There is a 5-year, $80,000 loan is secured at a nominal rate of 4% per year,...

There is a 5-year, $80,000 loan is secured at a nominal rate of 4% per year, compounded quarterly. If immediately after making your second quarterly payment you decide to pay off the loan, what would be the balance amount? Draw a cash flow diagram for the answer and list all of calculation steps with an explanation sentence.

Expert Solution

jeff jeffy answered 2 years ago

a payment on a loan is made quarterly at a nominal rate of 9% per year...

a payment on a loan is made quarterly at a nominal rate of 9% per year compunded monethly. What is the effective semi-annual interest rate for this loan.

2. An investment of $425 is made at a nominal rate of 4% per year, with...

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The current nominal market interest rate for a four-year car loan is 8 percent per year....

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A loan will be repaid in 5 years with monthly payments at a nominal interest rate...

A loan will be repaid in 5 years with monthly payments at a nominal interest rate of 9% monthly convertible. The first payment is $1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 2% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

Your company has just taken out a 5-year installment loan for $600,000 at a nominal rate...

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You are given a loan with a nominal interest rate of 5%. You must pay back...

You are given a loan with a nominal interest rate of 5%. You must pay back this loan one year from now. Over the next year inflation is at 4%. In real terms what is the effective interest rate you must pay the loan back at after adjusting for inflation?

John smith contracted a 30-year FRM (with monthly amortization) loan of $80,000 at an interest rate...

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Which of the following statements indicates a nominal rate of 5% annually? Review Later 5% per...

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