Question
In: Finance
Sandy has taken out a $100,000 loan with Saint Jorge Bank to buy a new BMW...
Sandy has taken out a $100,000 loan with Saint Jorge Bank to buy a new BMW 5 Series. The loan requires weekly repayments and the fixed interest rate on the loan is 4% p.a. compounded monthly. The duration of the loan is 5 years. (a) Assuming that for the first 2 years, the loan repayments will be calculated based on the fixed interest rate. What is the weekly repayment for the first 2 years of the loan? (b) For the remaining 3 years of the loan, the loan repayments will be calculated based on the new variable interest rate of 2.5% p.a. compounded weekly. What is the weekly repayment for the last 3 years of the loan?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Sandy has taken out a $100,000 loan with Saint Jorge Bank to buy a new BMW...
Sandy has taken out a $100,000 loan with Saint Jorge Bank to buy
a new BMW 5 Series. The loan requires weekly repayments and the
fixed interest rate on the loan is 4% p.a. compounded monthly. The
duration of the loan is 5 years.
(a) Assuming that for the first 2 years, the loan repayments
will be calculated based on the fixed interest rate. What is the
weekly repayment for the first 2 years of the loan?
(b) For the...
You have taken out a loan of $32,000 to buy a new Saturn. The loan will...
You have taken out a loan of $32,000 to buy a new Saturn. The
loan will be paid off in monthly instalments starting in one month
over the next 4 years (48 payments). The interest rate on the loan
is 8.25% per year. The bank doesn’t tell you, but it is compounded
quarterly. (a) Find the amount of the monthly loan payments. (b)
The amount owed immediately after the 30th payment is
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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 abusiness. He has agreed...
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...
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...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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...
Gerald has taken out a loan of $100,000 today to start a business. He has agreed...
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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