Question
In: Finance
The insurance company you work for takes out a loan for $2,500,000. They will pay the...
The insurance company you work for takes out a loan for $2,500,000. They will pay the lender at an annual effective rate of 10% interest at the end of each year and then prepay the $2,500,000 at the end of 7 years. The lender requires the insurance company to establish a sinking fund.
How much should the insurance company deposit into the sinking fund each year if they can earn 7% annual effective rate of interest?
Round your answer to the nearest whole dollar.
The correct answer is 288,883. Please reply with a specific solution.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
The government of Bolivia takes out a loan of fixed size (L) and agrees to pay...
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Bolivia chooses to default, it will lose a fraction c of its income
(Y ) due to trade sanctions and other financial distress. The rest
will be consumed. Otherwise, the country can pay principal and
interest on the...
The government of Bolivia takes out a loan of fixed size (L) and agrees to pay...
The government of Bolivia takes out a loan of fixed size (L) and
agrees to pay r interest on it. The loan is extended by a group of
large banks in New York. The loan is due in one year’s time. If
Bolivia chooses to default, it will lose a fraction c of its income
(Y ) due to trade sanctions and other financial distress. The rest
will be consumed. Otherwise, the country can pay principal and
interest on the...
You take out a loan for 10000. You pay off the loan with monthly payments of...
You take out a loan for 10000. You pay off the loan with monthly
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years.
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(b) What is the outstanding loan balance immediately after the
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using both the retrospective and prospective formulas.
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actuarial science
You are looking to take out a $47，000 loan to pay for school. The loan would...
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three ways:
what‘s your ending balance of the first year?
a) As a discount loan
b) As an interest-only loan
c) As an amortized loan.
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Show your work. Suppose that John takes a loan of 7000 today and pay 1000 in 3...
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years?
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a) You took out a one-year loan for $3000 and agreed to pay it in three...
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How would you calculate how much an insurance company will pay?: $1,000 deductible, $5,000 out of...
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Susana takes out a $1,000 loan. The loan carries a 10% annual interest rate and it...
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Show Formula
Find Annual Payment
Create Amortization Table
Show fraction of the fixed payment represents the repayment of
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