You have just arranged a six-year bank loan for $150,000 at an interest rate of 9%...

You have just arranged a six-year bank loan for $150,000 at an interest rate of 9% p.a. with interest compounded quarterly. The loan will be repaid in equal quarterly installments and the first payment will be due one quarter from today. Assuming end-of-the-period cash flows, the principal amount repaid to the bank at the end of the first quarter will be closest to:

Group of answer choices

$3,375.

$4,890.

$4,782.

$3,267.

Expert Solution

Given information

1) ban loan = $ 150,000

2) Rate of interest = 9% p.a

means 9/4 = .0225 per quarter

3) loan term = 6 years

Answer is option "C' means $4,782

jeff jeffy answered 1 year ago

You have a home loan of $150,000. The interest rate is 5.5% and the loan is...

You have a home loan of $150,000. The interest rate is 5.5% and the loan is for 30 years, with monthly payments. If you make a ONE TIME extra principle payment of $22,000 in period number 18, how much do you SAVE in total interest paid of the life of the loan? A. $22,000 B. $48,814 C. $35,712 D. $61,492

1.Assume you have just arranged a loan from your bank in the amount of $10,000. The...

1.Assume you have just arranged a loan from your bank in the amount of $10,000. The bank will allow you to repay the loan with a lump sum payment of $11,500 in two years. No other payments will be made during this period. What is the implied EAR of this lending arrangement? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be...

Five years ago, you had arranged for an eight-year bank loan for $300,000 at an interest...

Five years ago, you had arranged for an eight-year bank loan for $300,000 at an interest rate of 10% p.a. with interest compounded semi-annually. The loan was being repaid in equal semi-annual instalments and the payments were being made at the end of each period. The total amount still owed the bank today is closest to？ Could you please show the solution step by step instead of using Excel functions…Thanks a lot!

Ms. Jordan has just taken out a $150,000 mortgage loan at an interest rate of 6...

Ms. Jordan has just taken out a $150,000 mortgage loan at an interest rate of 6 percent. If the mortgage calls for equal monthly payments for 20 years, what is the amount of each payment? Also, work out an amortization table

A bank just approved your small business loan for $20,000. The loan has an interest rate...

A bank just approved your small business loan for $20,000. The loan has an interest rate of 8.0% and will be repaid with 10 end-of-year payments. What is the required annual loan payment? Halfway through the loan's life, what is the loan’s remaining balance? What percentage of the total payments made during the first five years will be made toward interest?

A business will take out a 10-year loan of $150,000. The interest rate is 10% per...

A business will take out a 10-year loan of $150,000. The interest rate is 10% per year and the loan calls for a $15,000 reduction in principal each year. What is the total payment in year 3? Please show work by using appropriate formulas. Thank you.

You have a $200,000.00 budget borrowed (Loan) from a bank, with an interest rate of 4.5%...

You have a $200,000.00 budget borrowed (Loan) from a bank, with an interest rate of 4.5% per annum. (Loan Date = January 1, 2018) Cars purchased must be ONLY New 2018 models, Ford, Chevrolet AND Dodge cars mixed from the Big 3 US Auto manufacturers. You can reinvest buying new cars from the profits you earn from the original rental car fleet fees; assume 80% of the vehicles will be rented at all times. Assume 1.5% product price increase each...

You have three year loan of 60000. the interest rate is 7% per year, and the...

You have three year loan of 60000. the interest rate is 7% per year, and the loan calls for equal annual payments. What is the amount of principal paid at the end of year 2?

As a manager of a commercial bank, you just purchased a three-year interest rate collar with...

As a manager of a commercial bank, you just purchased a three-year interest rate collar with LIBOR as the interest rate index. The interest rate cap specifies a fee of 2 percent of notional principal (valued at $100 million) and an interest rate ceiling of 9 percent. The interest rate floor specifies a fee of 3 percent of the $100 million notional principal and an interest rate floor of 7 percent. Assume that LIBOR is expected to be 6 percent,...

FIN220 Bank offers you a 5-year loan for 500,000 Baht at an annual interest rate of...

FIN220 Bank offers you a 5-year loan for 500,000 Baht at an annual interest rate of 5 percent, compounded monthly. What will your monthly loan payment be? 115,487.40 100,000.00 4,166.67 9,435.62

Question