Mr. Smart borrowed $25,000 from a bank on annuity for 2 years at 10% annual interest...

Mr. Smart borrowed $25,000 from a bank on annuity for 2 years at 10% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows periodic payment, balance, interest payment, payment to principal for each payment as well as total amount which Mr. Smart will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.

Expert Solution

As per the information given above,

Rate of interest (r) = 10%
No. of years (n) = 2
Semi-annual frequency = 2
Loan amount = $25000

The required PMT is computed as under:

PMT = 7050.19

Thus, the PMT is $7050.19

The amortization schedule is as under:

Thus, the total amount to be paid is $28201 including principal and interest.

Workings:

Rahul Sunny answered 2 years ago

3. Mr. Smart borrowed $4,000 from a bank on annuity for 1.5 years at 12% annual...

3. Mr. Smart borrowed $4,000 from a bank on annuity for 1.5 years at 12% annual interest compounded and payable quarterly (every three months). Calculate the semiannual payments and provide a table that shows periodic payment, balance, interest payment, payment to principal for each payment as well as total amount which Mr. Smart will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.

4. Ms. Klein borrowed $10,000 from a bank on annuity for 2 years at 20% annual...

4. Ms. Klein borrowed $10,000 from a bank on annuity for 2 years at 20% annual interest compounded and payable semiannually (every six months). Calculate the semiannual payments and provide a table that shows semiannual payment, balance, interest payment, payment to principal for each payment. Also calculate the total amount which Ms. Klein will pay to the bank for the borrowed amount including interest and principal payments in the entire period of two years.

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity of 30 years.

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity of 30 years. Determine the monthly mortgage payment.

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity...

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity of 30 years. Determine the monthly mortgage payment.

I have borrowed $14,500 from a bank. It is a 5-year interest only loan, with annual...

I have borrowed $14,500 from a bank. It is a 5-year interest only loan, with annual payments. The APR is 8%. What will be my payments each year?

Consider an annuity for 10 years, whose payments vary in geometric progression. An annual effective interest...

Consider an annuity for 10 years, whose payments vary in geometric progression. An annual effective interest rate of 6% is used. Obtain the financial value at t = 29/05/2010 of this annuity considering different cases: Annual payments increasing 3% annually. First payment (€1,650; 29/05/2011). Annual payments increasing 5% annually. First payment (€1,650; 29/05/2011). Monthly payments increasing 0.3% monthly. First payment (€175; 29/06/2010). Monthly payments, constant during the year and increasing 4% annually. First payment (€175; 29/06/2010).

Cooper corporation has borrowed $120,000 from the bank at 8% annual interest rate, compounded monthly. The...

Cooper corporation has borrowed $120,000 from the bank at 8% annual interest rate, compounded monthly. The company plans to pay $2000 per month for the first 12 months, and then pay $2500 per month for the next 12 months. Find the remaining balance of the loan after 24 months. (Answer: $82655.21) Please answer in excel format

Assume you've borrowed 4,000,000 from the bank at 10%. The terms require equal annual installments each...

Assume you've borrowed 4,000,000 from the bank at 10%. The terms require equal annual installments each year for 5 years. What is the amount of those installments? Assume the same facts as the previous question, except assume 10 semi-annual installments. What would be the amount of those installments? Please round your answer to the nearest whole dollar.

Abdullah borrowed from a bank an amount of 12,000 dinars for a period of 4 years at an interest rate of 7%.

Abdullah borrowed from a bank an amount of 12,000 dinars for a period of 4 years at an interest rate of 7%. Find the value of the monthly installment?a. 320 kwdb. 256 kwd

On 1 April 2019, Exotica Ltd borrowed $56,870 from the bank at 10% per annum interest....

On 1 April 2019, Exotica Ltd borrowed $56,870 from the bank at 10% per annum interest. This loan was a secured loan and is was for one year. This loan is repayable in amounts of $5,000 at the end of each month. Required 1. In an excel spreadsheet prepare a journal entry to record the initial mortgage (1 mark). 2. Within the Excel spreadsheet prepare a mortgage schedule for this loan. Round your calculations to two decimal places and the...

Question