Question
In: Finance
A borrower took out a loan of 100,000 and promised to repay it with a payment...
A borrower took out a loan of 100,000 and promised to repay it with a payment at the end of each year for 30 years.
The amount of each of the first ten payments equals the amount of interest due. The amount of each of the next ten payments equals 150% of the amount of interest due. The amount of each of the last ten payments is X.
The lender charges interest at an annual effective rate of 10%.
Calculate X.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A borrower took out a loan of 100,000 and promised to repay it with a payment...
A borrower took out a loan of 100,000 and promised to repay it
with a payment at the end of each year for 30 years.
The amount of each of the first ten payments equals the amount
of interest due. The amount of each of the next ten payments equals
150% of the amount of interest due. The amount of each of the last
ten payments is X.
The lender charges interest at an annual effective rate of
10%.
Calculate...
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Tak took out a loan for $5,000 at 4% interest. To repay the loan
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years. How much of his second payment is interest?
The question we are interested in is this: After he has made
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a borrower takes out a 15 year mortgage loan for 100,000 with an
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Bianca took out a loan from the bank today for X. She plans to repay this...
Bianca took out a loan from the bank today for X. She plans to
repay this loan by making payments of 44,283 dollars per month for
a certain amount of time. If the interest rate on the loan is 1.35
percent per month, she makes her first payment of 44,283 dollars
later today, and she makes her final monthly payment of 44,283
dollars in 4 months, then what is X, the amount of the loan?
Jabari owns a pet care...
A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6%...
A borrower takes out a 30-year mortgage loan for $100,000 with
an interest rate of 6% plus 4 points. Payments are to be made
monthly.
a. What is the effective cost of borrowing on the loan if the
loan is carried for all 30 years?
b. What is the effective cost of borrowing on the loan if the
loan is repaid after 10 years?
Franz just took out a loan from the bank for 227,674 dollars. He plans to repay...
Franz just took out a loan from the bank for 227,674 dollars. He
plans to repay this loan by making a special payment to the bank of
36,888 dollars in 5 months and by also making equal, regular
monthly payments of X. If the interest rate on the loan is 1.06
percent per month, he makes his first regular monthly payment later
today, and he makes his last regular monthly payment made in 9
months from today, then what is...
Omar just took out a loan from the bank for 151,051 dollars. He plans to repay...
Omar just took out a loan from the bank for 151,051 dollars. He
plans to repay this loan by making a special payment to the bank of
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monthly payments of X. If the interest rate on the loan is 1.15
percent per month, he makes his first regular monthly payment later
today, and he makes his last regular monthly payment made in 9
months from today, then what is...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed to repay the loan on the following terms:
Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.• The repayments for the first 5 years will cover interest
only to help reduce the financial burden for Gerald’s business at
the start.• After the 5-year interest-only period, Gerald will make
level monthly payments that will fully...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed to repay the loan on the following terms:
Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.• The repayments for the first 5 years will cover interest
only to help reduce the financial burden for Gerald’s business at
the start.• After the 5-year interest-only period, Gerald will make
level monthly payments that will fully...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed to repay the loan on the following terms:
Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following terms: •
Repayments will be made on a monthly basis. The first repayment
will be made exactly one month from today. • The repayments for the
first 5 years will cover interest only to help reduce the financial
burden for Gerald’s business at the start. • After the 5-year
interest-only period, Gerald will make level monthly payments...
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