Question

In: Finance

John borrows $50,000 and plans to pay it back in four equal semi-annual installments. The annual...

John borrows $50,000 and plans to pay it back in four equal semi-annual installments. The annual interest rate is 8%. Calculate the amount of each installment and exhibit the amortization table.

a. the balance of the loan after the second payment is refinanced for the remaining two payments at annual rate of 6%, calculate the amount by which total interest payment would be reduced.

Solutions

Expert Solution

­

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

USED EXCEL AS NOTHING WAS MENTIONED, HELP WITH FINANCIAL CALCULATOR, LET ME KNOW

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

John wins $1,00,000 in a lottery and will be paid 20 equal installments of $50,000 with...
John wins $1,00,000 in a lottery and will be paid 20 equal installments of $50,000 with the first payment due today. A banker offers to exchange John’s winnings for a perpetuity of $ X per month with the first payment due today. Find the value closest to $ X assuming a 10% effective rate of interest. (A) $3,330 (B) $3,360 (C) $3,550 (D) $3,700 (E) $3,730 I'd appreciate it if you could let me know.
Jia borrows $50,000 at 10 percent annually compounded interest to be repaid in four equal annual...
Jia borrows $50,000 at 10 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year loan payment is
Chad borrows $75,000 and agrees to repay the loan in five equal annual installments. The loan's...
Chad borrows $75,000 and agrees to repay the loan in five equal annual installments. The loan's interest rate is 6.75 percent. What is his loan's balance after making the third payment?
Consider a $50,000 loan to be repaid in equal installments at the end of each of...
Consider a $50,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10%. 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 $    $   ...
A loan of Rs 7,00,000 is to be paid in 5 equal annual installments. If the...
A loan of Rs 7,00,000 is to be paid in 5 equal annual installments. If the rate of interest is 10% pa compounded annually. Find the amount of each annual installment and also prepare the loan amortization schedule. please try to give answer within 1Hr
A loan of Rs 5,00,000 is to be paid in 5 equal annual installments. If the...
A loan of Rs 5,00,000 is to be paid in 5 equal annual installments. If the rate of interest is 10% p.a compounded annually. Find the amount of each annual installment and also prepare the loan amortization schedule.
Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 19.00 year, semi-annual pay bond that has a coupon rate of 7.96%. If the yield to maturity for the bond is 8.12%, what will the price of the bond be?
Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 13.00%. If the yield to maturity for the bond is 13.0%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places.
Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, semi-annual pay bond that has a coupon rate of 7.82%. If the yield to maturity for the bond is 8.13%, what will the price of the bond be? Answer format: Currency: Round to: 2 decimal places.
Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...
Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 8.02%. If the yield to maturity for the bond is 7.60%, what will the price of the bond be? Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 7.91%. If the yield to maturity for the bond is 8.43%, what will the price...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT