How much money do you give your friend today so that the repayment of $500 in 6 weeks is equivalent to a simple interest loan with a rate of 104% per year?

1. You want to invest in real estate. You decide to buy a house and finance it using a balloon-payment mortgage. This special type of mortgage is designed to “end early,” allowing you to make periodic payments as if the loan were much longer. For example, a “30 due in 5” motgage payment is calculated as if the loan were over 30 years but a total repayment is due at the end of the 5th year. This is the balloon payment and it ensures that the balance at the end of the 5th year is zero (repaid). Real estate investors will sometimes choose this loan because by the time the balloon payment is due the house is sold to someone else, hopefully for a profit.
You buy the house for $180,000 using a “20 due in 6” balloon mortgage with a 11% down payment. The interest rate is 3.5%, compounded monthly.
Part 1: About This Mortgage
A) The initial balance of this mortgage is:_________
B) The number of periods used to calculate the payment is: _________
C) The monthly payment on the mortgage is: ________
D) The balloon payment is due with payment number:_______
2. If you borrowed $6,000 for 8 months at 9% annual simple interest, how much must you repay at the end of the 8 months.
You must pay $_______
3. You have agreed to loan some money to a friend at a simple interest rate of 104% per year. Your friend hasn’t taken this class; all they know is that they can pay you back $500 in 6 weeks.
How much money do you give your friend today so that the repayment of $500 in 6 weeks is equivalent to a simple interest loan with a rate of 104% per year? Round your answer to the nearest dollar. _________
4. If $2,900 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain $60,000.00?
It will take
quarters. (Round to 2 decimal places.)___________