A debt must be settled in two years, through payments of 6000 dollars every two months...

A debt must be settled in two years, through payments of 6000 dollars every two months overdue. The debtor agrees with his creditor to restructure the debt liquidating the debt in 3 years and a half with equal monthly payments due. Calculate the value of the new payments, if the The effective interest rate is 13% per annum.

Expert Solution

Date	Beginning Balance	Payment	Interest	Principal	Cumulative Principal	Cumulative Interest	Ending Balance
6/1/2019	$150,000	$5,054	$1,625	$3,429	$3,429	$1,625	$146,571
7/1/2019	$146,571	$5,054	$1,588	$3,466	$6,895	$3,213	$143,105
8/1/2019	$143,105	$5,054	$1,550	$3,504	$10,399	$4,763	$139,601
9/1/2019	$139,601	$5,054	$1,512	$3,542	$13,941	$6,275	$136,059
10/1/2019	$136,059	$5,054	$1,474	$3,580	$17,521	$7,749	$132,479
11/1/2019	$132,479	$5,054	$1,435	$3,619	$21,140	$9,185	$128,860
12/1/2019	$128,860	$5,054	$1,396	$3,658	$24,798	$10,581	$125,202
1/1/2020	$125,202	$5,054	$1,356	$3,698	$28,496	$11,937	$121,504
2/1/2020	$121,504	$5,054	$1,316	$3,738	$32,234	$13,253	$117,766
3/1/2020	$117,766	$5,054	$1,276	$3,778	$36,012	$14,529	$113,988
4/1/2020	$113,988	$5,054	$1,235	$3,819	$39,831	$15,764	$110,169
5/1/2020	$110,169	$5,054	$1,193	$3,861	$43,692	$16,957	$106,308
6/1/2020	$106,308	$5,054	$1,152	$3,902	$47,594	$18,109	$102,406
7/1/2020	$102,406	$5,054	$1,109	$3,945	$51,539	$19,219	$98,461
8/1/2020	$98,461	$5,054	$1,067	$3,987	$55,526	$20,285	$94,474
9/1/2020	$94,474	$5,054	$1,023	$4,031	$59,557	$21,309	$90,443
10/1/2020	$90,443	$5,054	$980	$4,074	$63,631	$22,288	$86,369
11/1/2020	$86,369	$5,054	$936	$4,118	$67,750	$23,224	$82,250
12/1/2020	$82,250	$5,054	$891	$4,163	$71,913	$24,115	$78,087
1/1/2021	$78,087	$5,054	$846	$4,208	$76,121	$24,961	$73,879
2/1/2021	$73,879	$5,054	$800	$4,254	$80,374	$25,761	$69,626
3/1/2021	$69,626	$5,054	$754	$4,300	$84,674	$26,516	$65,326
4/1/2021	$65,326	$5,054	$708	$4,346	$89,021	$27,223	$60,979
5/1/2021	$60,979	$5,054	$661	$4,393	$93,414	$27,884	$56,586
6/1/2021	$56,586	$5,054	$613	$4,441	$97,855	$28,497	$52,145
7/1/2021	$52,145	$5,054	$565	$4,489	$102,344	$29,062	$47,656
8/1/2021	$47,656	$5,054	$516	$4,538	$106,882	$29,578	$43,118
9/1/2021	$43,118	$5,054	$467	$4,587	$111,469	$30,045	$38,531
10/1/2021	$38,531	$5,054	$417	$4,637	$116,106	$30,463	$33,894
11/1/2021	$33,894	$5,054	$367	$4,687	$120,793	$30,830	$29,207
12/1/2021	$29,207	$5,054	$316	$4,738	$125,531	$31,146	$24,469
1/1/2022	$24,469	$5,054	$265	$4,789	$130,320	$31,411	$19,680
2/1/2022	$19,680	$5,054	$213	$4,841	$135,160	$31,625	$14,840
3/1/2022	$14,840	$5,054	$161	$4,893	$140,054	$31,785	$9,946
4/1/2022	$9,946	$5,054	$108	$4,946	$145,000	$31,893	$5,000
5/1/2022	$5,000	$5,054	$54	$5,000	$150,000	$31,947	$0

jeff jeffy answered 1 year ago

Find the present value of payments of $200 every six months starting immediately and continuing through...

Find the present value of payments of $200 every six months starting immediately and continuing through four years from the present, and $100 every six months thereafter through ten years from the present, if i (2) = 0.06.

Find the present value of payments of $250 every six months starting immediately and continuing through...

Find the present value of payments of $250 every six months starting immediately and continuing through 6 years from the present, and $200 every six months thereafter through 12 years from the present. if i^(2) = 4%.

A demand loan of $6000 is repaid by payments of $3000 after two years, $3000 after...

A demand loan of $6000 is repaid by payments of $3000 after two years, $3000 after four years, and a final payment after seven years. Interest is 8% compounded quarterly for the first two years, 9% compounded semi-annually for the next two years, and 9% compounded quarterly thereafter. What is the size of the final payment?

A debt of $7000 due today is to be settled by three equal payments due 3...

A debt of $7000 due today is to be settled by three equal payments due 3 months from now, 15 months from now, and 27 months from now. What is the size of the equal payments at 11% compounded annually?

What is logarithmic growth? If you put 100 dollars in a savings account every two months...

What is logarithmic growth? If you put 100 dollars in a savings account every two months from age 15 until age 50, and this account earned 6% annually, could you retire at age 50?

a debt of 500 dollars is paid 25 dollars every end of the year for 30...

a debt of 500 dollars is paid 25 dollars every end of the year for 30 years, if the borrower replaces the debt principal with a sinking fund that produces an effective annual interest rate of 1.5%, calculate the annual effective interest rate paid by the borrower on this debt. Choose the answer that is closest! a) 1,54% b) 2,43% c) 2,90% d) 3,54% e) 3,90% dont use excel!! manually!!

Scheduled debt payments of $750 due seven months ago, $600 due two months ago, and $900...

Scheduled debt payments of $750 due seven months ago, $600 due two months ago, and $900 due in five months are to be settled by two equal replacements payments due now and three months from now. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.

A debt can be repaid by payments of $5125.00 today, $4770.00 in two years and $5600.00...

A debt can be repaid by payments of $5125.00 today, $4770.00 in two years and $5600.00 in five years. What single payment would settle the debt three years from now if money is worth 9.88% p.a. compounded quarterly?

1. A debt of $9239.82 is repaid by payments of $1356.45 in 8 months, $1151.87 in...

1. A debt of $9239.82 is repaid by payments of $1356.45 in 8 months, $1151.87 in 13 months, and a final payment in 35 months. If interest was 7% compounded annually, what was the amount of the final payment? 2. Joan borrowed $14,000.00 to buy a car. She repaid $3700.00 three months later and $5900.00 eight months later. After twelve months, she borrowed an additional $4400.00, and repaid $4100.00 after 19 months. She paid the entire balance, including the interest,...

2 Assume that a bond will make payments every six months as shown on the following...

2 Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 50. The timeline shows a cash flow of $ 19.31 each from Period 1 to Period 49. In Period 50, the cash flow is $ 19.31 plus $ 1,000. Period012nothing4950 Cash Flows nothing$ 19.31$ 19.31nothing$ 19.31$ 19.31 plus $ 1,000 a. What is the maturity of the bond(in years)? b....

Question