Question

In: Finance

A bank makes a 10-year loan of $100,000 at an interest rate of 12%. What are...

A bank makes a 10-year loan of $100,000 at an interest rate of 12%. What are the monthly payments. What is the balance at the end of year 4?

Solutions

Expert Solution


Related Solutions

A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent....
A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year. A. what will be the cash flows at the end of six months and at the end of the year? B. What is the present value of each cash flow discounted at...
A bank makes a 30-year fully amortizing FRM for $100,000 at an annual interest rate of...
A bank makes a 30-year fully amortizing FRM for $100,000 at an annual interest rate of 7% compounded monthly, with monthly payments. What is the market value of this loan five years later if the annual market interest rate for this loan drops to 4%? (Show your answer rounded to two decimal places.)
A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and...
A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points. What is the effective interest rate? 10%, 9%, 10.37%, or 10.24%?
a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and...
a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and the loan calls for equal payments. How much interest is paid in the fifth year? How much interest is paid over the life of the loan? b)What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?
Answer the following: A bank makes a loan at a 7.0% nominal interest rate to a...
Answer the following: A bank makes a loan at a 7.0% nominal interest rate to a business. For each of the following scenarios, calculated the expected and actual real interest rates on the loan and state whether the bank is better-off, worse-off, or just as well-off as it expected. Inflation was expected to be 4%, but actual inflation was 2% Inflation was expected to be 3%, but actual inflation was 3% Inflation was expected to be 2% and actual inflation...
5. QRS Bank is charging a 12 percent interest rate on a $5,000,000 loan. The bank...
5. QRS Bank is charging a 12 percent interest rate on a $5,000,000 loan. The bank also charged $100,000 in fees to originate the loan. The bank has a cost of funds of 8 percent. The borrower has a five percent chance of default, and if default occurs, the bank expects to recover 90 percent of the principal and interest. What is the risk of the loan using the Moody's Analytics model? Briefly discuss.
1) A 1 1/2 -year loan in the amount of $100,000 with 12% interest was taken...
1) A 1 1/2 -year loan in the amount of $100,000 with 12% interest was taken out on June 1, 2020. a) Calculate the interest for December 31. (Hint: From June 1 - Dec 31 -- use your fingers) Note Payable Entries b) Prepare the journal entry for the issuance of the Note Payable. c) Prepare the adjusting journal entry for interest expense – December 31, 2020    (HINT: found amount in a) d) Prepare the journal entry at maturity...
a borrower takes out a 15 year mortgage loan for 100,000 with an interest rate of...
a borrower takes out a 15 year mortgage loan for 100,000 with an interest rate of 5% plus 3 points. what is the effective annual interest rate on the loan if the loan is carried 15 years.
Calculate the balloon payment after 5 years on a $100,000 loan with an 10% interest rate,...
Calculate the balloon payment after 5 years on a $100,000 loan with an 10% interest rate, a 20-year amortization and monthly payments of $965.02
The amount of a loan is $100,000 with an interest rate of 8%. The life of...
The amount of a loan is $100,000 with an interest rate of 8%. The life of the loan is 4 years. Create a loan amortization table.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT