Question
In: Finance
You plan to take a personal loan of Rs.50,000 at a rate of 12% per annum...
You plan to take a personal loan of Rs.50,000 at a
rate of 12% per annum to buy a computer. The loan is to be paid in
5 equal quarterly installments, the first of which is to be paid at
the time of buying and rest four at end of each quarter
henceforth.
a)
What is the installment amount?
(2)
b)
Prepare the amortization schedule.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You plan to take a personal loan of Rs.50,000 at a rate of 12% per annum...
You plan to take a personal loan of Rs.50,000 at a rate of 12%
per annum to buy a computer. The loan is to be paid in 5 equal
quarterly installments, the first of which is to be paid at the
time of buying and rest four at end of each quarter henceforth.
What is the installment amount?
Prepare the amortization schedule.
Assume the bank’s borrowing rate is 2% per annum. A business applies for 12 million loan...
Assume the bank’s borrowing rate is 2% per annum. A business
applies for 12 million loan for a project and plans to repay the
loan in one year. A loan officer estimates the payoff from the
project will be 30 million with 70% probability and 10 million with
30% probability. If a loan defaults, on average, a bank can get 60%
of the salvage value. If the bank requires 3% return on its loans,
what would be the loan rate?
You approach ABC Bank for a loan. They offer a rate of 5.40 percent per annum...
You approach ABC Bank for a loan. They
offer a rate of 5.40 percent per annum on a mortgage amount of
$750,000 over 22 years, with installments payable at the end of
each month (Hint: the last installment will pay off the
mortgage).
A rival Neobank named Big Loan Ltd
offers a rate of 5.10% per annum however with fortnightly
installments, on the same amount with the same term of maturity of
22 years.
a) Calculate the loan installment payments...
You approach ABC Bank for a loan. They offer a rate of 5.40 percent per annum...
You approach ABC Bank for a loan. They
offer a rate of 5.40 percent per annum on a mortgage amount of
$750,000 over 22 years, with instalments payable at the end of each
month (Hint: the last instalment will pay off the mortgage).
A rival Neobank named Big Loan Ltd
offers a rate of 5.10% per annum however with fortnightly
instalments, on the same amount with the same term of maturity of
22 years.
a) Calculate the loan instalment payments under...
Assuming a personal loan of $50,000 at an interest rate of 8.50 %, amortised over 5...
Assuming a personal loan of $50,000 at an interest rate of 8.50
%, amortised over 5 years with monthly payments,
calculate the balance at the end of 3 years.
A loan of RM5,000 for 20 months at 10% per annum simple interest rate was settled...
A
loan of RM5,000 for 20 months at 10% per annum simple interest rate
was settled by making 20 monthly payments. Find the outstanding
principal just after the eighth payment by using the Rule of
78.
The Bank quotes the interest rate on loans as 12% per annum continuously compounded. The interest...
The Bank quotes the interest rate on loans as 12% per annum
continuously compounded. The interest is actually paid monthly on a
$6911 loan. What is the interest payment (in $) of this loan per
month?
Warren has a loan with an effective interest rate of 5 percent per annum. He makes...
Warren has a loan with an effective interest rate of 5 percent
per annum. He makes payments at the end of each year for 10 years.
The first payment is 200, and each subsequent payment increases by
10 per year. Calculate the interest portion in the fifth
payment.
Warren has a loan with an effective interest rate of 5 percent
per annum. He makes payments at the end of each year for 10 years.
The first payment is 200, and...
You want to take out a personal loan to finance a trip to Europe. You estimate...
You want to take out a personal loan to finance a trip to
Europe. You estimate that you will need $7500 and the bank offers
you a 4-year term at 1.98%, compounded quarterly.What will your
payments be each month?
You would like to have $50,000 in 12 years. To accumulate this amount, you plan to...
You would like to have $50,000 in 12 years. To accumulate
this amount, you plan to deposit an equal sum in the bank each
year that will earn 10 percent interest compounded annually. Your
first payment will be made at the end of the year. a. How much
must you deposit annually to accumulate this amount? b. If you
decide to make a large lump-sum deposit today instead of the
annual deposits, how large should this lump-sum deposit be? ...
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