Question One [10 marks] Prepare a spreadsheet to show a repayment schedule for a loan of...

Question One [10 marks] Prepare a spreadsheet to show a repayment schedule for a loan of $100,000, [6 marks] repayable quarterly over 10 years calculated at an effective interest rate of 9.68% (a) Calculate the amount of the quarterly repayment. [1 mark] (b) Calculate the loan outstanding right after the 10th payment. [1 mark] (c) Calculate the interest component of the 11th payment. [1 mark] (d ) Calculate the principal(capital) repaid in the 11th payment. [1 mark] interest rate 20.00% per annum, effective

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a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and...

a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and the loan calls for equal payments. How much interest is paid in the fifth year? How much interest is paid over the life of the loan? b)What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?

Prepare a schedule showing the amortization of a $12,000 loan to be repaid in 10 end-of-year...

Prepare a schedule showing the amortization of a $12,000 loan to be repaid in 10 end-of-year installments that include interest at a rate of 6%. Jared and Courtney Jill own a parcel of fertile farm land which a local farmer has offered to rent for a period of 10 years. He is willing to make a payment of $20,000 today or pay an ordinary annuity of $3,400 at the end of each of the next 10 years. Which payment method...

Your friend is asking a $55,000 loan from you with the following repayment schedule: End of...

Your friend is asking a $55,000 loan from you with the following repayment schedule: End of year 1 $ 0 End of year 2 $ 11,000 End of year 3 $ 22,000 End of year 4 $ 33,000 You demand at least 8% return on this loan deal. Answer to the following questions by showing your work using financial calculator keys. (a) Should you enter into this loan based on your PV (or NPV) analysis? (b) What is the expected...

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent...

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ 111000 $ $ $ $ 2...

Prepare an amortization schedule for a three-year loan of $24,000.

Prepare an amortization schedule for a three-year loan of $24,000. The interest rate is 16 percent per year, and the loan calls for equal principal payments.

Prepare the first row of a loan amortization schedule based on the following information; the loan...

Prepare the first row of a loan amortization schedule based on the following information; the loan amount is for $17,246 with an annual interest rate of 6%. the loan will be repaid over 38 years with monthly payments. What is the loan payment? What portion of this payment is Interest? What portion of this payment is principal? What is the loan balance after the first monthly payment?

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

Pick one of the four loan repayment options and briefly discuss the benefits and detriments of...

Pick one of the four loan repayment options and briefly discuss the benefits and detriments of that option. Please vary your answers so that all four options are discussed. 1. Bullet loan 2. Balloon loan 3. Equal principle payment 4. Equal payment

Create an amortization schedule in Excel for the following loan: (Hint: Show Calculations) The loan term...

Create an amortization schedule in Excel for the following loan: (Hint: Show Calculations) The loan term is 15 years, the payments are made monthly, the loan amount is $300,000 and the interest rate is 4.00% APR. Also include the "totals" over the loan term for the "interest" payment, the "principal" payment, as well as "total" payments.

a. Prepare the amortization schedule for a thirty-year loan of $100,000. The APR is 3% and...

a. Prepare the amortization schedule for a thirty-year loan of $100,000. The APR is 3% and the loan calls for equal monthly payments. The following table shows how you should prepare the amortization schedule for the loan. Month Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $100,000.00 b. Use the annuity formula to find how much principal you still owe to the bank at the end of the third year. Check that this value is the same...

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