Question
In: Finance
An investor plans to borrow $20,000. The loan will be repaid in 5 annual payments. The...
An investor plans to borrow $20,000. The loan will be repaid in 5 annual payments. The interest rate charged is 7%. Find the loan payment and amortize the loan
Use formulas and show step by step with calculations.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A loan of $20,000 is repaid through annual, end of year payments of $2,500 each. The...
A loan of $20,000 is repaid through annual, end of year payments
of $2,500 each. The end of year final payment is reduced and the
annual effective rate is 8%. Find the outstanding loan balance
after $15,000 has been repaid.
A loan of 10000$ 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...
A loan of $5000 is repaid with annual payments at the end of each year of...
A loan of $5000 is repaid with annual payments at the end of
each year of $1200,$800,$1300 and X. Assume the loan has 10%
effective interest per year. a) Determine X b) Determine the amount
of interest paid with the third payment.
Madelyn has a loan to be repaid by 16 annual payments at an effective annual interest...
Madelyn has a loan to be repaid by 16 annual payments at an
effective annual interest rate of 5%. Payments 1-10 are $600 each,
payments 11-14 are $380 each, and the last 2 payments are $570
each.
The interest portion in Madelyn's 13th payment is?
Madelyn has a loan to be repaid by 16 annual payments at an effective annual interest...
Madelyn has a loan to be repaid by 16 annual payments at an
effective annual interest rate of 5%. Payments 1-10 are $600 each,
payments 11-14 are $380 each, and the last 2 payments are $570
each.
The interest portion in Madelyn's 13 th payment is?
(I have already posted this question and they got 21.95%, which
is incorrect!)
A company borrowed $500,000 and repaid the loan through yearly payments of $20,000 for 24 years...
A company borrowed $500,000 and repaid the loan through yearly
payments of $20,000 for 24 years plus a single lump-sum payment of
$1,000,000 million at the end of 24 years. The interest rate on the
loan was closest to:
6% per year
4% per year
0.5% per year
8% per year
The following five alternatives that are evaluated by
the rate of return method, If the alternatives are
mutually exclusive and the MARR is 15% per year, the alternative to...
Donald takes out a loan to be repaid with annual payments of $500 at the end...
Donald takes out a loan to be repaid with annual payments of
$500 at the end of each year for 2n years. The annual effective
interest rate is 4.94%. The sum of the interest paid in year 1 plus
the interest paid in year n + 1 is equal to $720. Calculate the
amount of interest paid in year 10.
A loan of $10,000 is to be repaid with 10 semi-annual payments. The first payment is...
A loan of $10,000 is to be repaid with 10 semi-annual payments.
The first payment is X in 6 months time. i(2) = 4%. Find X if
a) Payments increase by $100 every 6 months.
b) Payments increase by 10% every 6 months.
FINANCIAL MATH QUESTION 1 The loan of $ 20,000, received at 9% annual interest, is repaid...
FINANCIAL MATH
QUESTION 1
The loan of $ 20,000, received at 9% annual interest, is repaid
as follows:
(a) after 2 months $ 5,000,
(b) after 5 months, the amount X,
(c) after 9 months $ 8,000.
How much to pay after 5 months? Interest is calculated on the
balance of the debt. Time calculation method
"30/360".
A loan will be repaid in 5 years with monthly payments at a nominal interest rate...
A loan will be repaid in 5 years with monthly payments at a
nominal interest rate of 9% monthly convertible. The first payment
is $1000 and is to be paid one month from the date of the loan.
Each succeeding monthly payment will be 2% lower than the prior
payment. Calculate the outstanding loan balance immediately after
the 40th payment is made.
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