What is the capital charge factor for a loan with an interest rate of 7% for...

What is the capital charge factor for a loan with an interest rate of 7% for 25 years? Make sure to answer to at least three significant figures .

Expert Solution

Given in the question,

r = 7% = 7/100 = 0.07

n = 25

Capital charge factor = [1-(1+r)^-n]/r

= [1-(1+0.07)^-25]/0.07 (Substituting the value from above)

= [1-(1.07)^-25]/0.07

= [1-(1/1.07)²⁵]/0.07

= [1-(1/5.4274)]/0.07

= [1-0.1842]/0.07

= 0.8158/0.07

=11.654

Please give likes for the work. Thanks & Regards.

ekkarill92 answered 2 years ago

If the interest rate on the loan is 7%, what is the amount of principal in the second payment?

You borrow $12,000 today. The loan will be repaid in annual payments over 10 years. If the interest rate on the loan is 7%, what is the amount of principal in the second payment?

Most banks will charge a ___ interest rate on a $160,000 purchase loan with $200,000 purchase...

Most banks will charge a ___ interest rate on a $160,000 purchase loan with $200,000 purchase price and appraised value than on a $160,000 refinance loan remaining principle on old loan $120,000, with $200,000 appraised value A. Lower B. Higher

Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan...

Calculate the table factor, the finance charge, and the monthly payment (in $) for the loan by using the APR table, Table 13-1. (Round your answers to the nearest cent.) Amount Financed Number of Payments APR Table Factor Finance Charge Monthly Payment $9,400 36 13% $ $ $

(7-A) The Mendez family is considering a mortgage loan of $348,500 at an annual interest rate...

(7-A) The Mendez family is considering a mortgage loan of $348,500 at an annual interest rate of 6.9%. How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan? (8-B) Marcel Thiessen purchased a home for $209,300 and obtained a 15-year, fixed-rate mortgage at 9% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied...

You are looking at a one-year loan of $20,000. The interest rate is quoted as 7...

You are looking at a one-year loan of $20,000. The interest rate is quoted as 7 percent plus four points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are very common with home mortgages. The interest rate quotation in this example requires the borrower to pay four points to the lender up front and repay the loan later with 7 percent interest. What rate would you...

Please solve it on excel Q.1 I charge a 6% nominal interest rate on a loan...

Please solve it on excel Q.1 I charge a 6% nominal interest rate on a loan when inflation is 3%. By how much does the nominal rate need to rise for me to see a real interest rate of 5%? Q.2 Carlson is buying a motel. The purchase price is $1,000,000. The bank is willing to finance 70% of the purchase price for 30 years in monthly installments at 7.5% per annum. He wishes to sell the property after exactly...

Scenario. Bank X provides home loan service to their retail customers and charge a interest rate...

Scenario. Bank X provides home loan service to their retail customers and charge a interest rate for their service. Due to market fluctuations, Bank X only offers floating interest rate (FIR) for their home loan customers. A friend of you who works as a banker at Bank X told you that the average yearly FIR in the last thirty years follows a Normal distribution with mean 3.2% (i.e., μ = 0.032) and standard deviation 0.04 (i.e., σ = 0.04). In...

You have three year loan of 60000. the interest rate is 7% per year, and the...

You have three year loan of 60000. the interest rate is 7% per year, and the loan calls for equal annual payments. What is the amount of principal paid at the end of year 2?

Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per...

Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per year, and the loan calls for equal annual end-of-year payments.

You get a car loan for $16,000 at an annual interest rate of 7%, which requires...

You get a car loan for $16,000 at an annual interest rate of 7%, which requires 5 annual payments. Draw a loan amortization chart, which details the payment, interest and principle each year of the loan. Replicate the chart in Excel using monthly payments.

Question