A loan of $20,000 is repaid through annual, end of year payments of $2,500 each. The...

A loan of $20,000 is repaid through annual, end of year payments of $2,500 each. The end of year final payment is reduced and the annual effective rate is 8%. Find the outstanding loan balance after $15,000 has been repaid.

Expert Solution

Loan balance after $15000 payments = $13397.66

Please upvote if satisfied

jeff jeffy answered 2 years ago

A loan of $5000 is repaid with annual payments at the end of each year of...

A loan of $5000 is repaid with annual payments at the end of each year of $1200,$800,$1300 and X. Assume the loan has 10% effective interest per year. a) Determine X b) Determine the amount of interest paid with the third payment.

A loan of 10000$ is to be repaid with annual payments, at the end of each...

A loan of 10000$ is to be repaid with annual payments, at the end of each year, for the next 20 years. For the rst 5 years the payments are k per year ; the second 5 years, 2k per year ; the third 5 years, 3k per year ; and the fourth 5 years, 4k per year. (a) Draw two timelines describing this series of payments. (b) For each of the timelines in (a), find an expression for k...

A 10-year loan of 120,000 is to be repaid with payments at the end of each...

A 10-year loan of 120,000 is to be repaid with payments at the end of each month. Interest is at an annual effective rate of 6.00%. The first monthly payment is 800. Each additional payment will be k more than the previous month payment. Find k.

a 30 year loan of 1000 is repaid with payments at the end of each year....

a 30 year loan of 1000 is repaid with payments at the end of each year. Each of the first 10 payments equals the amount of interest due. Each of the next 10 payments equals 150% of the amount of interest due. Each of the last 10 payments is X. The lender charges interest at an effective annual rate of 10%. Calculate X. please explain, having much trouble with this problem, Thanks!

A 30-year loan of 1,000 is repaid with payments at the end of each year. Each...

A 30-year loan of 1,000 is repaid with payments at the end of each year. Each of the first ten payments equals the amount of interest due. Each of the next ten payments equals 150% of the amount of interst due. Each of the last ten payments is X. The lender charges interest at an annual effective rate of 10%. Calculate X.

A 30-year loan of 1100 is repaid with payments at the end of each year. Each...

A 30-year loan of 1100 is repaid with payments at the end of each year. Each of the first fifteen payments equals 155% of the amount of interest due. Each of the last fifteen payments is X. The lender charges interest at an annual effective rate of 8%. Calculate X a. 57 b. 65 c. 77 d. 82 e. 46

An investor plans to borrow $20,000. The loan will be repaid in 5 annual payments. The...

An investor plans to borrow $20,000. The loan will be repaid in 5 annual payments. The interest rate charged is 7%. Find the loan payment and amortize the loan Use formulas and show step by step with calculations.

A $1000 loan is being repaid with level payments at the end of each year for...

A $1000 loan is being repaid with level payments at the end of each year for 4 years using a sinking fund method. The loan has 10% eﬀective interest per year and the sinking fund has 8% interest per year. Create a sinking fund table for this payment plan. Include a column for the period, interest paid that period, sinking fund deposit that period, interest earned in the sinking fund that period and the balance in the sinking fund at...

A loan of $10,000 is being repaid with 10 payments at the end of each year,...

A loan of $10,000 is being repaid with 10 payments at the end of each year, where each payment includes equal amount of repayment of the principal and the interest at a rate of 5% based on the outstanding balance after the previous payment. Immediately after the loan was made, the right of the loan was sold at a price that yields an annual effective rate of 10%. Find the price paid for the right of the loan. (Answer: $8072.28)...

A loan is to be repaid in end of quarter payments of $1,000 each, with there...

A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment.

Question