A loan L is repaid with annual payments of $500, $400,$300, and $200 at the end...

A loan L is repaid with annual payments of $500, $400,$300, and $200 at the end of each year using a sinking fund method. If the loan has 10%effective interest rate per year and the sinking fund has 8% effective interest our year, find L

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jeff jeffy answered 2 years ago

Donald takes out a loan to be repaid with annual payments of $500 at the end...

Donald takes out a loan to be repaid with annual payments of $500 at the end of each year for 2n years. The annual effective interest rate is 4.94%. The sum of the interest paid in year 1 plus the interest paid in year n + 1 is equal to $720. Calculate the amount of interest paid in year 10.

A loan of 10000$ is to be repaid with annual payments, at the end of each...

A loan of 10000$ is to be repaid with annual payments, at the end of each year, for the next 20 years. For the rst 5 years the payments are k per year ; the second 5 years, 2k per year ; the third 5 years, 3k per year ; and the fourth 5 years, 4k per year. (a) Draw two timelines describing this series of payments. (b) For each of the timelines in (a), find an expression for k...

A loan of $5000 is repaid with annual payments at the end of each year of...

A loan of $5000 is repaid with annual payments at the end of each year of $1200,$800,$1300 and X. Assume the loan has 10% effective interest per year. a) Determine X b) Determine the amount of interest paid with the third payment.

A loan of $20,000 is repaid through annual, end of year payments of $2,500 each. The...

A loan of $20,000 is repaid through annual, end of year payments of $2,500 each. The end of year final payment is reduced and the annual effective rate is 8%. Find the outstanding loan balance after $15,000 has been repaid.

A loan is to be repaid in end of quarter payments of $1,000 each, with there...

A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment.

A loan is repaid with payments which start at $400 the first year and increase by...

A loan is repaid with payments which start at $400 the first year and increase by $60 per year until a payment of $1240 is made, at which time payments cease. If interest is 5% effective, find the amount of principal in the 6th payment.

A loan of $9,000 is to be repaid in 3 equal payments 60, 180, and 300...

A loan of $9,000 is to be repaid in 3 equal payments 60, 180, and 300 days respectively after the date of the loan. If the interest rate charged on the loan is 7¼%, what will be the size of each equal payment? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

A loan is being repaid with 20 payments of $ 1,000 at the end of each...

A loan is being repaid with 20 payments of $ 1,000 at the end of each quarter. Given that the nominal rate of interest is 8% per year compounded quarterly, find the outstanding balance of the loan immediately after 10 payments have been made (a) by the prospective method, (b) by the retrospective method.

A 10-year loan of 120,000 is to be repaid with payments at the end of each...

A 10-year loan of 120,000 is to be repaid with payments at the end of each month. Interest is at an annual effective rate of 6.00%. The first monthly payment is 800. Each additional payment will be k more than the previous month payment. Find k.

A loan is to be repaid by twenty end of quarter payments of $1,000. The interest...

A loan is to be repaid by twenty end of quarter payments of $1,000. The interest rate for the first two years is 6% convertible quarterly, and last three years is 8% convertible quarterly. Find the outstanding loan balance just after the 5th payment. Please don't use Excel! I'm looking to learn how to do it with the formulas.

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