42.You are borrowing $100,000 at 5% interest EAR to be repaid over 20 years in equal...

42.You are borrowing $100,000 at 5% interest EAR to be repaid over 20 years in equal annual payments of blended principal and interest. Each payment is $8,024.26. Payments are to be made at the end of each of the next 20 years. What is the interest component of the 12th payment?

Select one:a. $2,556.61b. $3,298.77c. $1,225.93d. $2,851.75e. None of the above

Solutions

Expert Solution

(Please provide your valuable feedback and feel free to ask if any query. Thank You)

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You are borrowing $100,000 at 5% interest EAR to be repaid over 20 years in equal...

You are borrowing $100,000 at 5% interest EAR to be repaid over 20 years in equal annual payments of blended principal and interest. Each payment is $8,024.26. Payments are to be made at the end of each of the next 20 years. What is the interest component of the 12th payment? Select one: a. $2,556.61 b. $3,298.77 c. $1,225.93 d. $2,851.75 e. None of the above

A debt of $6,500.00 is repaid in equal monthly installments over 4 years. The interest rate...

A debt of $6,500.00 is repaid in equal monthly installments over 4 years. The interest rate is 9% and compounded monthly. a. What is the size of the monthly payment? b. What will be the total cost of borrowing? c. What is the outstanding balance after 1 years? d. How much is the 30th payment is interest? P.S. i need a detailed answer please.

you are taking out a $100,000 mortgage loan to be repaid over 25 years in 300...

you are taking out a $100,000 mortgage loan to be repaid over 25 years in 300 monthly payments. a. if the interest rate is 16% per year, what is the amount of the monthly payment? b. if you can only afford to pay $1000 per month, how large a loan can you take? c. if you can afford to pay $1500 per month and need to borrow $100,000, how many months would it take to pay the mortgage? d. if...

1. An individual is borrowing $100,000 at 8% compounded annually. The loan is to be repaid...

1. An individual is borrowing $100,000 at 8% compounded annually. The loan is to be repaid in equal annual payments over 30 years. a. What is the annual payment? b. If the individual paid P8,000 per year instead of the calculated amount in a, how long will it take to pay for the loan in full maintaining the same interest rate? c. If the borrower wanted to pay P8,000 per year in 30 years, what is the rate of interest...

$100,000 is invested for 20 years at 5%. What are the proceeds using: simple interest annual...

$100,000 is invested for 20 years at 5%. What are the proceeds using: simple interest annual compound interest semi-annual compounding? In the question above, what must the annual compounding rate be in order to produce the same proceeds as 5% semi-annual? What must the quarterly compounding rate be in order to produce the same proceeds as 5% semi-annual?

Consider a loan for $100,000 to be repaid in equal installments at the end of each...

Consider a loan for $100,000 to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 6% compounded annually. What is the remaining balance of the loan after 2 years?

Consider a loan for $100,000 to be repaid in equal installments at the end of each...

Consider a loan for $100,000 to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 5% compounded annually. What is the remaining balance of the loan after 2 years ? $62,900 $76,903 $62,336 $23,097 $53,805

Consider a loan for $100,000 to be repaid in equal installments at the end of each...

Consider a loan for $100,000 to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7% compounded annually. What is the remaining balance of the loan after 2 years? $63,456 $24,389 $64,005 $75,611 $51,222

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.

A loan of 100,000 is being repaid by 15 equal installments made at the end of...

A loan of 100,000 is being repaid by 15 equal installments made at the end of each year at 6% interest effective annually. Immediately after the eighth payment, the loan is renegotiated as follows: (i) The borrower will make seven annual payments of K to repay the loan, with the first payment made three years from the date of renegotiation. (ii) The interest rate is changed from 7.5% effective annually. Calculate K (do not use excel) (A) 11,068 (B) 11,666...

Subjects