Question
In: Finance
John takes out a college loan today of 5000 at 4% per year. John is expected...
John takes out a college loan today of 5000 at 4% per year.
John is expected to make 20 annual payments of X at the end of each
year to repay the loan, starting a year from today. Starting with
the sixth payment, John can only pay one quarter of X at the end of
each year. This goes on for 10 payments. The bank agrees to
accumulate the unpaid balance at 4%. After making the ten reduced
payments, the loan is renegotiated with the bank. Compute the
revised level payment P that will yield the bank 5% per year over
the remaining 5 years of the term of the original loan.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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first 3 years. Afterwards, the loan will revert to the market
interest rate.
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fixed interest rate of 3.6% per annum compounding monthly for the
first 3 years. Afterwards, the loan will revert to the market
interest rate. Malorie will make monthly repayments over the next
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for the first 3 years. Afterwards, the loan will revert to the
market interest rate.
Malorie will make monthly repayments over the next 20
years, the first of which is exactly one month from today. The bank
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interest rate. Malorie will make monthly repayments over the next
20 years, the first of which is exactly one month from today. The
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Today, Malorie takes out a 20-year loan of $200,000,
with a fixed interest rate of 4.9% per annum compounding monthly
for the first 3 years. Afterwards, the loan will revert to the
market interest rate.
Malorie will make monthly repayments over the next 20
years, the first of which is exactly one month from today.
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fixed interest rate of 4.9% will stay the same over the coming 20
years.
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Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 4.9%...
Today, Malorie takes out a 20-year loan of $200,000,
with a fixed interest rate of 4.9% per annum compounding monthly
for the first 3 years. Afterwards, the loan will revert to the
market interest rate.
Malorie will make monthly repayments over the next 20
years, the first of which is exactly one month from today. The bank
calculates her current monthly repayments assuming the fixed
interest rate of 4.9% will stay the same over the coming 20
years.
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