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 2 years 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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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
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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
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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
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4. A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of...
4. A borrower takes out a 30-year mortgage loan for $100,000
with an interest rate of 6% plus 2 points. What is the effective
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(A) 6.0%
(B) 6.2%
(C) 6.4%
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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
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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:
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terms:• Repayments will be made on a monthly basis. The first
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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...
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