Question
In: Finance
If you borrow a principal amount of $11,778 and are required to repay the loan in...
If
you borrow a principal amount of $11,778 and are required to repay
the loan in ten equal installments of $2,000, what is the interest
rate associated with the loan?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Albert and Allison borrow exactly the same amount from Liberty Financial. Albert will repay his loan...
Albert and Allison borrow exactly the same amount from Liberty
Financial. Albert will repay his loan with 20 end of year annual
payments. Albert's first payment will be 950, and each of his
successive payments will be 950 greater than the one before.
Allison will make level payments of 50000 at times T; 2T; 3T; 4T.
Both Albert and Allison's loans are subject to the same annual
effective rate of 5%. Determine the time of Allison's first
payment.
(a) 2.7-2.9...
You want to borrow $25,000. For the loan to be paid off, youmust repay $1000...
You want to borrow $25,000. For the loan to be paid off, you
must repay $1000 every quarter (4 times per year) for the next 7
years plus $7000 at the end of the 7 years. Based on this, what
rate of interest are you paying?
What must be the end-of-the-month mortgage payment amount required to repay a loan of $52000 in...
What must be the end-of-the-month mortgage payment amount
required to repay a loan of $52000 in 25 years? Assume k =
0.12 with monthly compounding.
Round your final answer to 2 decimal places.
You are planning to borrow OMR 3,500. You can repay the loan in 40 monthly payments...
You are planning to borrow OMR 3,500. You can repay the loan in
40 monthly payments of OMR 103.25 each or 36 monthly payments of
OMR 112.94 each. You decide to take the 40-month loan. During each
of the first 36 months you make the loan payment and place the
difference between the two payments (OMR 9.69) into an investment
account earning 10% APR. Beginning with the 37th payment you will
withdraw money from the investment account to make your...
If you borrow $40,000 today and agree to repay the loan in 24 annual payments, how...
If you borrow $40,000 today and agree to repay the loan in 24
annual payments, how much do you owe every year? Assume this is an
amortized loan with 10% interest rate, compounded annually?
Suppose you borrow $8,000 and agree to repay the loan in 4 equal installments over a...
Suppose you borrow $8,000 and agree to repay the loan in 4 equal
installments over a 4-year period. The interest rate on the loan is
13% per year. What is the amount of the reduction in principal in
year 2?
A. $1,040 B. $1,864 C. $2,690 D. $826 E. $2000
Suppose you win $100 million in lottery. The money is paid in
equal annual installments of $4 million over 25 years. If the
appropriate discount rate is 10%, how much...
You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs...
You borrow $42,000 and repay the loan with 6 equal annual
payments. The first payment occurs one year after receipt of the
$42,000 and you pay 8% annual compound interest. a)Solve for the
payment size.
b)What is the payment size when interest is 8% compounded
monthly, and monthly payments are made over 6 years?
c)What is the payment size when interest is 8% compounded
semiannually, and annual payments are made over 6 years?
d)What is the payment size when the...
A 20-year loan of 150,000 is negotiated with the borrower agreeing to repay principal and interest...
A 20-year loan of 150,000 is negotiated with the borrower
agreeing to repay principal and interest at 5%. A level payment of
9,000 will apply during the first ten years and a higher level
payment will apply during the remaining ten years. Each time the
lender receives a payment from the borrower, he will deposit the
portion representing the principal into a sinking fund with an
annual effective interest rate of 4%. (Assume that the interest
portion remains level throughout...
A 20-year loan of 150,000 is negotiated with the borrower agreeing to repay principal and interest...
A 20-year loan of
150,000 is negotiated with the borrower agreeing to repay principal
and interest at 5%. A level payment of 9,000 will apply during the
first ten years and a higher level payment will apply during the
remaining ten years. Each time the lender receives a payment from
the borrower, he will deposit the portion representing the
principal into a sinking fund with an annual effective interest
rate of 4%. (Assume that the interest portion remains level
throughout...
A 20-year loan of 150,000 is negotiated with the borrower agreeing to repay principal and interest...
A 20-year loan of 150,000 is negotiated with the borrower
agreeing to repay principal and interest at 5%. A level payment of
9,000 will apply during the first ten years and a higher level
payment will apply during the remaining ten years. Each time the
lender receives a payment from the borrower, he will deposit the
portion representing the principal into a sinking fund with an
annual effective interest rate of 4%. (Assume that the interest
portion remains level throughout...
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