Question

In: Economics

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

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

You borrow $720,000 at 3.25% per year compounded monthly and you plan to pay off this loan in equal annual payments starting one year after the loan is made over a period of fifteen (15) years.
You borrow $720,000 at 3.25% per year compounded monthly and you plan to pay off this loan in equal annual payments starting one year after the loan is made over a period of fifteen (15) years.a. 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?b. Restructure the loan in the previous question to make payments monthly. Determine the savings in interest overall.c....
You have agreed to pay off an $8,000 loan in 30 monthly payments of $298.79 per...
You have agreed to pay off an $8,000 loan in 30 monthly payments of $298.79 per month. The annual interest rate is 9% on the unpaid balance. (a) How much of the first month’s payment will apply towards reducing the principal of $8,000? (b) What is the unpaid balance (on the principal) after 12 monthly payments have been made?
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 payments of 90 for 10 years. (a) What is the monthly effective rate? What is the annual effective rate? (b) What is the outstanding loan balance immediately after the 7th payment? Calculate using both the retrospective and prospective formulas. (c) Assume you miss the 13th and 53rd payments, what will be the outstanding loan balance after the 71st payment? actuarial science
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,...
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...
If you pay off a loan early, you must also pay all the remaining interest payments...
If you pay off a loan early, you must also pay all the remaining interest payments along with the loan balance. Group of answer choices True False. Which of the following is correct? Group of answer choices Present values increase with a longer compounding period. Present values increase with a higher interest rate. Future values increase with a lower interest rate. Future values increase with a longer compounding period. 3. What does it mean when you see the message Error...
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 borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2...
You borrow $2,400 to pay for a Caribbean vacation and will pay it off over 2 years with regular monthly payments. What is the regular payment if interest is charged on the loan amount at APR of 12% interest is charged monthly on the balance still owed. Round up to the next whole dollar. Create an amortization table (balance sheet) for this loan. What is the amount of the balloon payment (the last payment)? What is the total amount of...
You borrow $24,000 to buy a car. The loan is to be paid off in quarterly...
You borrow $24,000 to buy a car. The loan is to be paid off in quarterly installments over four years at 10 percent interest annually. The first payment is due one quarter from today. What is the amount of each quarterly payment? a) $1,745 b) $1,794 c) $1,838 d) $1,876 I need the hand-written formula, not the calculator input.
1. You take out a $20,000, ten-year loan. Equal payments are to be made at the...
1. You take out a $20,000, ten-year loan. Equal payments are to be made at the end of each year at an interest rate of 10%. Calculate the appropriate loan table, showing the breakdown in each year between principal and interest. Cost 20,000 Payment $3,254.91 Interest 10% Years 10 Division of payment between: Year Principal at beginning of year Payment at end of year Interest Principal 1 2 3 4 5 6 7 8 9 10 0.00
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT