Economy A student borrowed $5,000, which she will repay in 30 equal monthly installments. After the...

Economy

A student borrowed $5,000, which she will repay in 30 equal monthly installments. After the 25th payment she desires to pay the remainder of the loan in a single payment, at 15% interest compounded monthly, what is the amount of the payment? please answer in detail and includde cash flow diagram

Expert Solution

Amount of payment = $1004.46

Calculation and cash flow diagram is shown below:

Formulas are: Instalment = PMT(rate/12,no.of months, principal)

Interest = Loan amount*rate of interest

Rahul Sunny answered 2 years ago

A student borrowed P5,000 which she will pay in 30 equal monthly installments. After her twenty-fifth...

A student borrowed P5,000 which she will pay in 30 equal monthly installments. After her twenty-fifth payment she desires to pay the remainder of the loan in a single payment. At 15% interest compounded monthly, what is the amount of the payment? Draw cash flow diagram

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly...

John borrowed $84,000 at 9.60% compounded monthly. He agreed to repay the loan in equal monthly payments over a 15 year amortization term. (a) What is the size of the monthly payment?t Enter answer to 2 decimal places b) Now assume that in part (a) you had rounded the payments DOWN to the nearest dollar, what would be the size of the final payment? Round down to nearest dollar means for example 121.8 is rounded to $121.00 (NOT 122) c)...

You agree to loan your sister $22,000. She will repay you in monthly installments of $450...

You agree to loan your sister $22,000. She will repay you in monthly installments of $450 for 5 years. What is the EAR on the loan? Round your answers to two decimal places

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal...

Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal monthly payments over 15 years. What is the size of the monthly payment rounded up to nearest cent? How much of the 24th payment is interest? How much of the 137th payment goes towards principal? How much principal was paid down in the third year? Now assume that in part (a) you had rounded the payments down to the nearest dollar, what would be...

$5,000 are borrowed now with the understanding that it will be repaid in equal monthly payments over 24 months

$5,000 are borrowed now with the understanding that it will be repaid in equal monthly payments over 24 months, if the interest rate is 1% per month, for payment number 6 find the amount that is due to principal? Your answer might be exact or to the closest.a. $833.33b. $194.83c. -540.54d. $40.54

Celeste just borrowed 47,700 dollars. She plans to repay this loan by making equal quarterly payments...

Celeste just borrowed 47,700 dollars. She plans to repay this loan by making equal quarterly payments of 2,271.5 dollars for 27 quarters. If she makes her first quarterly payment later today, then what is the quarterly interest rate on the loan? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

. Your company is planning to borrow $300,000 now and repay it in equal installments during...

. Your company is planning to borrow $300,000 now and repay it in equal installments during the next four years at 5 percent annual interest rate to fully amortize the loan. Calculate the equal yearly installments to fully repay the loan. Show your Work b. Prepare a complete schedule of amortization table for this loan. Show it in a table.

3. A person will repay his debt today in 3 years with equal installments of 1000...

3. A person will repay his debt today in 3 years with equal installments of 1000 TL every month. Calculate the amount of debt per year at 1.8% compound interest. (25 points)

Chad borrows $75,000 and agrees to repay the loan in five equal annual installments. The loan's...

Chad borrows $75,000 and agrees to repay the loan in five equal annual installments. The loan's interest rate is 6.75 percent. What is his loan's balance after making the third payment?

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...

Question