Nathubhai agrees to receive $1,900,000 annually as repayment for his loan to Parthivbhai for 25 years...

Nathubhai agrees to receive $1,900,000 annually as repayment for his loan to Parthivbhai for 25 years and also agrees to an annual interest rate of 3.57 percent, How much has he lent to Parthivbhai if the first payment is made today?

Expert Solution

PV = 1,900,000 * 16.35701 * 1.0357

PV = $32,187,808.83

jeff jeffy answered 2 years ago

John plans to borrow $400,000 15-years mortgage loan from his bank, which agrees that John...

John plans to borrow $400,000 15-years mortgage loan from his bank, which agrees that John should repay the loan in 180 equal end-of-month payments. The annual interest rate is 4%, compounded monthly. (1) What is the amount of each monthly payment? Show your calculation. (2) How much total interest dollar amount will John pay over the 180 months life of the loan? Show your calculation (3) Complete the following loan amortization schedule for the first 6...

$100,000 loan is made monthly interest-only repayments for 12 years, with the first repayment occurring one...

$100,000 loan is made monthly interest-only repayments for 12 years, with the first repayment occurring one month from today. Then the level annual repayments of $9,456 are made for as long as needed to pay off the remaining balance of the loan, where the first annual repayment is made at the end of year 13. The Annual repayment is made at the end of year 13. The annual effective interest rate is 9.2%. Calculate the total number of repayments to...

John plans to borrow $400,000 from his bank, which agrees that John should repay the loan...

John plans to borrow $400,000 from his bank, which agrees that John should repay the loan in 180 equal end -of-months payments. The annuel interest rate is 4.5%, compounded monthly. (1) what is the amount of each monthly payment? show your calculation (2) How much is the total interest in dollars amount will John pay over a 15 year life of the loan? Show your calculation (3) complete the following loan amortization schedule for the first 6 months and the...

On a loan of 50,000 for 30 years at 6.8% annually the lender wants the interest...

On a loan of 50,000 for 30 years at 6.8% annually the lender wants the interest paid annually and the principal repaid at the end of the 20 years. The borrower makes annual level payments into a sinking fund to raise the 50,000. The fund earns 5.8% annually. What are the borrowers total annual payments?

Jack and Diane are both 25 years old. They agree to the following contracts: Jack agrees...

Jack and Diane are both 25 years old. They agree to the following contracts: Jack agrees to buy Diane’s phone for $300. Jack agrees to buy Diane’s car for $6,000. Jack rents an apartment from Diane for 2 years. Jack buys a vacation house on .20 acres from Diane. Jack agrees that, if Diane has lunch with him every Saturday until Jack retires, Jack will pay Diane $2000. Jack helps Diane get a car loan. He promises Diane’s lender that...

The monthly repayment of a loan for an apartment for student rental is RM 900. An...

The monthly repayment of a loan for an apartment for student rental is RM 900. An additional cost of RM420 on tax and maintenance is also incurred on monthly basis. Given that the rental rate for a similar apartment is RM 500 per month, perform the following. a) A simple economic analysis (without considering the interest rates) on the property investment. [5 marks] b) Then, identify the issues and alternatives available (at least three) based on the outcome of the...

To model repayment of a loan, you need to calculate the interest on the balance and...

To model repayment of a loan, you need to calculate the interest on the balance and deduct any payments made. So if the balance at the start of the period is L the balance at the end of the period before the payment is L(1+r) where r is the interest rate per period (e.g. if the payments are monthly, it is a monthly interest rate) and the balance after the payment is L(1+r)−P where P is the payment per period...

Sally lends 10,000 to Tim. Tim agrees to pay back the loan over 5 years with...

Sally lends 10,000 to Tim. Tim agrees to pay back the loan over 5 years with monthly payments payable at the end of each month. Sally can reinvest the monthly payments from Tim in a savings account paying interest at 6%, compounded monthly. The yield rate earned on Sallys investment over the five-year period turned out to be 7.45%, compounded semi- annually. What nominal rate of interest, compounded monthly, did Sally charge Tim on the loan?

A loan of $100,000 is to be repaid by two equal repayments of X. One repayment...

A loan of $100,000 is to be repaid by two equal repayments of X. One repayment is due at the end of 2 years, the second repayment is due at the end of 6 years. The interest rate is at 4% p.a. compounded quarterly for the first 3 years and then 4.4% p.a. compounded quarterly thereafter. What is the size of each repayment? Select one: a. $58,762.97 b. $58,222.14 c. $57,989.46 d. $56,779.19

Suppose you will receive $1,000 in 6 years. If your opportunity cost is 7% annually, what...

Suppose you will receive $1,000 in 6 years. If your opportunity cost is 7% annually, what is the present value of this amount if interest is compounded every six months? What is the effective annual rate?

Question