure and bank performance and explain what is meant by market power and how it affects bank performance.

  Explain what happens to the coefficient on coll

Explain what happens to the coefficient on coll in terms of its magnitude and its statistical significance when points , rebounds , and assists are added to the regression. Why do you think this happened?

  Determine what is the price elasticity of demand

The demand for personal computers has been estimated to be Q = 500,000 - 700P +200I - 500S. Assume that per capita income I is $13,000 and the average price of software S is $400. When the price of personal computers is P=$3000,

  Determine the concentration ratio in the industry

There are six companies in the industry. Assume their sales in the year 2006 are as follows, Determine the concentration ratio in the industry

  Would max be as well off as he was before the tax

A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd