Question
In: Finance
You lend $400,000 to your friend for seven years. According to the agreement, your friend has...
You lend $400,000 to your friend for seven years. According to the agreement, your friend has to repay $89,000 annually for the first four years with a fixed interest rate of 15% compounded annually. Your friend tries to bargain for a 13% charged for the remaining periods. What should be the annual repayment for the last three years?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Suppose that you lend your friend $40,000 today and you friend agrees to pay you $14,295...
Suppose that you lend your friend $40,000 today and you friend
agrees to pay you $14,295 at the end of each the next 4 years .
What annual rate of return (r) will you earn if you make this
"investment"?
you lend a friend 25,000, which your friend will repay in 14 equal annual end of...
you
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1. Answer the following finance questions, a. If you lend $1,000 to a friend for 3...
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end? This is a balloon loan with all payment at the end of the
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You enter into a five-to-eight-month forward rate agreement with a firm. You agree to lend the...
You enter into a five-to-eight-month forward rate agreement with
a firm. You agree to lend the firm a 3-month loan of $5 million
starting 5 months from now, with a quarterly compounded forward
interest rate of 2.5% per annum. Currently, the continuously
compounded 5-month and 8-month interest rates are 3% per annum and
3.5% per annum, respectively.
1) What is the implied forward rate for the 3-month period
starting 5 months from now?
2) What is the present value of...
You enter into a five-to-eight-month forward rate agreement witha firm. You agree to lend the...
You enter into a five-to-eight-month forward rate agreement with
a firm. You agree to lend the firm a 3-month loan of $5 million
starting 5 months from now, with a quarterly compounded forward
interest rate of 2.5% per annum. Currently, the continuously
compounded 5-month and 8-month interest rates are 3% per annum and
3.5% per annum, respectively.1) What is the implied forward rate for the 3-month period
starting 5 months from now?2) What is the present value of this forward...
Calculate using Excel:Your friend claims that he invested $5,000 seven years ago andthat this...
Calculate using Excel:
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.
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You can take out a new loan for $355,625 at 2.00% APR compounded
monthly , with 300 more payments, starting next month to pay off
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You purchased a house five years ago and borrowed $400,000 . The loan you used has...
You purchased a house five years ago and borrowed $400,000 . The
loan you used has 300 more monthly payments of $1,686 each,
starting next month, to pay off the loan. You can take out a new
loan for $355,625 at 2.00% APR compounded monthly , with 300 more
payments, starting next month to pay off this new loan. If your
investments earn 2.75% APR compounded monthly , how much will you
save in present value terms by using the...
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