Question
In: Finance
1. A $1000 loan is being repaid by payments of $100 at the end of each...
1. A $1000 loan is being repaid by payments of $100 at the end of each quarter for as long as necessary, plus a smaller final payment. If the nominal rate of interest convertible quarterly is 16%, find the amount of principal and interest in the fourth payment.
2. A loan is being repaid with level payments at the end of each year for 20 years at 9% effective annual interest. In which payment are the principal and the interest most nearly equal to each other?
3. A loan of $12,000 is to be repaid with equal payments at the end of each year for 20 years. The principal portion of the 13th payment is 1.5 times the principal portion of the 5th payment. Calculate the total amount of interest paid on the loan.
Solutions
Expert Solution
multiple questions posted as per policy I am solving 1 and 2
1) principal=67.49
interest=32.51
2)I have taken arbitary example and answer is year 3
jeff jeffy answered 1 year agoRelated Solutions
A $1000 loan is being repaid with level payments at the end of each year for...
A $1000 loan is being repaid with level payments at the end of
each year for 4 years using a sinking fund method. The loan has 10%
effective interest per year and the sinking fund has 8% interest per
year. Create a sinking fund table for this payment plan. Include a
column for the period, interest paid that period, sinking fund
deposit that period, interest earned in the sinking fund that
period and the balance in the sinking fund at...
A loan is being repaid with 20 payments of $ 1,000 at the end of each...
A loan is being repaid with 20 payments of $ 1,000 at the end of
each quarter. Given that the nominal rate of interest is 8% per
year compounded quarterly, find the outstanding balance of the loan
immediately after 10 payments have been made (a) by the prospective
method, (b) by the retrospective method.
a 30 year loan of 1000 is repaid with payments at the end of each year....
a 30 year loan of 1000 is repaid with payments at the end of
each year. Each of the first 10 payments equals the amount of
interest due. Each of the next 10 payments equals 150% of the
amount of interest due. Each of the last 10 payments is X. The
lender charges interest at an effective annual rate of 10%.
Calculate X.
please explain, having much trouble with this problem,
Thanks!
A loan of €50,000 is being repaid with monthly level payments at the end of each...
A loan of €50,000 is being repaid with monthly level payments at
the end of each year for 6 years at 5% effective rate. Just after
making the payment of the second annuity, it is decided to change
the amortization method, the loan is being repaid with constant
annual principal repayments for the remaining 3 years at an
interest rate of 4.5%.
A) find the outstanding debt just after the payment of the third
annuity
A loan of €50,000 is being repaid with monthly level payments at the end of each...
A loan of €50,000 is being repaid with monthly level payments at
the end of each year for 6 years at 5% effective rate. Just after
making the payment of the second annuity, it is decided to change
the amortization method, the loan is being repaid with constant
annual principal repayments for the remaining 3 years at an
interest rate of 4.5%.
find the outstanding debt just after the payment of the third
annuity
A loan of $10,000 is being repaid with 10 payments at the end of each year,...
A loan of $10,000 is being repaid with 10 payments at the end of
each year, where each payment includes equal amount of repayment of
the principal and the interest at a rate of 5% based on the
outstanding balance after the previous payment. Immediately after
the loan was made, the right of the loan was sold at a price that
yields an annual effective rate of 10%. Find the price paid for the
right of the loan. (Answer: $8072.28)...
8. (6pts) A loan is being repaid by payments of $2000 at the end of each...
8. (6pts) A loan is being repaid by payments of $2000 at the end
of each half-year at nominal rate of 6% convertible semiannually,
and a smaller final payment is made after the last regular payment.
If the loan balance at the end of the third year is $15,000,
find
(1) the amount of the loan. (Answer: $23,396.65)
(2) the loan balance right after the last regular payment.
(Answer: $1,216.88)
(3) the amount of principal and the amount of interest...
A 18 year loan is being repaid with level payments at the end of each month....
A 18 year loan is being repaid with level payments at the end of
each month. The loan rate of interest is 15.6% compounded monthly.
In which month is the interest portion approximately equal to 5
times principal the portion? Give an integer answer.
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT