Question

In: Finance

You borrow money on a self liquidating installemnt loan (equal payments at the end of each...

You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan $708,000 Interest Rate 16.10% Life (years) 51 Date of Loan January 1, 2020 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. a) What is the annual payment? b) What are the total interest payments? c) After 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? d) After 21 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? Redo the problem if the interest rate is 1.00% (for a well designed spreadsheet this should take 30 seconds) e) What is the annual payment? f) What are the total interest payments? g) After 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? h) After 21 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

Solutions

Expert Solution

1.
114044.32

2.
5108260.11

3.
46.73%

4.
1.09%

5.
62.58%  

6.
35.15%

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

You borrow money on a self liquidating installemnt loan (equal payments at the end of each...
You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan $318,000 Interest Rate 13.20% Life (years) 58 Date of Loan January 1, 2020 Annual Payment: 6206.484138 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. a) What is the annual payment? b) What are the total interest payments? c) After 25 payments...
You borrow $80,000 at 5.00% per year and will pay off the loan in equal payments...
You borrow $80,000 at 5.00% per year and will pay off the loan in equal payments starting one year after the loan is made over a period of ten years. What are the annual end-of-year payments? Determine the amount of interest and principal that are paid each year. What is the total interest paid for the loan? If you are using the excel please show me the code or equation to do it myself
Suppose you plan to borrow $300,000 from a financial institution and you are required to repay the loan by making equal annual payments for five years (payment at the end of each year).
  Suppose you plan to borrow $300,000 from a financial institution and you are required to repay the loan by making equal annual payments for five years (payment at the end of each year). The interest rate for the loan is 3.5% per year. Show your answers correct to two decimal points. Calculate the annual payment required. Prepare an amortization schedule for the loan for each year according to the following format. Year Beginning balance Annual payment Interest paid Principal...
You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs...
You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% annual compound interest. a)Solve for the payment size. b)What is the payment size when interest is 8% compounded monthly, and monthly payments are made over 6 years? c)What is the payment size when interest is 8% compounded semiannually, and annual payments are made over 6 years? d)What is the payment size when the...
You decided to borrow $20,000and make payments at the end of each month for 10years. The...
You decided to borrow $20,000and make payments at the end of each month for 10years. The maximum monthly payment you can afford is $1000. What is the maximum interest rate you can afford(keep two decimal places)? What is the maximum interest rate you can afford if you are making payments at the beginning of each month for 10 years (keep two decimal places)?
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 $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment.
A loan of 10000$ 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...
You borrow $7,000 today and promise to repay the loan over the next three years with 36 equal, end-of-month payments starting one month from today.
You borrow $7,000 today and promise to repay the loan over the next three years with 36 equal, end-of-month payments starting one month from today. The interest rate is 4% APR compounded monthly. What is the amount of each payment? Round only your final answer to two decimal places.• $206.67• $194.44• $214.98• $202.19• $223.86
A 20 year loan with payments at the end of each year involves payments of $1,...
A 20 year loan with payments at the end of each year involves payments of $1, 000 for the first 10 years, and then for the next 10 years payments are 3% larger than the previous year’s payment. If effective annual interest is 5% then find the original loan amount. please dont solve using excel
Consider a $35,000 loan to be repaid in equal installments at the end of each of...
Consider a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 6%. Set up an amortization schedule for the loan. Round your answers to the nearest cent. Enter "0" if required Year Payment Repayment Interest Repayment of Principal Balance 1 $   $   $   $   2 $   $   $   $   3 $   $   $   $   4 $   $   $   $   5 $   $   $   $   Total $   $  ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT