Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount. $400,000, original APR 4.1%, 1 point with a 0.2% discount.

Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount. $1,000,000, original APR 4.45%, 2 points with a 0.215% discount per point.

Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount. a. $280,000, original APR 4.18%, 1 point with a 0.2% discount b.$350,000, original APR 2.95%, 2 points with a 0.275% discount per point. c. $600,000, original APR 4.6%, 3 points with a 0.225% discount per point d.$450,000, original APR 3.75%, 1 point with a 0.3% discount e. $2,000,000, original APR 3.55%, 2 points with a 0.235% discount per point.

Rhonda wants to take out a 30-year, $280,000 loan with a 4.4% APR. She is considering purchasing 2 points, which will decrease her APR by 0.125% per point. Each point will cost 1% of her loan. Compare her monthly payments with and without the purchase of the points.

J.P. has been offered a 20-year, $350,000 loan with a 3.9% APR. If he purchases 1 point, his APR will reduce to 3.7%. How much will his monthly payment savings be?

Alena wants to take out a $600,000 loan to purchase a new waterfront home. The bank offers a 30-year loan with an APR of 4.15%. If she purchases one point for 1% of the value of the loan, she will reduce her APR by 0.3%. a. What is her monthly savings with the point purchase? b. When will she break even?

The Fort House Tea Room borrowed $17,500 for renovations at a simple interest rate of 6.85% for 4 years. The interest is to be paid annually. Find the amount of each annual interest payment.

Suppose an amount P is invested at an interest rate r and A is the amount after t years.

(a) Write an expression for $A$ if the interest is compounded $n$ times per year.

(b) Write an expression for $A$ if the interest is compounded continuously.

Find the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year.

$10,000 bond with coupon rate 5.4% that matures in 12 years; current interest rate is 6.5%.

Assume federal debt reaches about $\$ 20$ trillion in $2017$.

If interest rates remain at the $2012$ level of $2.1 \%$, find the interest payment on the debt. Discuss the change in the interest payment with a $1$-point increase in the interest rate.

Find the monthly payment, amount paid, and interest charged for a $90,000 mortgage loan at an annual interest rate of 10% for 20 years.

All rates of interest given here are annual rates. Calculate the rate of interest per year which will earn the given amount of interest: a) Principal $400 time 4 years interest$112, b) Principal $800 time 7 years interest$224

Bill Rich signed a 180-day note for $1,250. He repaid the loan when due with interest at an annual rate of 12 % using a banker's year.

Kelly Bullock borrowed$4,800 for 6 months and paid $264 interest. What rate of interest did she pay?

Suppose you deposit in dollars at the beginning of every month in a savings account that earns a monthly interest rate of r which is the annual interest rate divided by 12 (for example, if the annual interest rate is 2.4%, r=0.024 /12=0.002). For an initial investment of m dollars, the amount of money the your account at the beginning of the second month is the sum of your second deposit and your initial deposit plus interest, or m + m(1 + r). Continuing this fashion, it can be shown that the amount of money in your account after n months is $A_{n}=m+m(1+r)+\cdots+m(1+r)^{n-1}$. Use geometric sums to determine the amount of money in your savings account after 5 years (60 months) using the given monthly deposit and interest rate. Monthly deposits of $250 at a monthly interest rate of 0.2%.